Case Number: ITA 5579/DEL/2019
Appellant: Gurcharan Singh, New Delhi
Respondent: Assistant Commissioner of Income Tax, Circle-47(1), New Delhi
Assessment Year: 2009-10
Result: Appeal Dismissed
Case Filed on: 2019-06-26
Order Type: Final Tribunal Order
Date of Order: 2023-08-30
Pronounced on: 2023-08-30
The case involves an appeal filed by Gurcharan Singh against the order passed by the Assistant Commissioner of Income Tax (ACIT), Circle-47(1), New Delhi, for the assessment year 2009-10. The primary issue in this appeal was the reopening of the assessment under Section 147/148 of the Income Tax Act, 1961, based on the receipt of information regarding large cash transactions in the bank account of the appellant.
The appellant, Gurcharan Singh, contested the reopening of the assessment by the Assessing Officer (AO) on several grounds. The appeal was filed against the order of the Commissioner of Income Tax (Appeals)-16, New Delhi, dated 8th March 2019. The appellant argued that the reopening of the assessment was not justified and that the AO had erred in making additions to the income based on unexplained cash credits.
The appellant raised the following grounds of appeal:
The appeal was heard before the Income Tax Appellate Tribunal (Delhi Bench “H”) in New Delhi on 30th August 2023. The bench comprised Shri Narendra Kumar Billaiya, Accountant Member, and Shri Kul Bharat, Judicial Member.
The appellant, Gurcharan Singh, did not attend the proceedings, and the appeal was heard ex parte. The respondent, represented by Shri Amit Katoch, Sr. DR, supported the orders of the authorities below.
The appellant’s grounds of appeal primarily focused on challenging the legality of the reopening of the assessment and the additions made by the AO. The appellant argued that the reopening was based on a difference of opinion, lacked a live nexus between the reasons recorded and the belief formed by the AO, and was initiated without valid approval under Section 151 of the Act.
The respondent argued that the reopening of the assessment was justified based on the information received regarding large cash transactions in the appellant’s bank accounts. The respondent also argued that the appellant failed to provide necessary confirmations from the parties involved, M/s Varun Impex and M/s Meet Exports, to substantiate the cash receipts claimed as sales proceeds.
The Tribunal considered the details and arguments presented by both parties. The Tribunal noted that the appellant failed to produce the parties involved (M/s Varun Impex and M/s Meet Exports) or their books of accounts to prove the genuineness of the transactions. The appellant also failed to provide current addresses for the parties, resulting in the notices sent by the Registry being returned.
The Tribunal found that the AO had conducted independent inquiries to verify the transactions, and the inquiries revealed that the entities (M/s Varun Impex and M/s Meet Exports) did not exist at the addresses provided. The Tribunal held that the AO was justified in making additions on account of unexplained cash credits under Section 68 of the Act.
In conclusion, the Tribunal affirmed the findings of the CIT(A) and dismissed the grounds of appeal raised by the appellant. The appeal of the appellant, Gurcharan Singh, for the assessment year 2009-10, was dismissed.
The Tribunal dismissed the appeal filed by Gurcharan Singh against the order of the ACIT, Circle-47(1), New Delhi. The Tribunal upheld the addition of Rs. 24,06,661/- on account of cash received from M/s Varun Impex and Rs. 2,16,14,618/- on account of cash received from M/s Meet Exports as unexplained cash credits. The Tribunal found that the reopening of the assessment under Section 147/148 of the Income Tax Act was justified based on the information received and the independent inquiries conducted by the AO.
Members Present:
Shri Narendra Kumar Billaiya, Accountant Member
Shri Kul Bharat, Judicial Member
Document Reference:
Copy forwarded to:
1. Appellant: Gurcharan Singh, G-131, Vikaspuri, Delhi-110018
2. Respondent: ACIT, Circle-47(1), New Delhi
3. CIT
4. CIT(A)
5. DR: ITAT
Assistant Registrar, ITAT, New Delhi
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