DCIT Vs Raghav Bahl (ITAT Delhi)
Additional Evidence Allowed, Salary Refund Accepted & Foreign Property Source Explained: Delhi ITAT Dismisses Revenue Appeals
Delhi ITAT, Delhi Bench ‘A’, in DCIT Vs Raghav Bahl (ITA Nos.1639 & 1640/Del/2023; AYs 2012-13 & 2020-21; order dated 19-12-2025), dismissed both Revenue appeals, affirming the detailed relief granted by the Ld. CIT(A).
For AY 2012-13, the Tribunal upheld admission of additional evidence u/r 46A to establish cost & period of acquisition of shares sold during the year. The CIT(A) had meticulously examined tranche-wise acquisition of TV18 group shares, corporate actions (demerger & swap ratio), and indexation under sections 49(2C), 49(2D) & Explanation 1(g) to section 2(42A), allowing LTCL of ₹9.06 crore while sustaining STCG of only ₹7.96 lakh where evidence was lacking. The Tribunal noted that the AO, even in remand, did not dispute the genuineness of documents, and mere non-filing before AO cannot defeat a lawful claim.
The Tribunal also upheld deletion of ₹40.32 lakh salary addition, holding that excess managerial remuneration recovered in compliance with the Companies Act & Central Government directions never accrued as income. Reliance was placed on Delhi HC in Raghunath Murti, affirming that such refunded amounts fall outside section 15.
For AY 2020-21, the Tribunal confirmed deletion of ₹26.45 crore addition u/s 69A r.w.s. 115BBE relating to a US property. It held that the property was acquired by RB Property Corporation, USA, funded by RBRK Investment Ltd., UK, which in turn was financed through explained investments of family members via CRPS issued by RB Trust (Isle of Man). Detailed fund-flow tables & bank statements (as analysed by CIT(A)) established that the assessee was only a beneficial owner for disclosure in Schedule FA, and no unexplained investment was made by him personally.
Finding no perversity in the CIT(A)’s fact-based findings, the Tribunal dismissed both Revenue appeals in toto, reinforcing that substance-backed documentation, even if filed at appellate stage, cannot be brushed aside.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned appeals are filed by the Revenue against the separate orders, both dated 06.03.2023 by Ld. Commissioner of Income Tax (A), Kanpur-4 [“Ld.CIT(A)”] in Appeal No. CIT(A)-IV/KNP/10147/2015-16 and in Appeal No. CIT(A)-IV/KNP/11159/2019-20 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment orders dated 05.03.2015 and 30.09.2022 passed u/s 143(3) of the Act pertaining to Assessment Years 2012-13 & 2020-21 respectively.
