Case Number: ITA 5873/DEL/2019
Appellant: Sangeeta Ajay Aggarwal, New Delhi
Respondent: ITO WARD – 13(2), New Delhi
Assessment Year: 2013-14
Case Filed On: 2019-07-05
Order Type: Final Tribunal Order
Date of Order: 2022-08-30
Pronounced On: 2022-08-30
Summary:
The case of Sangeeta Ajay Aggarwal vs ITO, New Delhi pertains to the addition of unexplained cash credit under Section 68 of the Income Tax Act, 1961. The appellant, Mrs. Sangeeta Ajay Aggarwal, contested the addition made by the Assessing Officer (AO) and upheld by the Commissioner of Income Tax (Appeals)-5, New Delhi [CIT(A)], for the assessment year 2013-14. The case revolves around the long-term capital gain on the sale of shares and the presumption of commission payment.
Background:
The appellant sold shares on a recognized stock exchange, claiming the long-term capital gain of Rs. 1,40,34,693/- was exempt under Section 10(38) of the Income Tax Act. However, the AO treated this as unexplained cash credit under Section 68 and made an addition to the appellant’s income. Additionally, the AO presumed that the appellant paid a commission of Rs. 1,40,350/- without any evidence, further adding this amount to the taxable income.
Grounds of Appeal:
Tribunal Proceedings:
During the hearing, no one appeared on behalf of the appellant. However, a written communication from the appellant indicated that she opted to settle the appeal under the Vivad se Vishwas Scheme, 2020 (VSVS). The Designated Authority issued Form-5 under VSVS, and the Senior Departmental Representative (Sr. DR) submitted that the appeal should be treated as withdrawn and dismissed.
The tribunal acknowledged the letter and Form-5, concluding that the appeal had become infructuous due to the settlement under VSVS. The tribunal dismissed the appeal but clarified that if the disputes were not settled under VSVS, the appellant could approach the tribunal for restoration of the appeal.
Conclusion:
In conclusion, the tribunal dismissed the appeal of Mrs. Sangeeta Ajay Aggarwal as infructuous due to the settlement under VSVS. This case highlights the importance of procedural compliance and the benefits of dispute resolution schemes in tax matters.
Order Pronouncement:
Order was pronounced in the open court on 25.08.2022, and the written order was signed on 30.08.2022.
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(KUL BHARAT)
JUDICIAL MEMBER
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(ANADEE NATH MISSHRA)
ACCOUNTANT MEMBER
Sangeeta Ajay Aggarwal vs ITO, New Delhi – Case Filed Due to Unexplained Cash Credit
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