DCIT Vs Vikas Associates Pvt. Ltd (ITAT Delhi)
Not Year of Search but Year of Handover – Ojjus Medicare Ruling Protects Vikas Associates: Tribunal Follows Delhi HC – Entire 153C Additions in Vikas Associates Struck Down
Delhi ITAT dismissed Revenue’s appeal in the case of Vikas Associates Pvt. Ltd., upholding CIT(A)’s deletion of additions made u/s 68, u/s 69A & for alleged commission income.
Assessee filed original return on 27.09.2011 declaring nil income. Pursuant to search, notice u/s 153C was issued & return was filed on 08.12.2022 again declaring nil income. AO framed assessment u/s 153C on 01.03.2024 making total addition of ₹1,39,05,000/- comprising: ₹75,00,000/- u/s 68 (unexplained cash credits), ₹60,00,000/- u/s 69A (unexplained money) & ₹4,05,000/- as unaccounted commission @3% on alleged accommodation entries.
CIT(A) on 23.12.2024 deleted entire addition. Revenue challenged before Tribunal.
Revenue argued that CIT(A) erred in deleting additions & in interpretation of block period under u/s 153C, relying on CBDT Circular No.2/2018.
Assessee relied on Delhi High Court judgment in Pr. CIT vs. Ojjus Medicare Pvt. Ltd. (2024 SCC OnLine Del 2439), which clarified reckoning of block period u/s 153C. It was also submitted that notices issued were quashed by Delhi High Court in W.P.(C) 2088/2024 & CM APPL. 8676/2024 – Vikas Associates Pvt. Ltd. vs. ITO.
