GAURAV MALHOTRA,DELHI vs. ITO WARD 58(3), DELHI

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ITA 5121/DEL/2025Status: DisposedITAT Delhi07 October 2025AY 2019-20Bench: Sh. Satbeer Singh Godara (Judicial Member)2 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal observed that the material on record did not indicate that the impugned payments were made by the assessee to M/s Omaxe Group in the relevant previous year, beyond the sum of Rs. 8,80,000/-. Citing Section 292C of the Act, the tribunal held that seized documents carry a presumption of correctness, which in this case, worked against the department. The addition was deleted to the extent of Rs. 8,80,000/-.

What were the facts?

The assessee appealed against an assessment order that held him liable for cash payments totaling Rs. 9,73,600/- to M/s Omaxe Group. The lower authorities upheld this addition. The tribunal noted a receipt for Rs. 8,80,000/- issued by M/s Omaxe Group dated 19.02.2011 in the name of the assessee's father.

What were the issues?

Whether the cash payments made by the assessee to M/s Omaxe Group were proved beyond the amount for which receipt was produced and whether the presumption of correctness of seized documents under Section 292C applied against the department.

Which sections of the Income-tax Act were involved?

Section 147,Section 292C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

For Appellant: Adv. &, Ms. Monalisa Maity, Adv
For Respondent: Ms. Ambika Agarwal, Sr. DR
Hearing: 07.10.2025Pronounced: 07.10.2025

Asstt. Year : 2019-20 Gaurav Malhotra, Vs Income Tax Officer, KG-1, Hans Apartment, Arjun Nagar Ward-58(3), New Delhi-110032 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. ANRPM4620Q Assessee by: Sh. Ruchesh Sinha, Adv. & Ms. Monalisa Maity, Adv. Revenue by : Ms. Ambika Agarwal, Sr. DR Date of Hearing: 07.10.2025 Date of Pronouncement: 07.10.2025 ORDER This assessee’s appeal for Assessment Year 2019-20, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2025-26/107834435 (1) dated 10.07.2025, in proceedings u/s 147 of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

It emerges during the course of hearing that assessee/appellant is aggrieved against both the learned lower authorities’ action holding him to have made cash payments totaling to Rs.9,73,600/- to M/s Omaxe Group, in assessment order dated 23.03.2024 as upheld in the lower appellate discussion.

4.

That being the case, the tribunal’s attention is invited to page 124 in the paper book indicating cash payments receipt Gaurav Malhotra issued by M/s Omaxe Group to the tune of Rs.8,80,000/- dated 19.02.2011 in the name of assessee’s father Sh. V. K. Malhotra. There is again no dispute that even going by relevant tangible material at pages 5, 6 and 7 of the paper book, there is no indication that the impugned payments had been made by the assessee to M/s Omaxe Group in the relevant previous year over and above the foregoing sum of Rs.8,80,000/-. Be that as it may, the tribunal’s hereby quotes section 292C of the Act that contents of such seized documents indeed carry presumption of correctness which goes against the department to this effect as well. The impugned addition of Rs.9,73,600/- is deleted to the extent of Rs.8,80,000/- in very terms therefore. Necessary computation shall follow as per law.

5.

No other ground or arguments has been pressed during the course of hearing.

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