Date of Order: February 17, 2023
Case Number: ITA 2820/DEL/2022
Assessment Year: 2019-20
This case involves an appeal filed by Satya Prakash Goyal, Delhi, challenging the order of the DCIT, Central Circle-31, Delhi, which added an amount of Rs.20,40,000 under Section 69A read with Section 115BBE of the Income Tax Act, 1961, for the assessment year 2019-20.
The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘SMC’, consisting of Judicial Member Shri Saktijit Dey, reviewed the case. The appellant filed his return of income for the assessment year under dispute on September 27, 2019, declaring an income of Rs.18,60,000. A search and seizure operation under Section 132 of the Act was conducted on October 31, 2018, in the business premises of M/s. Fakir Chand Lockers (P) Ltd., where a locker in the appellant’s name was found containing cash amounting to Rs.20,40,000.
In a statement recorded under Section 132(4) of the Act, the appellant explained that Rs.18,10,000 was from the sale of jute bags, and Rs.2,30,000 was from past savings. However, the Assessing Officer (AO) was not satisfied with the explanation and treated the entire amount as unexplained money under Section 69A, adding it to the appellant’s income.
The ITAT observed that the appellant had provided a list of persons to whom the jute bags were sold, but the AO did not conduct any further inquiry to verify the claim. The tribunal found lapses on both sides, as the appellant failed to furnish complete details, and the AO failed to conduct a proper inquiry. Therefore, the tribunal remanded the case back to the AO for fresh adjudication after conducting the necessary inquiry and providing the appellant a reasonable opportunity to present fresh evidence.
This case underscores the importance of conducting thorough inquiries and providing taxpayers with fair opportunities to substantiate their claims. The tribunal’s decision to remand the case ensures procedural fairness and adherence to the principles of natural justice.
Order pronounced in the open court on February 17, 2023.
Judicial Member: Shri Saktijit Dey
Assessee Representation: Shri Akshat Jain, CA
Department Representation: Shri Anil Kumar Sharma, Sr. DR
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