Case Number: ITA 1123/DEL/2021
Appellant: Shashi Yadav, Noida
Respondent: DCIT, Central Circle, Ghaziabad
Assessment Year: 2018-19
Order Type: Final Tribunal Order
Date of Order: October 10, 2022
The case involves an appeal by Shashi Yadav against the Deputy Commissioner of Income Tax (DCIT), Central Circle, Ghaziabad, concerning the assessment year 2018-19. The primary issue pertains to the addition of Rs. 1,09,87,004 as unexplained investment under Section 69 of the Income Tax Act, 1961, based on documents found during a search operation at a third party’s premises.
A search and seizure operation under Section 132 of the Income Tax Act was conducted on November 10, 2017, at the premises of Shashi Yadav and associated parties, including the Rajeshwar Singh Yadav Group. During the search at the premises of B.B. Goel, certain documents were seized (Annexure LP-1, Pages 70 and 71), indicating investments in various properties.
The Assessing Officer (AO) noted that the seized documents reflected investments in Shop Nos. 387, 382, and 383, and a significant discrepancy was found between the amount recorded in the documents (Rs. 1,73,84,500) and the amount declared by the appellant (Rs. 63,67,496). The AO treated the difference as unexplained investment.
The appellant contended that:
The Revenue argued that:
The Tribunal considered the submissions and evidence presented by both parties and made the following observations:
Based on the above observations, the Tribunal concluded that the addition of Rs. 1,09,87,004 as unexplained investment under Section 69 was unsustainable. The appeal was allowed, and the addition was deleted.
This case highlights the importance of substantive evidence in making additions under Section 69 and reinforces the principles of natural justice in tax proceedings.
Order: The appeal of Shashi Yadav is allowed, and the addition made by the AO is deleted.
Shashi Yadav, Noida vs. DCIT, CC, Ghaziabad – ITA 1123/DEL/2021
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