Amber Trade & Consulting Vs ITO (ITAT Delhi)
The ITAT Delhi disposed of three connected appeals for Assessment Years 2020-21, 2021-22 and 2022-23 by a common order. The principal dispute concerned the validity of an addition under Section 69 of the Income-tax Act, 1961, based on information obtained during a search conducted on the Omaxe Group. The Tribunal treated Assessment Year 2020-21 as the lead case.
The assessee, a partnership firm engaged in consultancy services, had filed its return declaring income of ₹77,74,990. Based on information received from the Investigation Wing following a search under Section 132 on the Omaxe Group, the Assessing Officer reopened the assessment under Section 147 on 21.03.2024 and completed the reassessment by making an addition of ₹35,04,000 as unexplained investment under Section 69.
According to the material relied upon by the Revenue, the search on the Omaxe Group resulted in seizure of “MAIN REPORT” Excel files allegedly recording unaccounted cash transactions. The investigation concluded that the files related to Omaxe Group companies, contained only unaccounted cash transactions, that transaction dates before 01.08.2018 had been backdated by ten years, and that the figures recorded were suppressed by a factor of 100. The Assessing Officer also relied on statements recorded during the search from Omaxe Group personnel and on comparisons between the Excel data and ERP records to conclude that the Excel files reflected actual cash transactions. Based on one entry in the Excel sheet, the Assessing Officer alleged that the assessee had paid ₹35,04,000 in cash towards purchase of a property from an Omaxe Group entity. The assessee denied making any cash payment, but the addition was nevertheless made and subsequently sustained by the Commissioner (Appeals).
