Appellant: Smt. Karina Kunjana Kapoor, Delhi – PAN: BFNPK7229C
Respondent: Deputy Commissioner of Income Tax, Central Circle-19, New Delhi
For the Assessee: Sh. Lakshay Gupta, CA & Sh. Rajat Vaishnav, Adv.
For the Revenue: Mohd. Gayasuddin Ansari, CIT(DR)
Date of Hearing: January 25, 2023
Date of Pronouncement: March 7, 2023
Per Anubhav Sharma, JM: The appeal challenges the order dated January 11, 2021, by the Commissioner of Income Tax (Appeals)-26, New Delhi, concerning the appeal arising out of the assessment order dated December 31, 2018, under sections 153A/143(3) of the Income Tax Act, 1961, passed by the ACIT, Central Circle-16, New Delhi. The case was taken up following a search and seizure operation on the Deepak Talwar Group on June 22, 2016, covering the appellant under the search operation.
The appellant declared an income of Rs. 1,52,780 for A.Y. 2015-16, whereas the assessment was set at Rs. 39,52,780 with specific additions under sections 69A and 115BBE:
The appellant contended that the cash deposits were gifts received from family and friends on occasions like birthdays and festivals, which are not taxable under section 56 of the Income Tax Act. However, the Assessing Officer (AO) deemed these explanations as afterthoughts and treated the deposits as unexplained.
In response, the appellant raised multiple grounds of appeal, arguing that the CIT(A) erred in law by not considering lawful evidence of the cash deposits and failing to recognize that no incriminating material was found to substantiate the addition. The appellant stressed that the gifts received are not taxable and that the assessment was made without any basis of incriminating material as required under section 153A.
The tribunal noted that the original return of income was accepted under section 143(1), and no notice under section 143(2) was issued before the search, suggesting that the assessment should not have been altered without new incriminating evidence. However, it was observed that the search itself allowed for a reassessment under section 153A, merging the pending assessment.
Ultimately, the tribunal upheld the additions made by the AO, concluding that the appellant failed to provide satisfactory evidence supporting the nature of the cash deposits and dismissed the appeal.
Order Pronounced in the Open Court on March 7, 2023.
Copy forwarded to: Appellant, Respondent, CIT, CIT(Appeals), DR: ITAT, Assistant Registrar, ITAT, New Delhi.
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