FAZLE RAOOF SHEIKH,BHILWARA vs. DCIT, AJMER
Facts
The assessee challenged three assessment orders for AY 2016-17 to 2018-19 which were confirmed by the CIT(A). The Assessing Officer (AO) made additions based on Hawala business activities, including 50% commission income and unexplained cash fund. A search and seizure operation yielded incriminating documents.
Held
The Tribunal held that the additions for AY 2016-17 and 2017-18 concerning Hawala commission income were not sustainable due to lack of specific incriminating material for those periods. However, the addition for AY 2018-19 was partly upheld. The addition of Rs. 4 crores made on a protective basis was not sustained.
Key Issues
Whether additions for Hawala business income for AY 2016-17 and 2017-18 are sustainable without specific incriminating material? Whether the addition for AY 2018-19 is justified? Whether the addition of Rs. 4 crores made on a protective basis is valid?
Sections Cited
144, 153A, 143(2), 69A, 132, 132(4), 132A, 271(1)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”B-BENCH” JAIPUR
Before: SHRI RATHOD KAMLESH JAYANTBHAI, AM& SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 379 to 381/JPR/2024
Result
As a result, appeals-ITA No. 379/JPR/2024 and ITA No.380/JPR/2024 are allowed and the impugned orders passed by Learned CIT(A) upholding the assessment orders for the assessment years 2016-17 and 2017-18 are hereby set aside.
Appeal-ITA No.381/JPR/2024 is partly allowed in the manner indicated above, and the impugned order passed by Learned CIT(A) and the assessment order are modified accordingly.
29 ITA No. 379 to 381/JPR/2024 Fazle Raoof Sheikh vs. DCIT Copy of the common order be placed in the connected two appeal files. Files of appeal be consigned to the record room after the needful is done by the office.
Order pronounced in the open court on 25/10/2024.
Sd/- Sd/- ¼jkBkSM+ deys'k t;UrHkkbZ ½ ¼ujsUnz dqekj½ (RATHOD KAMLESH JAYANTBHAI) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 25/10/2024 *Santosh आदेश की प्रतिलिपिअग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू The Appellant- Fazle Raoof Sheikh, Bhilwara. 1. 2. izR;FkhZ@ The Respondent- DCIT, Ajmer. 3. vk;djvk;qDr@ The ld CIT 4. विभागीय प्रतिनिधि] आयकरअपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत 5. xkMZQkbZy@ Guard File ITA No. 379 to 381/JPR/2024) vkns'kkuqlkj@ By order,
सहायक पंजीकार@Aेेजज. त्महपेजतंत