Income Tax Appellate Tribunal Dismisses Appeal in ITA No. 1087/DEL/2022 for A.Y. 2016-17

Income Tax Appellate Tribunal Dismisses Appeal in ITA No. 1087/DEL/2022 for A.Y. 2016-17

In a significant judgment delivered by the Income Tax Appellate Tribunal, Delhi Bench ‘H’, a critical appeal filed by the Department of Central Circle-32, Delhi against Shri Vinod Kumar Bajaj, Delhi, bearing case number ITA 1087/DEL/2022 for the assessment year 2016-17, was dismissed. This case, presided over by Judicial Member Shri Kul Bharat and Accountant Member Shri M. Balaganesh, highlights crucial aspects of income assessment and the interpretation of undisclosed income.

Background of the Case

The appeal was filed by the revenue against the decision of the ld CIT(A) -30, New Delhi, which had arisen from the order of assessment passed under section 153 read with section 143(3) of the Income Tax Act, 1961, dated 17.12.2019 by the Assessing Officer, DCIT, Central Circle-32, New Delhi. The primary contention was the deletion of an addition of Rs. 6,61,50,000/- attributed to undisclosed income from election consultancy services by the assessee.

Evidence and Proceedings

During the proceedings, substantial evidence, including seized e-mails and the assessee’s filed income return, was examined. A search and seizure operation had revealed e-mails suggesting services related to election consultancy. However, the assessee contended that the return of income originally filed should stand and that no election consultancy services were rendered.

Judgment and Rationale

The Tribunal, after careful deliberation on the submissions and evidence presented, held that the addition was based on surmises and conjectures without any concrete evidence to substantiate the rendering of consultancy services as claimed by the AO. It was observed that the internal emails, which formed the basis of the AO’s allegations, did not conclusively prove that services were rendered and income was earned from the said consultancy.

The tribunal emphasized the importance of concrete evidence over presumptions and appreciated the ld CIT(A)’s decision to delete the addition. This case underscores the tribunal’s approach towards matters of undisclosed income and highlights the need for the revenue to establish its case with clear and concrete evidence.

Conclusion

The Tribunal’s decision to dismiss the revenue’s appeal and uphold the ld CIT(A)’s deletion of the addition marks a pivotal moment in cases of undisclosed income assessment. It sends a clear message about the standards of proof required in matters of income from undisclosed sources. The appeal dismissal and the detailed judgment serve as a significant precedent for similar cases in the future, delineating a firm stance against baseless additions without substantial evidence.

Case Details

• Case Number: ITA 1087/DEL/2022
• Appellant: DCIT Central Circle-32, Delhi
• Respondent: Vinod Kumar Bajaj, Delhi
• Assessment Year: 2016-17
• Result: Dismissed

Income Tax Appellate Tribunal Dismisses Appeal in ITA No. 1087/DEL/2022 for A.Y. 2016-17