ACIT Vs Navneet Kumar Sureka (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, decided three connected appeals filed by the Revenue against separate orders passed by the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2013-14. Since common issues were involved, the Tribunal disposed of all appeals through a common order. The principal disputes related to additions made under Sections 69A and 68 of the Income Tax Act concerning alleged unexplained cash transactions and share sale proceeds.
In ITA No. 5573/DEL/2016, the Revenue challenged the deletion of an addition of Rs.1 crore made under Section 69A. During search and survey operations conducted at the premises of Mauria Udyog Ltd., incriminating documents relating to transactions with the Amrapali Group were seized. One Excel file extracted from the residence of Shri Rohtash Kumar allegedly reflected cash transactions amounting to Rs.9 crore between the Mauria/Bihariji Group and the Amrapali Group. In his statement recorded under Section 132(4), Shri Rohtash Kumar admitted that the cash transactions reflected in the document were received or paid by the group entities and stated that only Shri Navneet Sureka could comment on their accounting treatment.
Relying on the statement and the seized Excel file, the Assessing Officer concluded that the provisions of Section 69A applied and added Rs.1 crore as unexplained income. The CIT(A), however, deleted the addition by relying upon an earlier appellate order in the case of M/s Bihariji Ispat Udyog Ltd.
