DCIT, CENTRAL CIRCLE-1, JAIPUR, JAIPUR vs. USHA BANKA, SIKAR

ITA 296/JPR/2025Status: DisposedITAT Jaipur08 July 202568 pages
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What did the Tribunal hold?

The Tribunal held that the CIT(A) was correct in deleting the additions made by the AO under Section 153A for want of incriminating material. However, the Tribunal found that the CIT(A) acted ultra vires by directing the AO to consider re-opening the assessment under Section 147. The Tribunal reasoned that the CIT(A)'s task was to decide the sustainability of the additions under Section 153A, and once deleted, their authority on that specific issue ended. The Tribunal emphasized the principle of finality in legal proceedings, stating that stale issues should not be reactivated. Therefore, the direction to re-open under Section 147 was quashed. The appeals of the revenue were dismissed, and the cross-objections of the assessees were allowed. The decision in the lead case was to apply mutatis mutandis to all connected appeals and cross-objections.

What were the facts?

The appeals were filed by the Revenue (DCIT, Central Circle-01, Jaipur) against the orders of the CIT(A) for assessment year 2016-17, and cross-objections were filed by the assessees. The primary dispute in the lead case (ITA No. 301/JP/2025, assessee Vaibhav Banka) concerns the deletion of additions made by the Assessing Officer (AO) under Section 153A of the Income Tax Act, 1961. The AO had made additions on account of unexplained credits (Rs. 40,15,061/-) and unexplained expenditure for commission (Rs. 2,05,753/-). The CIT(A) had deleted these additions. The assessees' cross-objection challenged the CIT(A)'s direction to the AO to implement the Supreme Court judgment in 'Abhisar Buildwell' and CBDT Instruction No. 1 of 2023, suggesting a re-opening under Section 147.

What were the issues?

1. Whether, on the facts and in law, the CIT(A) was justified in deleting the addition of Rs. 40,15,061/- made by the AO on account of unexplained credits under Section 68 of the Income Tax Act, 1961, disallowing the exemption of Long Term Capital Gains. 2. Whether, on the facts and in law, the CIT(A) was justified in deleting the addition of Rs. 2,05,753/- made by the AO on account of unexplained expenditure for commission to acquire accommodation entries. Assessee's Contentions (in Cross Objection): The assessee contended that the CIT(A) erred in directing the AO to implement the judgment of the Supreme Court in 'Abhisar Buildwell' and CBDT Instruction No. 1 of 2023, as this directed a re-opening under Section 147, which was beyond the scope of the appeal concerning additions under Section 153A. The assessee argued that the CIT(A)'s authority ended with deciding the sustainability of the Section 153A additions. The assessee relied on the principle that there must be finality in legal proceedings and that stale issues should not be reactivated, citing the Supreme Court's observation on the policy of law regarding finality. Revenue's Contentions: The revenue's grounds of appeal challenged the deletion of additions made by the AO under Section 68 and for unexplained expenditure.

Which sections of the Income-tax Act were involved?

Section 153A,Section 68,Section 147

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Cases cited in this judgment(10)Show list

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Heard together (4 matters)

ITA No. 301/JP/2025
CO. No. 02/JP/2025
ITA No. 290/JP/2025
CO. No. 03/JP/2025

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अधिकरण, जयपुर न्यायपीठ, जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, "B" JAIPUR डा० एस. सीतालक्ष्मी, न्यायिक सदस्य एवं श्री राठोड कमलेश जयन्तभाई, लेखा सदस्य के समक्ष BEFORE: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, आयकर अपील सं. / ITA No. 301/JP/2025 निर्धारण वर्ष / Assessment Year : 2016-17 DCIT, Central Circle-01, Jaipur बनाम Vs.

Sh. Vaibhav Banka Aakarshan, Shahpura Road, Neem Ka Thana, Sikar स्थायी लेखा सं. / जीआईआर सं./PAN/GIR No.: ANAPB5274A अपीलार्थी / Appellant प्रत्यर्थी / Respondent CO. No. 02/JP/2025 (Arising out of ITA. No. 301/JP/2025) निर्धारण वर्ष / Assessment Year : 2016-17 बनाम DCIT, Central Circle-01, Jaipur स्थायी लेखा सं./जीआईआर सं./PAN/GIR No.: ANAPB5274A अपीलार्थी / Appellant प्रत्यर्थी / Respondent आयकर अपील सं. / ITA No. 290/JP/2025 निर्धारण वर्ष / Assessment Year : 2016-17 DCIT, Central Circle-01, Jaipur बनाम Vs.

Sh. Animesh Agarwal C/o Shri Raj Kumar Agarwal Shahpura Road, Neem Ka Thana, Sikar स्थायी लेखा सं. / जीआईआर सं./PAN/GIR No.: APYPA3310A अपीलार्थी / Appellant प्रत्यर्थी / Respondent CO. No. 03/JP/2025 (Arising out of ITA. No. 290/JP/202

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