Case Number: ITA 1806/DEL/2019
Appellant: Nany Duggal, Faridabad
Respondent: ACIT, Central Circle-4, New Delhi
Assessment Year: 2011-12
Result: 2011-12
Case Filed on: 2019-03-05
Order Type: Final Tribunal Order
Date of Order: 2021-01-19
Pronounced on: 2021-01-19
The case of Nany Duggal vs. ACIT involves the assessment for the year 2011-12. The dispute arose from the results of a search and seizure operation conducted on 29.12.2015 against the Duggal and Talwar families, leading to the scrutiny of financial transactions and bank accounts.
A comprehensive search and seizure operation was conducted against multiple individuals and entities associated with the Duggal and Talwar families, as well as the MAPSKO Group. This investigation uncovered significant financial transactions suggesting tax evasion and other irregularities.
Key findings from the operation revealed the following:
The following bank accounts showed a similar pattern of transactions:
Account Number | Account Name | Branch |
---|---|---|
419.53.1193 | Rajnish Talwar | Gurgaon |
303.53.6305 | Rajnish Talwar, Chesta Charvi | Rohini, Delhi |
358.53.3615 | Ratna Talwar | Chittaranjan Park |
419.53.1194 | Ratna Talwar | Gurgaon |
303.53.6611 | Ratna Talwar | Rohini |
303.53.9693 | Kritika Talwar | Rohini |
303.53.10682 | Chesta Talwar | Rohini |
555.53.204 | Sanjay Duggal | Faridabad |
The main legal issues revolved around the unexplained deposits in these bank accounts and the subsequent transfers and withdrawals. The Assessing Officer (AO) concluded that the funds represented unaccounted income and made significant additions to the taxable income of the individuals involved.
One of the critical issues discussed was whether the Joint Commissioner of Income Tax (JCIT) applied his mind while granting approval under section 153D. The Tribunal scrutinized the procedural aspects and noted that the JCIT must ensure due application of mind and not merely provide a mechanical approval.
The Tribunal observed inconsistencies in the statements given by the involved parties during the search and post-search inquiries. The credibility of the statements was questioned, particularly those related to the utilization of cash withdrawn from the bank accounts.
The Tribunal emphasized the need for the AO to base additions on incriminating materials found during the search. In this case, substantial materials were found that indicated the involvement of the Duggal and Talwar families in routing unaccounted money.
The Tribunal concluded that the assessments made by the AO were justified based on the available evidence. The approval process under section 153D, although questioned, was deemed to have been sufficiently met despite certain procedural concerns.
The final judgment highlighted the necessity for thorough investigations and proper documentation to ensure that assessments in search cases are grounded in concrete evidence.
This case serves as a precedent for future cases involving complex financial transactions and the importance of procedural correctness in tax assessments.
Detailed Analysis of Neeru Duggal vs ACIT: Tribunal’s Order on ITA 1806/DEL/2019
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform