ACIT, NEW DELHI vs. SHRI CHARU SHEKHAR GUPTA, NEW DELHI
Facts
The assessee, Charu Shekhar Gupta, had multiple appeals before the ITAT concerning assessment years 2006-07 to 2012-13, involving proceedings under Section 153A and Section 271(1)(c) of the IT Act. The core issue in the assessee's appeals was the absence of incriminating material seized during a search on his premises on January 13, 2012, which is a mandatory condition for additions. The Revenue's appeals pertained to penalty proceedings that were deleted by the CIT(A) due to the reversal of quantum additions.
Held
The Tribunal noted that the CIT(A) had not made a clear finding on whether additions were based on specific seized material for the assessee's appeals. Therefore, these appeals were restored to the CIT(A) for fresh adjudication. For the Revenue's appeals and the assessee's cross-objection, the Tribunal found no reason to interfere with the CIT(A)'s findings.
Key Issues
Whether additions made are based on incriminating material seized during search, and whether penalty proceedings for deleted quantum additions are sustainable.
Sections Cited
153A, 143(3), 271(1)(c), 132(4)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA
IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘F’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No.479/Del/2017 Assessment Year: 2006-07 With ITA No.480/Del/2017 Assessment Year: 2007-08 With ITA No.6358/Del/2019 Assessment Year: 2006-07 With ITA No.6365/Del/2019 Assessment Year: 2007-08 With C.O. No.76/Del/2017 [Arising out of ITA No.499/Del/2017] Assessment Year: 2012-13 Charu Shekhar Gupta, Vs. ACIT, 203, Ashadeep Apartments, Central Circle-3, 9, Hailey Road, New Delhi New Delhi PAN: AAAPG6913C (Appellant) (Respondent) With ITA No.1154/Del/2017 Assessment Year: 2009-10 With ITA No.1156/Del/2017 Assessment Year: 2011-12 ACIT, Vs. Charu Shekhar Gupta, Central Circle-3, 203, Ashadeep Apartment, New Delhi 9, Hailey Road, New Delhi PAN: AAAPG6913C (Appellant) (Respondent)
ITA Nos.479 & 480/Del/2017; 6358 & 6365/Del/2019; ITA No.1154 & 1156/Del/2017; C.O. No.76/Del/2017
Assessee by Sh. Dinesh Chandra, Adv. Department by Ms. Monika Singh, CIT(DR) Date of hearing 16.02.2026 Date of pronouncement 16.02.2026
ORDER PER SATBEER SINGH GODARA, JM The instant batch of seven cases involves the single assessee
herein, namely, Sh. Charu Shekhar Gupta. All other relevant
details thereof stand tabulated as under:
Sl. Appeal No. Appellant Respondent Order Appealed against No. 1. ITA No. Sh. Charu ACIT, CC-3, CIT(A)-23, New Delhi’s order 479/Del/2017 Shekhar New Delhi dated 29.11.2016 in case for AY: 2006-07 Gupta no. 286 & 287/14-15 involving proceedings under Section 153A/143(3) of the Act. 2. ITA No. Sh. Charu ACIT, CC-3, CIT(A)-23, New Delhi’s order 480/Del/2017 Shekhar New Delhi dated 29.11.2016 in case for AY: 2007-08 Gupta no. 286 & 287/14-15 involving proceedings under Section 153A/143(3) of the Act. 3. ITA No. Sh. Charu ACIT, CC-3, CIT(A)-23, New Delhi’s order 6358/Del/2019 Shekhar New Delhi dated 27.05.2019 in case for AY: 2006-07 Gupta no. 287/15-16 involving proceedings under Section 271(1)(c) of the Act. 4. ITA No. Sh. Charu ACIT, CC-3, CIT(A)-23, New Delhi’s order 6365/Del/2019 Shekhar New Delhi dated 27.05.2019 in case for AY: 2007-08 Gupta no. 288/15-16 involving proceedings under Section 271(1)(c) of the Act. 5. C.O. No. Sh. Charu ACIT, CC-3, CIT(A)-23, New Delhi’s order 73/Del/32017 Shekhar New Delhi dated 29.11.2016 in case [Arising out of Gupta no. 288 to 292/14-15 ITA No. involving proceedings under 499/Del/2017] Section 153A/143(3) of the for AY: 2012-13 Act. 6. ITA No. ACIT, CC-3, Sh. Charu Shekhar CIT(A)-23, New Delhi’s order 1154/Del/2017 New Delhi Gupta dated 14.12.2016 in case for AY: 2009-10 nos. 289 to 293/15-16 involving proceedings under Section 271(1)(c) of the Act. 2 | P a g e
ITA Nos.479 & 480/Del/2017; 6358 & 6365/Del/2019; ITA No.1154 & 1156/Del/2017; C.O. No.76/Del/2017
ITA No. ACIT, CC-3, Sh. Charu Shekhar CIT(A)-23, New Delhi’s order 1156/Del/2017 New Delhi Gupta dated 14.12.2016 in case for AY: 2011-12 nos. 289 to 293/15-16 involving proceedings under Section 271(1)(c) of the Act. 2. We notice at the outset that the assessee’s twin appeals ITA Nos.479 & 480/Del/2017 involving section 153A proceedings and his instant as many consequential penalty(ies) cases ITA Nos.6358 & 6365/Del/2019, raise the first and foremost legal issue challenging correctness of the Assessing Officer’s relevant assessments for want of any incriminating material found/seized during the search herein, which forms a mandatory condition going by PCIT Vs. Abhisar Buildwell Pvt. Ltd. (2023) 454 ITR 212 (SC). This is for the precise reason that the learned departmental authorities appear to have carried out the search in issue at the assessee’s premises on 13.01.2012 which renders both these assessment years 2006-07 and 2007-08 as “unabated” ones wherein the corresponding seized material must form the basis of additions to be made in his hands. 3. That being the case, learned CIT(DR) refers to the Assessing Officer’s assessment discussion dated 05.03.2015 placing reliance on the assessee’s section 132(4) search statement and other material revealing the foreign bank accounts with HSBC, Zurich (Switzerland). 3 | P a g e
ITA Nos.479 & 480/Del/2017; 6358 & 6365/Del/2019; ITA No.1154 & 1156/Del/2017; C.O. No.76/Del/2017
Be that as it may, the fact remains that although the assessee had raised his corresponding legal grounds in the lower appellate proceedings i.e. ground no. III, the learned CIT(A) has not recorded any clear-cut finding as to whether the addition made in his hands is based on the specific seized material or not. That being the case, we hereby deem it appropriate to restore the assessee’s instant twin appeals ITA Nos. 479 & 480/Del/2017 along with the consequential as many penalty cases ITA Nos.6358 & 6365/Del/2019 back to the learned CIT(A) for his afresh appropriate adjudication as per law preferable within three opportunities of hearing. We order accordingly. These assessee four appeals ITA Nos.479 & 480/Del/2017 and ITA Nos.6358 & 6365/Del/2019 accordingly stand accepted for statistical purposes. 5. Next come the Revenue’s twin appeals ITA No.1154 & 1156/Del/2017 with assessee’s C.O. No.76/Del/2017 in ITA No. 499/Del/2017 involving section 271(1)(c) penalty proceedings. The Revenue could hardly dispute that the CIT(A) has deleted the impugned penalties levied by the Assessing Officer for the sole reason that the corresponding quantum additions already stood reversed in his lower appellate order which is stated to have 4 | P a g e
ITA Nos.479 & 480/Del/2017; 6358 & 6365/Del/2019; ITA No.1154 & 1156/Del/2017; C.O. No.76/Del/2017
attained finality. We thus find no reason to interfere with the CIT(A)’s clinching findings to the very effect. These Revenue’s twin appeals ITA Nos. 1154 & 1156/Del/2017 fail in very terms. The assessee’s cross objection C.O. No.76/Del/2017 is dismissed as rendered infructuous. 6. To sum up, these assessee four appeals ITA Nos.479 & 480/Del/2017 and ITA Nos.6358 & 6365/Del/2019 are allowed for statistical purposes. The Revenue’s twin appeals ITA Nos.1154 & 1156/Del/2017 and assessee’s cross objection C.O. No. 76/Del/2017 are dismissed as rendered infructuous in preceding terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 16th February, 2026 Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 16th February, 2026. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi
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