DCIT Vs Dolly Kumar (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, dismissed the Revenue’s appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] deleting an addition of ₹1,38,99,420 made under Section 69A of the Income Tax Act, 1961. The assessee’s cross objection was dismissed as infructuous following the dismissal of the Revenue’s appeal.
The assessee had originally filed her return of income for Assessment Year 2022-23 declaring total income of ₹11,99,75,650. A search and seizure operation under Section 132 was conducted on 20.09.2023. Subsequently, a notice under Section 148 was issued, and the assessee filed a return declaring the same income. The Assessing Officer (AO) made an addition of ₹1,38,99,420 under Section 69A, treating the amount as unexplained money allegedly received in cash from vendors against excess payments arising from over-invoicing. Penalty proceedings under Section 271AAC were also initiated.
The Revenue challenged the CIT(A)’s order, contending that the company had generated unaccounted cash through over-invoicing and that digital records, Excel sheets, and statements recorded under Section 132(4) established that the cash was handed over to the assessee. It argued that such receipt amounted to ownership and possession under Section 69A, and that the CIT(A) erred in disregarding digital evidence, vendor statements, and the evidentiary value of statements recorded during the search.
