DCIT Vs Dinesh Lakhmichand Rohira (ITAT Mumbai)
Income Tax Appellate Tribunal (ITAT) Mumbai bench has dismissed an appeal filed by the Deputy Commissioner of Income Tax (DCIT) challenging an order of the Commissioner of Income Tax (Appeals) [CIT(A)] which had deleted an addition of Rs 1,96,00,000 made in the case of Dinesh Lakhmichand Rohira for Assessment Year 2015-16.
The dispute centered on an addition made by the Assessing Officer (AO) under Section 69A of the Income Tax Act, 1961, treating the amount as unexplained money. This action followed the reopening of the assessment based on information unearthed during a search operation conducted on the Wadhwa Group. The information suggested that the assessee, Mr. Rohira, had extended a cash loan of Rs. 1,75,00,000 to the Wadhwa Group and received cash interest of Rs. 21,00,000.
The assessment was reopened under Section 148 of the Act after information was received from the DCIT Central Circle, Mumbai, following the search on the Wadhwa Group on December 16, 2015. The basis for the addition by the AO was primarily a statement recorded under Section 132(4) of the Act from Shri Arun Nagar, identified as a key person of the Wadhwa Group, and submissions made by the Wadhwa Group before the Income Tax Settlement Commission (ITSC). These submissions allegedly included details of cash transactions and identified the assessee as a party who had provided cash loans.
