ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 3, DELHI vs. ASHOK KUMAR TYAGI, DELHI

1. The Ld. CIT(A) has erred on facts and in law in deleting the addition of Rs. 34,00,360/-made u/s 56(1) of the Act on account of income from other source ignoring the facts that the assessee did not respond to summons issued u/s 131 of the Act multiple times for recording his statement and verify the nature of business which he had claimed u/s 44AD of the Act.

ACIT vs Ashok Kumar Tyagi Further, the assessee did not respond to show cause notice issued during assessment proceedings. From the conduct of the assessee and his statement recorded on 16.05.2018, clearly established that assessee had no explanation and evidence to prove genuineness of claim u/s 44AD of the Act. 2 The Ld. CIT(A) has erred on facts and in law in deleting the protective addition u/s 69A of the Act for an amount of Rs.5,00,000/- despite the facts that document found during the course of search clearly show that the assessee (who is brother-in-law of Sh. Pradeep Tyagi) had made payment in cash to Sh. Fazaan on 28.01.2018. Assessee did not respond to summons u/s 131 of the Act issued during the course of assessment proceedings and therefore did not discharge the onus to explain the incriminating material seized in search.

3. The Ld. CIT(A) has erred in deleting protective addition u/s 69C of the Act for an amount of Rs. 71,67,000/-ignoring the fact that the document found during the course of search clearly indicated that the assessee has made cash payments to certain persons. The document contained the details of project in relation to which payment is made, date of payment and persons to whom the payment was made. 4 Ld. CIT(A) has erred in not appreciating the fact that the assessee did not respond to summons u/s 131 of the Act issued during the course of assessment proceedings and therefore did not discharge the onus of explaining the incriminating material found/seized during the search.

5. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal.”