This article examines the ITAT case of Atul Bansal vs ACIT, Circle-47(1), New Delhi, which dealt with the tax assessment for the year 2012-13, particularly focusing on the challenges against reassessment proceedings and an addition made under section 69C of the Income Tax Act.
Atul Bansal faced a reassessment under section 147, initiated due to alleged unexplained cash transactions noted during a search operation at Dkriish Group of companies, where documents suggested a cash payment of Rs. 94 lakhs towards a farmhouse purchase. This led to the addition of this amount as unexplained expenditure under section 69C during the reassessment.
The case was reopened based on findings from a search operation. The reassessment notice was challenged by the taxpayer, primarily contesting the validity of the reassessment and the addition of Rs. 94 lakhs as unexplained expenditure.
The ITAT, led by Shri N.K. Billaiya and Shri Laliet Kumar, held that the reassessment was based on insufficient evidence. The Tribunal noted that the alleged transactions were not substantiated with adequate proof, leading to the conclusion that the addition made under section 69C was unjustified. Therefore, they directed the deletion of the Rs. 94 lakh addition.
The decision was significant as it highlighted the importance of concrete evidence in substantiating tax claims and reassessments. The Tribunal’s ruling provided relief to Atul Bansal and set a precedent regarding the assessment of unexplained investments and expenditures.
Atul Bansal vs ACIT, Circle-47(1), New Delhi: Challenging Tax Assessment for AY 2012-13
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