Case Number: ITA 1121/DEL/2021
Appellant: Poonam Yadav, Noida
Respondent: DCIT, CC, Ghaziabad
Assessment Year: 2018-19
Case Filed on: 2021-09-14
Order Type: Final Tribunal Order
Date of Order: 2022-10-10
Pronounced on: 2022-10-10
The case of Poonam Yadav vs DCIT, CC, Ghaziabad revolves around the assessment year 2018-19 and involves significant legal discussions on unexplained investments under Section 69 of the Income Tax Act, 1961. The appellant, Poonam Yadav, challenged the assessment order passed by the Deputy Commissioner of Income Tax (DCIT), Central Circle, Ghaziabad, which included additions made on account of alleged unexplained investments.
A search and seizure operation under Section 132 of the Income Tax Act was conducted at the premises of various individuals, including the appellant’s family members and associates. During the course of the search at the premises of Shri B.B. Goel, certain documents were found that allegedly indicated undisclosed investments by Poonam Yadav in properties located in Indirapuram, Ghaziabad. The Assessing Officer (AO) made an addition of Rs.1,09,87,004/- to the appellant’s income, treating it as unexplained investment.
Poonam Yadav contested the validity of the assessment on several grounds:
The DCIT argued that the document found at the premises of Shri B.B. Goel clearly indicated the name of Poonam Yadav and the amount invested in the property. The failure of the appellant to provide satisfactory explanations about the document and the source of investment justified the addition made by the AO.
The Income Tax Appellate Tribunal (ITAT) observed the following:
Based on the above observations, the Tribunal directed the AO to delete the addition of Rs.1,09,87,004/- made under Section 69 of the Income Tax Act, 1961. The appeal of Poonam Yadav was thus allowed.
This case underscores the importance of corroborative evidence in making additions based on documents found during search operations and highlights the necessity of adhering to the principles of natural justice in tax assessments.
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