DCIT, CENTRAL CIRCLE-1, JAIPUR, JAIPUR vs. SNEHLATA AGARWAL, SIKAR

ITA 297/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 authority ended with deciding the appeal against the Section 153A assessment. The Tribunal cited the Apex Court's observation that there must be a point of finality in legal proceedings and that stale issues should not be reactivated. Therefore, the cross-objections of the assessees were allowed, and the directions to re-open under Section 147 were quashed. The appeals of the Revenue were dismissed. The decision in the lead case of ITA No. 301/JP/2025 and CO No. 02/JP/2025 was applied mutatis mutandis to all other connected appeals and cross-objections.

What were the facts?

The Income Tax Appellate Tribunal (ITAT), Jaipur Bench, heard a consolidated set of appeals and cross-objections filed by the Revenue (DCIT, Central Circle-01, Jaipur) and various assessees, including Sh. Vaibhav Banka, Sh. Animesh Agarwal, Smt. Snehlata Agarwal, Ms. Priya Dewan, Sh. Subhash Chandra Banka, Smt. Usha Banka, Sh. Vipul Banka, Sh. Trilok Dewan, and Smt. Sarita Dewan. The appeals pertained to Assessment Year 2016-17, with some also covering Assessment Year 2014-15. The Revenue's appeals challenged the orders of the Commissioner of Income Tax (Appeals) [CIT(A)] dated 31.12.2024, which had deleted additions made by the Assessing Officer (AO) under Section 153A of the Income Tax Act, 1961. The assessees' cross-objections arose from these same CIT(A) orders.

What were the issues?

1. Whether, on facts and in law, the CIT(A) was justified in deleting the addition of Rs. 40,15,061/- made by the AO, disallowing the exemption of Long Term Capital Gains on account of unexplained credits under Section 68 of the Income Tax Act, 1961? 2. Whether, on 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? The Revenue contended that the CIT(A) erred in deleting the additions made by the AO. The Assessee, in their cross-objection, argued that the CIT(A) had erred in directing the AO to consider re-opening the assessment under Section 147, as the CIT(A)'s authority was limited to deciding the sustainability of the additions made under Section 153A based on the facts and circumstances, particularly the absence of incriminating material. The assessee relied on the principle of finality in legal proceedings and the Apex Court's view that stale issues should not be reactivated beyond a certain stage.

Which sections of the Income-tax Act were involved?

Section 153A,Section 68,Section 147

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Cases cited in this judgment(11)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

Sh. Vaibhav Banka Aakarshan, Shahpura Road, Neem Ka Thana, Sikar

बनाम Vs.

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 I

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