DCIT, CENTRAL CIRCLE-1, JAIPUR, JAIPUR vs. TRILOK DEWAN, SIKAR

ITA 302/JPR/2025Status: DisposedITAT Jaipur08 July 202583 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 unexplained credits and expenditure, as there was no incriminating material found during the search that connected these additions to the assessee. However, the Tribunal found that the CIT(A) acted beyond its jurisdiction by directing the AO to re-open assessments under Section 147. The Tribunal cited the principle of finality in legal proceedings and the Supreme Court's observation that stale issues should not be reactivated. The CIT(A)'s authority was limited to deciding the appeal on the grounds presented, and it should have simply allowed the appeal on the deleted additions. By directing a re-opening under Section 147, the CIT(A) acted ultra vires. Therefore, the Assessee's cross-objections were allowed, and the Revenue's appeals were dismissed. The issue of whether the additions themselves were justified was not explicitly decided in favor of the Revenue, but the deletion by the CIT(A) was upheld on the basis of lack of incriminating material. The direction to re-open under Section 147 was quashed.

What were the facts?

This judgment concerns a batch of appeals filed by the Revenue (DCIT, Central Circle-01, Jaipur) and cross-objections by the Assessees (including Sh. Vaibhav Banka, Sh. Animesh Agarwal, Smt. Snehlata Agarwal, Priya Dewan, Sh. Subhash Chandra Banka, Smt. Usha Banka, Vipul Banka, Trilok Dewan, and Smt. Sarita Dewan) for Assessment Years 2014-15 and 2016-17. The appeals arise from orders of the Commissioner of Income Tax (Appeals) [CIT(A)] which had deleted additions made by the Assessing Officer (AO) under Section 153A of the Income Tax Act, 1961. The Revenue is aggrieved by the deletion of additions related to long-term capital gains and unexplained expenditure. The Assessees' cross-objections challenge directions given by the CIT(A) to the AO to re-open assessments 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 disallowing exemption of Long Term Capital Gains due to unexplained credits under Section 68 of the Income Tax Act, 1961. 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. 3. Whether, on the facts and in law, the CIT(A) erred in directing the AO to implement the judgment of the Supreme Court in the case of Abhisar Buildwell and CBDT Instruction No. 1 of 2023 by re-opening assessments under Section 147. Assessee's arguments: The Assessee argued that the CIT(A) erred in directing the AO to re-open assessments under Section 147, as the CIT(A)'s authority was limited to deciding the appeal before it. The Assessee relied on the principle of finality in legal proceedings and the Supreme Court's observation in Commissioner of Income-tax v. Bhanji Lavji [1971] 79 ITR 582 (SC) that an assessee is not obligated to instruct the Income-tax Officer on questions of law. Revenue's arguments: The Revenue contended that the CIT(A) was justified in deleting the additions related to unexplained credits and expenditure. The Revenue's grounds of appeal focused on the correctness of the CIT(A)'s deletion of these additions.

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 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 ITA. No. 290/JP/202

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