ACIT, CENTRAL CIRCLE- 26, NEW DELHI vs. SANJAY DALMIA, NEW DELHI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal confirmed the CIT(A)'s decision, holding that the additions were protective in nature and the substantive additions concerning the undisclosed income had already been addressed in the case of Sh. Anurag Dalmia. As the Revenue could not present any evidence to contradict this, the protective additions against the assessee were deemed unsustainable and liable for deletion.
What were the facts?
The Revenue challenged the CIT(A)'s order which deleted an addition of Rs. 43,97,038/- made by the AO. This addition pertained to undisclosed interest income derived from Rs. 10.99 crore deposits in HSBC Bank, Geneva, and was made on a protective basis against the assessee. The assessee had not provided details regarding these deposits during the assessment or appellate proceedings.
What were the issues?
Whether the CIT(A) correctly deleted protective additions made for undisclosed interest income from HSBC Bank accounts, given that substantive additions were already made in a related party's case.
Which sections of the Income-tax Act were involved?
None cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI
Before: Dr. B. R. R. KumarSh. Anubhav Sharma
Heard together (4 matters)
Read from the judgment's own cause title. This page is filed under one of them.
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeals have been filed by the Revenue against the orders of ld. CIT(A)-29, New Delhi dated 11.08.2017.
Since, the issue involved in all these appeals are similar, they were heard together and being adjudicated by a common order. In following grounds have been raised by the Revenue:
“1. That on the facts and in the circumstances of the case the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 43,97,038/- made by the AO on account of undisclosed interest income on the undisclosed deposits of Rs. 10.99 crore in HSBC Bank, Geneva without appreciating the fact that the assessee had not submitted any details regarding the same during the assessment proceedings or appellate proceedings. 2. That the grounds of appeal are without prejudice to each other.”
2 to 6554/Del/2017 Sanjay Dalmia 3. On going through the record, we find that the ld. CIT(A) has deleted the addition made on protective basis citing that the additions in substantive capacity have been dealt in the case of Sh. Anurag Dalmia and protective additions have been made in the case of the assessee. The ld. DR could not bring on record anything contrary to the observation of the ld. CIT(A). Hence, the protective additions made in the case of the assessee are liable to be deleted.
The order of the ld. CIT(A) is hereby confirmed.
In the result, the appeals of the Revenue are dismissed. Order Pronounced in the Open Court on 16/04/2024.
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