M/S STANCE CONSUMER ELECTRONICS PRIVATE LIMITED,NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CC-32, DELHI

ITA 2791/DEL/2025Status: DisposedITAT Delhi13 February 2026AY 2016-17Bench: SHRI ANUBHAV SHARMA (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO could not make additions on issues not forming part of the reasons recorded for reopening. For AY 2017-18, the Tribunal found that the identity and creditworthiness of the buyer were established, and the sale price was higher than the fair market value, thus deleting the addition.

What were the facts?

The assessee's case was reopened based on information about alleged fund rotation. The Assessing Officer (AO) made additions for share sale consideration treated as unexplained credit, deviating from the initial reasons for reopening which concerned different transactions. The CIT(A) upheld these additions.

What were the issues?

Whether the AO can make additions beyond the scope of the reasons recorded for reopening. Whether sale consideration of shares can be treated as unexplained cash credit when identity and creditworthiness are established and the sale price is justified.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 68,Section 143(3),Section 56(2)(viib)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘B’: NEW DELHI

Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL

For Appellant: Shri Ashwani Kumar, CA and Shri Ankur Agarwal, CA
For Respondent: Ms. Indu Bala Saini, Sr. DR
Hearing: 20/01/2026Pronounced: 13/02/2026

PER MANISH AGARWAL, AM: The captioned two appeals are filed by the Assessee against two separate orders of ld. Commissioner of Income Tax (Appeals), New Delhi, both dated 29.03.2025 arising out of the Assessment Order for Assessment Year 2016-17 passed u/s 147 r.w.s. 144B of the Income Tax Act, 1961 (“the Act”) dated 28.03.2022 and for Assessment Year 2017-18 passed u/s 143(3) of the Act dated 17.12.2019. Stance Consumer Electronics Pvt. Ltd. vs. DCIT

2.

Since, both the appeals are of one assessee and having common issues, therefore, they are taken together and decided by a common order.

3.

The order continues below.

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