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DCIT, DELHI vs. GIRDHARI LAL CONSTRUCTION PVT. LTD., PUNJAB

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ITA 2147/DEL/2024[2021-22]Status: DisposedITAT Delhi07 November 202531 pages

Income Tax Appellate Tribunal, “B” BENCH, DELHI

Before: MS. MADHUMITA ROY&

For Appellant: Sh. Shrikant Namdeo, CIT(DR)
For Respondent: Sh. Amit Goyal, CA &
Hearing: 03.09.2025Pronounced: 07.11.2025

PER MADHUMITA ROY, JM:

The appeal filed by the Revenue is directed against the order passed by the learned Commissioner of Income Tax (Appeals) -30, New
Delhi (hereinafter referred to as “CIT(A)”) dated 22.02.2024 arising out of the order of assessment dated 30.03.2022 under Section 143(3) read with section 153A of the Income-Tax Act, 1961 (hereinafter referred to as "the Act") passed by the learned Assessing Officer, DCIT, Central Circle -
30. New Delhi (hereinafter referred to as “AO”), for AY – 2021-22. P a g e | 2
DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

2.

The Revenue has filed the appeal with the following grounds:

“1. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in partly allowing the appeal of assessee without considering the facts and circumstance of this case.
2. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 12,70,19,059/- on account of unexplained cash entries under section 69A of the Act.
3. The Ld. CIT(A) has ignored the finding of AO during assessment proceedings wherein the assessee falled to establish the creditworthiness and genuineness of the transactions of Rs.
12,70,19,059/-.
4. The order of the Ld. CIT(A) is erroneous and is not tenable on facts and in law.
5. That the grounds of appeal are without prejudice to each other.
6. The appellant craves to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal.”

3.

We have heard the rival submissions made by the respective parties and we have also considered the materials on record including the orders passed by the authorities below and the judgments relied upon by the respective parties.

4.

The brief facts leading to the case are that there was a search and seizure operation u/s 132 of the Act conducted on 26.10.2020 in the case of assessee along with the other cases of Sanjay Jain and Mehta Group at various residential and business premises. The year of search is financial year 2020-21 relevant to assessment year 2021-22 and is year under consideration before us. The assessee is an engineering,

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22) procurement and construction (EPC) contractor and undertakes accommodation projects mainly for Central Government agencies.
Assessee has furnished its return of income for the AY 2021-22 on 07.03.2022 declaring total income of Rs. 26,49,11,280/- u/s 139 of the Act. According to learned AO there are evidence that the assessee company was in practice of generating the cash through RTGS on the bogus bills acquired from the Sanjay Jain and his controlled entities.
During the course of search at the residential premises of the Director of the company and office premises of the company following cash was found as detailed below:

Sr.
No.
Address
Name
Total Cash found
Total Cash seized
Cash
Released i)
5A, 5th Floor, Central
Park, Gurgaon
Mr.
Vikas
Mehta
59,75,37,500/-
59,65,00,000/-
10,37,500/- ii)
1402,
Tower
No.
4,
Gurgaon
Mr. Amit Gupta
41,82,200/-
40,00,000/-
1,82,000/- iii)
House
No.
205,
Chandigarh
Mr.
Naveen
Mehta
34,05,900/-
30,00,000/-
4,05,900/- iv)
Locker No. 35, HDFC
Bank,
Sector
35B,
Chandigarh
Ms
Rashmi
Mehta Wife of Mr.
Vikas
Mehta
35,000/-
-
35,000
v)
Locker No. 108, HDFC
Bank,
Sector
35B,
Chandigarh
Mr.
Vijay
Mehta
34,94,500/-
34,94,500/-
--- vi)
Sarojini Nagar Office
GLCPL
3,70,000/-
--
3,70,000/- vii)
House
No.
410,
Chandigarh
GLCPL
30,100/-
--
30,100/- viii)
House
No.
22,
Chandigarh
GL Mehta
2,52,400/-
--
2,52,400

Total
60,98,07,600/-
60,74,94,500/-
10,37,500/-

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

4.

1 According to order of assessment, during the assessment proceedings Vikas Mehta, Amit Gupta and Naveen Mehta had submitted that the cash found at their residence belongs to Assessee Company and they had submitted the cash lying was same cash which was generated out of the RTGS done to the entities controlled and managed by Sanjay Jain. Learned Assessing Officer further referred to order of assessment for preceding assessment year 2020-21, that assessee has surrendered bogus purchases amounting to Rs. 93,55,94,461/- in assessment year 2019-20 and Rs. 6,13,73,201/- in assessment year 2020-2021, however during the assessment year 2020-21 the assessee has done RTGS amounting to Rs. 51,51,75,913/- against which cash was received by the assessee. Out of that cash, the cash amounting to Rs. 9,55,00,000/- was utilized for paying the cash components of the property bearing no. CS0025, DLF City Centre, Gurgaon, Haryana which was purchased from Krishan Kumar Chaudhary and Savita Chaudhary and registered in the name of assessee company on 27-12-2019, So the balance cash of Rs. 41,96,75,913/- generated in AY 2020-21 may be assumed to be cash which was seized. Likewise during assessment year 2021-22 cash amounting to Rs. 2,26,04,177/- was generated against the RTGS done from the entities controlled and managed by Sanjay Jain. Apart thereof Learned Assessing Officer has also considered the cash in hand held by the assessee company in its proper books of accounts on the date of search at various branches aggregating to Rs.4,05,08,451/-. Thus Learned AO concluded that the evidences with respect to piece-meal generation and application have been found, there was few of the evidence which shows that some part of the cash may be the same cash and has given relief to that extent in following manner:

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

Sr.
No.
Particulars
Amount (In Rs.)
1
Cash found from various Residential premises, Locker of the directors and office Premises of GLCPL
60,98,07,600/-
2
Less: Cash Balance generated in AY 2020-21 Against RTGS
Done and Cash generated in AY 2021-22 Against RTGS
Done(Rs. 41,96,75,913/- + Rs. 2,26,04,177/-)
44,22,80,090/-
3
Less: Cash in Hand as per Audited books of accounts of various branches
4,05,08,451/-
4
Unaccounted cash of the assessee company
12,70,19,059/-

4.

2. It is pertinent to add here that the learned Assessing Officer in the order of assessment noted that there are NOTE BUNDLE LABLES found which was on the cash seized from the residence of Vikas Mehta. The detailed summary of the same is given below:

Date
Bank Name
08.06.2018
HDFC Bank
08.06.2018
HDFC Bank
11.06.2018
HDFC Bank
11.06.2018
HDFC Bank
11.06.2018
HDFC Bank
14.06.2018
HDFC Bank
14.06.2018
HDFC Bank
15.06.2018
HDFC Bank
17.06.2018
HDFC Bank
12.07.2018
HDFC Bank
15.09.2018
HDFC Bank
09.11.2018
HDFC Bank
09.11.2018
HDFC Bank
22.01.2019
HDFC Bank
22.01.2019
HDFC Bank
24.01.2019
HDFC Bank
28.01.2019
HDFC Bank

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

28.

01.2019 HDFC Bank 15.02.2019 Axis Bank 15.02.2019 Axis Bank 15.02.2019 Axis Bank 15.02.2019 Axis Bank 15.02.2019 Axis Bank 15.02.2019 Axis Bank 15.02.2019 Axis Bank 22.02.2019 HDFC Bank 27.02.2019 HDFC Bank 27.02.2019 HDFC Bank 27.02.2019 HDFC Bank 05.03.2019 HDFC Bank 05.03.2019 HDFC Bank 08.03.2019 HDFC Bank 08.03.2019 HDFC Bank 08.03.2019 HDFC Bank 08.03.2019 HDFC Bank 08.03.2019 HDFC Bank 08.03.2019 HDFC Bank 08.03.2019 HDFC Bank 08.03.2019 HDFC Bank 08.03.2019 HDFC Bank 13.03.2019 HDFC Bank 13.03.2019 HDFC Bank 25.03.2019 HDFC Bank 26.03.2019 Kotak Bank 27.03.2019 HDFC Bank 28.03.2019 HDFC Bank 28.03.2019 HDFC Bank 28.03.2019 HDFC Bank 28.03.2019 HDFC Bank

4.

3 Likewise, the screen shots of these NOTE BUNDLE LABLE/NOTE SLIPS is given below: It is pertinent to mention that on these slips the date of bundling of cash is mentioned:

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

4.

4 Thus admittedly cash seized was also pertains to financial year 2018-19 relevant to assessment year 2019-20; however learned Assessing Officer has accepted the cash generated from assessment year 2020-21 and 2021-22 and has made addition of Rs. 12,70,19,059/- being unaccounted cash of the assessee company u/s 69A of the Act.

5.

Being aggrieved, assessee preferred the appeal before the Learned CIT(A). He stated that it is not in dispute that the assessee indulged into bogus invoicing through Shri Sanjay Jain from various entities managed and controlled by him to inflate purchases, avail fake GST credits and to generate cash. The modus operandi which was adopted by the assessee for bogus billing (inflation of purchases), payment to various entities of Shri Sanjay Jain through RTGS and the receipt of cash from Shri Sanjay Jain has been elaborately discussed by the AO and the same has been admitted by the appellant. The appellant admitted that all the purchases made by it from the entities managed and controlled by Shri Sanjay Jain were bogus and it had claimed fake input tax credit from such purchases. The appellant also admitted that cash received in lieu of RTGS payments made to the said fake entities after deduction of commission @3% from the entry providers. It is also not in dispute that the appellant reversed purchases made by it through these entities and declared additional income in the return filed u/s 153A for the AYs 2019- 20 and 2020-21 as under:

AY
Amount (Rs.)
2019-20
93,55,94,161/-

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

2020-21
6,13,73,201/-
Total
99,69,67,362/-

5.

1 Further from order of assessment for assessment year 2019-20 placed before Learned CIT(A) and also before us, CIT(A) observed that the, AO in the assessment order for AY 2019-20 that the assessee has made RTGS payments of Rs. 47,63,99,180/- and generated cash. Even in said order of assessment the AO has mentioned that the assessee company has taken bills of bogus purchases from Sanjay Jain entities amounting to Rs. 93,55,94,161/- and surrendered the same in the return of income filed by it for the AY 2019-20 as under (refer para 79 of the order):

Sl.
No.
Party Name
F.Y. 18-19
1
Shri Lakshmi Associates (Billing)
20,29,21,397/-
2
Mahaveer Associates (Billing)
23,34,75,280/-
3
Jain Cement Udyog (Billing)
24,63,11,930/-
4
Forever Exim India (P) Ltd.
25,25,87,355/-

Grand Total
93,55,95,963/-

The Assessing Officer further discussed in detail at para 7.2of the order of assessment for AY 2019-20 that the assessee has made RTGS

P a g e | 18
DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22) payment amounting to Rs. 47,63,99,180/- from its bank account maintained at Punjab National Bank as under:

Amount

Party Name

Month
20,00,000

JAIN CEMENT UDYOG

Apr-18
20,00,000

JAIN CEMENT UDYOG

May-18
30,00,000

MAHAVEER ASSOCIATES

May-18
20,00,000

JAIN CEMENT UDYOG

May-18
40,00,000

FOREVER EXIM INDIA PVT. LTD.
May-18
25,00,000

FOREVER EXIM INDIA PT. LTD.
May-13
15,00,000

FOREVER EXIM INDIA PVT. LTD.
May-18
25,00,000

FOREVER EXIM INDIA PT. LTD.
Jun-18
22,00,000

FOREVER EXIM INDIA PVT. LTD.
Jul-18
43,00,000

FOREVER EXIM INDIA PVT. LTD.
Aug-18
40,00,000

JAIN CEMENT UDYOG

Aug-18
38,65,600

MAHAVEER ASSOCIATES

Aug-18
12,00,000

FOREVER EXIM INDIA PVT. LTD.
Aug-18
19,00,000

FOREVER EXIM INDIA PVT. LTD.
Aug-18
25,00,000

JAIN CEMENT UDYOG

Aug-18
10,00,000

MAHAVEER ASSOCIATES

Aug-18

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

50,00,000

JAIN CEMENT UDYOG

Aug-18
13,00,000

FOREVER EXI INDIA, PUT. LTD.
Sep-18
40,00,000

FOREVER EXIM INDIA PVT. LTD.
Oct-18
30,00,000

MAHAVEER ASSOCIATES

Oct-18
30,00,000

SHRI LAKSHMI ASSOCIATES

Oct-18
25,00,000

FOREVER EXIM INDIA PUT. LTD.
Oct-18
35,00,000

JAIN CEMENT UDYOG

Oct-18
20,00,000

MAHAVEER ASSOCIATES

Oct-18
20,00,000

SHRI LAKSHMI ASSOCIATES

Oct-18
25,00,000

FOREVER EXIM INDIA PVT. LTD.
Oct-18
25,00,000

JAIN CEMENT UDYOG

Oct-18
30,00,000

MAHAVEER ASSOCIATES

Oct-18
20,00,000

SHRI LAKSHMI ASSOCIATES

Oct-18
25,00,000

FOREVER EXIM INDIA PVT. LTD.
Oct-18
25,00,000

JAIN CEMENT UDYOG

Oct-18
25,00,000

MAHAVEER ASSOCIATES

Oct-18
25,00,000

SHRI LAKSHMI ASSOCIATES

Oct-18
25,00,000

JAIN CEMENT UDYOG

Oct-18
25,00,000

SHRI LAKSHMI ASSOCIATES
Oct-18

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

30,00,000

FOREVER EXIM INDIA PVT. LTD
Oct-18
20,00,000

MAHAVEER ASSOCIATES

Oct-18
25,00,000

SHRI LAKSHMI ASSOCIATES

Oct-18
19,00,000

JAIN CEMENT UDYOG

Oct-18
20,00,000

MAHAVEER ASSOCIATES

Oct-18
30,00,000

FOREVER EXIM INDIA PVT. LTD
Oct-18
15,00,000

JAIN CEMENT UDYOG

Oct-18
15,00,000

FOREVER EXIM INDIA PVT. LTD.
Oct-18
12,00,000

MAHAVEER ASSOCIATES.

Oct-18
15,00,000

FOREVER EXIM INDIA PVT.LTD.
Oct-18
22,00,000

JAIN CEMENT UDYOG

OCt-18
13,50,000

JAIN CEMENT UDYOG

0ct-18
15,00,000

MAHAVEER ASSOCIATES

Oct-18
13,00,000

FOREVER EXIM INDIA PVT. LTD.
Oct-18
16,00,000

JAIN CEMENT UDYOG

Oct-18
20,00,000

MAHAVEER ASSOCIATES

Oct-18
15,30,000

JAIN CEMENT UDYOG

Oct-18
16,00,206

MAHAVEER ASSOCIATES

Oct-18
23,90,000

FOREVER EXIM INDIA PVT. LTD.
Oct-18

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

26,10,000

JAIN CEMENT UDYOG

Oct-18
17,00,000

FOREVER EXIMINDIA PVT. LTD.
Oct-18
17,00,000

JAIN CEMENT UDYOG

Oct-18
16,50,000

FOREVER EXIM INDIA PVT. LTD.
Nov-18
14,00,000

MAHAVEER ASSOCIATES

Nov-18
19,50,000

JAIN CEMENT UDYOG

Nov-18
20,00,000

MAHAVEER ASSOCIATES

Nov-18
10,00,000

FOREVER EXIM INDIA PVT. LTD.
Nov-18
20,00,000

MAHAVEER ASSOCIATES

Nov-18
15,00,000

FOREVER EXIM INDIA PVT. LTD.
Nov-18
19,00,000

JAIN CEMENT UDYOG

Nov-18
20,00,000

MAHAVEER ASSOCIATES

Nov-18
15,00,000

FOREVER EXIM INDIA PVT. LTD.
Nov-18
20,00,000

JAIN CEMENT UDYOG

Nov-18
15,00,000

MAHAVEER ASSOCIATES

Nov-18
20,00,000

JAIN CEMENT UDYOG

Nav-18
15,00,000

MAHAVEER ASSOCIATES

Nov-18
11,00,000

FOREVER EXIMINDIA PVT. LTD.
Nov-18
18,00,000

JAIN CEMENT UDYOG

Nov-18

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

15,00,000

JAIN CEMENT UDYOG

Nov-18
25,00,000

MAHAVEER ASSOCIATES

Nov-18
12,88,374

FOREVER EXIM INDIA PUT. LTD.
Nov-18
14,00,000

JAIN CEMENT UDYOG

Nov-18
15,00,000

FOREVER EXIM INDIA PYT. LTD.
Nov-18
25,00,000

JAIN CEMENT UDYOG

Nov-18
10,00,000

JAIN CEMENT UDYOG

Nov-18
25,00,000

MAHAVEER ASSOCIATES

Nov-18
27,00,000

JAIN CEMENT UDYOG

Nov-18
20,00,000

JAIN CEMENT UDYOG

Nov-18
20,00,000

MAHAVEER ASSOCIATES

Nov-18
15,00,000

JAIN CEMENT UDYOG

Dec-18
19,00,000

MAHAVEER ASSOCIATES

Dec-18
16,00,000

FOREVÉR EXIM INDIA PVT. LTD.
Dec-18
21,00,000

MAHAVEER ASSOCIATES

Dec-18
21,00,000

FOREVER EXIM INDIA PVT. LTD.
Dec-18
19,00,000

MAHAVEER ASSOCIATES

Dec-18
20,00,000

FOREVER EXIM INDIA PVT. LTD.
Dec-18
20,00,000

JAIN CEMENT UDYOG

Dec-18

P a g e | 23
DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

20,00,000

JAIN CEMENT UDYOG

Dec-18
25,00,000

SHRI LAKSHMI ASSOCIATES

Dec-18
10,00,000

FOREVER EXIM INDIA PVT. LTD.
Dec-18
25,00,000

SHRI LAKSHMI ASSOCIATES

Dec-18
20,00,000

JAIN CEMENT UDYOG

Dec-18
20,00,000

SHRI LAKSHMI ASSOCIATES

Dec-18
15,00,000

FOREVER EXIM INDIA PVT. LTD.
Dec-18
25,00,000

MAHAVEER ASSOCIATES

Dec-18
35,00,000

SHRI LAKSHMI ASSOCIATES

Dec-18
25,00,000

JAIN CEMENT UDYOG

Dec-18
20,00,000

MAHAVEER ASSOCIATES

Dec-18
20,00,000

SHRI LAKSHMI ASSOCIATES

Dec-18
10,00,000

JAIN CEMENT UDYOG

Dec-18
20,00,000

MAHAVEER ASSOCIATES

Dec-18
12,00,000

SHRI LAKSHMI ASSOCIATES

Dec-18
15,00,000

SHRI LAKSHMI ASSOCIATES

Dec-18
15,00,000

JAIN CEMENT UDYOG

Dec-18
20,00,000

SHRI LAKSHMI ASSOCIATES

Dec-18
10,00,000

JAIN CEMENT UDYOG

Dec-18

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

15,00,000

SHRI LAKSHMI ASSOCIATES

Dec-18
14,00,000

FOREVER EXIM INDIA PVT. LID.
Dec-18
11,00,000

MAHAVEER ASSOCIATES

Dec-18
10,00,000

FOREVER EXIM INDIA PVT. LTD.
Jan-19
10,00,000

JAIN CEMENT UDYOG

Jan-19
10,00,000

SHRI LAKSHMI ASSOCIATES

Jan-19
23,00,000

FOREVER EXIM INDIA PVT. LTD.
Jan-19
15,00,000

MAHAVEER ASSOCIATES

Jan-19
17,00,000

SHRI LAKSHMI ASSOCIATES

Jan-19
15,00,000

FOREVER EXIM INDIA PVT. LTD.
Jan-19
15,00,000

MAHAVEER ASSOCIATES

Jan-19
14,00,000

SHRI LAKSHMI ASSOCIATES

Jan-19
16,00,000

FOREVER EXIM INDIA PVT. LTD.
Jan-19
20,00 900

MAHAVEER ASSOCIATES

Jan-19
25,00,000

FOREVER EXIM INDIA PVT. LTD.
Jan-19
27,00,000

MAHAVEER ASSOCIATES

Jan-19
35,00,000

JAIN CEMENT UDYOG

Jan -19
10,00,000

MAHAVEER ASSOCIATES

Jan-19
20,00,000

SHRI LAKSHMI ASSOCIATES

Jan-19

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

10,00,000

FOREVER EXIM INDIA PVT. LTD.
Jan-19
20,00,000

JAIN CEMENT UDYOG

Jan-19
20,00,000

MAHAVEER ASSOCIATES

Jan-19
30,00,000

SHRI LAKSHMI ASSOCIATES

Jan-19
15,00,000

FOREVER EXIM INDIA PVT. LTD.
Jan-19
8,00,000

MAHAVEER ASSOCIATES

Jan-19
15,00,000

JAIN CEMENT UDYOG

Jan-19
15,00,000

SHRI LAKSHMI ASSOCIATES

Jan-19
20,00,000

FOREVER EXIM INDIA PVT. LTD.
Jan-19
29,75,000

MAHAVEER ASSOCIATES

Jan-19
20,00,000

SHRI LAKSHMI ASSOCIATES

Jan-19
20,00,000

FOREVER EXIM INDIA PVT. LTD. Jan-19
22,00,000

JAIN CEMENT UDYOG

Jan-19
18,00,000

MAHAVEER ASSOCIATES

Jan-19
25,00,000

SHRILAKSHMI ASSOCIATES

Jan-19
25,00,000

FOREVER EXIM INDIA PVT. LTD.
Feb-19
15,00,000

JAIN CEMENT UDYOG

Feb 12
15,00,000

MAHAVEER ASSOCIATES

Feb-19
30 00,000

SHRI LAKSHMI ASSOCIATES

Feb-19

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

21,00,000

FOREVER EXIM INDIA PVT. LTD:
Feb-19
24,00,000

JAIN CEMENT UDYOG

Feb-19
20,00,000

MAHAVEER ASSOCIATES

Feb-19
29,00,000

SHRI LAKSHMI ASSOCIATES

Feb-19
20,00,000

FOREVER EXIM INDIA PVT. LTD.
Feb-19
25,00,000

JAIN CEMENT UDYOG

Feb-19
25,00,000

MAHAVEER ASSOCIATES

Feb-19
30,00,000

SHRI LAKSHIMI ASSOCIATES

Feb-19
25,00,000

FOREVER EXIM INDIA PUT. LTD.
Feb-19
23,00,000

JAIN CEMENT UDYOG

Feb-19
27,00,000

MAHAVEER ASSOCIATES

Feb-19
10,00,000

JAIN CEMENT UDYOG

Feb-19
15,00,000

SHRI LAKSHMIASSOCIATES

Feb-19
20,00,000

FOREVER EXIM INDIA PVT. LTD:
Feb-19
15,00,000

SHRI LAKSHMLASSOCIATES

Feb-19
17,00,000

FOREVER EXIM INDIA PVT LTD.
Feb-19
18,00,000

JAIN CEMENT UDYOG

Feb-19
25,00,000

FOREVER EXIM INDIA PVT. LTD.
Feb-19
15,00,000

MAHAVEER ASSOCIATES

Feb-19

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DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

18,00,000

JAIN CEMENT UDYOG

Feb-19
12,00,000

SHRI LAKSHMI ASSOCIATES

Feb-19
25,00,000

JAIN CEMENT UDYOG

Feb-19
21,00,000

MAHAVEER ASSOCIATES

Feb-19
15,00,000

FOREVER EXIM INDIA PUT. LTD.
Feb-19
18,00,000

JAIN CEMIENT UDYOG

Feb-19
30,00,000

MAHAVEER ASSOCIATES

Feb-19
20,00,000

SHRI LAKSHMI ASSOCIATES

Feb-19
35,00,000

FOREVER EXIM INDIA PUT. LTD.
Feb-19
15,00,000

MAHAVEER ASSOCIATES

Feb-19
23,00,000

JAIN CEMENT UDYOG

Feb-19
22,00,000

SHRI LAKSHMI ASSOCIATES

Feb-19
20,00,000

FOREVER EXIM INDIA PVT. LTD.
Mar-19
25,00,000

SHRI LAKSHMI ASSOCIATES

Mar-19
14,00,000

FOREVER EXIM INDIA PUT. LTD.
Mar-19
19,00,000

JAIN CEMENT UDYOG

Mar-19
12,00,000

JAIN CEMENT UDYOG

Mar-19
15,00,000

MAHAVEER ASSOCIATES

Mar-19
17,90,000

FOREVER EXIM INDIA PVT. LTD.
Mar-19

P a g e | 28
DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

15,00,000

SHRI LAKSHMI ASSOCIATES

Mar-19
12,00,000

JAIN CEMENT UDYOG

Mar-19
10,00,000

MAHAVEER ASSOCIATES

Mar-19
21,00,000

SHRI LAKSHMI ASSOCIATES

Mar-19
10,00,000

FOREVER EXIM INDIA PVT. LTD.
Mar-19
15,00,000

JAIN CEMENT UDYOG

Mar-19
10,00,000

MAHAVEER ASSOCIATES

Mar-19
15,00,000

SHRI LAKSHMI ASSOCIATES

Mar-19
30,00,000

FOREVER EXIM INDIA PVT. LTD.
Mar-19
35,00,000

JAIN CEMENT UDYOG

Mar-19
37,00,000

MAHAVEER ASSOCIATES

Mar-19
40,00,000

SHRI LAKSHMI ASSOCIATES

Mar-19
55,00,000

FOREVER EXIM INDIA PT. LTD:
Mar-19
45,00,000

JAIN CEMENT UDYOG

Mar-19
60,00,000

MAHAVEER ASSOCIATES

Mar-19
40,00,000

SHRI LAKSHMI ASSOCIATES

Mar-19
72,00,000

FOREVER EXIM INDIA PUT LTD.
Mar-19
78,00,000

JAIN CEMENT UDYOG

Mar-19
74,00,000

MAHAVEER ASSOCIATES

Mar-19

P a g e | 29
DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

76,00,000

SHRI LAKSHMI ASSOCIATES

Mar-19
46,00,000

FOREVER EXIM INDIVI-LTD:

Mar-19
48,00,000

JAIN CEMENT UDYOG

Mar 19
54,00,000

MAHAVEER ASSOCIATES

Mar-19
52,00,000

SHRI LAKSHMI ASSOCIATES

Мar-19

5.

2 Apart thereof Learned CIT(A) noted from impugned order of assessment that dates of labels on cash bundles found at the assessee’s premises pertains to financial year 2018-19 relevant to assessment year 2019-20. In view of these facts Learned CIT(A) has deleted the addition by holding as under:

“8.9 On perusal above two tables and the labels on cash bundles as cited by the AO in the assessment orders, it is observed that the appellant has made RTGS payments to the entry providing entities in FY
2018-19 amounting to Rs. 47,63,99,180/ - and generated cash. The cash found at the premise also have date labels pertaining to F.Y 2018-19
indicating that the cash was withdrawn from the bank in the FY 2018-
19. The appellant has pointed out that out of 76 bundles which have been quoted by the Assessing Officer in the order, 49 bundles, pertained to FY 2018-19 only. It is further noted that dates in 19 bundles pertain to March, 2019. In these circumstances, it cannot be said that the cash found at the premises corresponded to RTGS made in AY 2020-21 and 2021-22 only and none of the cash pertained to AY 2019-20. The decision of AO limiting the benefits of cash only to RTGS made on or after 01.04.2019 appears to be without any logic and against the evidences referred by himself in the assessment order. I find no pliable reasons to uphold the cutoff date of 01.04.2019 adopted by the AO, when evidences brought on record by the AO show that the cash generated period prior to 01.04.2019 was also available at the premise. Accordingly,
I find that the source of excess cash of Rs. 12,70,19,059/- worked out by the AO stands explained by the cash generated by the appellant from P a g e | 30
DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22)

RTGS payments made in AY 2019. Therefore addition made by the AO is held to be unsustainable and is deleted.”

6
Having regard to the aforesaid facts, we are of the opinion that it is not in dispute that the assessee was engaged in activities of incurring bogus expenses through entities controlled by one Sh. Sanjay Jain, whereby assessee firstly made RTGS to said entities in lieu of bogus bills and thereafter received cash back after deduction of commission by those entities. Learned AO, for source of cash found during the course of search amounting to Rs. 60,98,07,600, has accepted the generation of cash through bogus billing for assessment year 2020-21 and 2021-22
however has not granted the benefit of cash generated during the assessment year 2019-20. Learned CIT(A) on perusal of order of assessment for assessment year 2019-20, having regard to identical activities generating cash, surrender by reversing the cash purchases for sum of Rs. 93,55,94,161/- for which RTGS of Rs. 47,63,99,180/- was made to entities controlled by Shri Sanjay Jain, has accepted the contention of the appellant that remaining cash aggregating to Rs.
12,70,19,059/- pertains to assessment year 2019-20 and has deleted the addition made by Learned AO. To fortified his decision, Learned CIT(A) further relied upon finding from impugned order of assessment that even dates of labels on some cash bundles found at the assessee’s premises to financial year 2018-19 relevant to assessment year 2019-20. In view of these facts and circumstances we find the order of learned CIT(A) is just and proper, so as not to warrant inference, more particularly once bogus purchases has already been reversed by assessee itself in return of income and has been accepted by the Learned Assessing Officer. Thus,

P a g e | 31
DCIT Vs. Girdhari Lal Construction Pvt. Ltd. (AY: 2021-22) this appeal filed by the revenue is found to be devoid of any merit and thus, dismissed.

7.

The appeal of the revenue is dismissed.

Order pronounced in the open court on 07.11.2025 (Naveen Chandra) (Madhumita Roy)
ACCOUNTANT MEMBER
JUDICIAL MEMBER
Dated 07.11.2025

Rohit, Sr. PS

DCIT, DELHI vs GIRDHARI LAL CONSTRUCTION PVT. LTD., PUNJAB | BharatTax