Sanjeev Jai Narain Aeren Vs ACIT (ITAT Delhi)
CIT(A) Cannot Rubber-Stamp AO’s Order- Non-Speaking CIT(A) Order in 153C Proceedings Set Aside by ITAT Delhi
In a significant ruling, Delhi ITAT has remanded back the case of holding that CIT(A) had failed to pass a reasoned & speaking order while confirming massive additions running into more than Rs 82 crore.
Assessee , an individual, had originally filed his return of income declaring a modest figure of Rs 3.14 lakh. However, pursuant to a search conducted on the Rakesh Jain Group on 2nd November 2017, certain loose papers allegedly belonging to him were seized. On the basis of these papers, AO initiated proceedings u/s 153C for several years & , rejecting Assessee ’s objections, completed the assessment with additions aggregating to Rs 82.73 crore u/s 69A, treating them as unexplained money.
Assessee strongly contested the proceedings, arguing that unsigned & unverified loose sheets found in third party premises could not constitute incriminating material in law. He relied upon the rulings of the Hon’ble Supreme Court in Abhisar Buildwell Pvt. Ltd. (2023), Sunita Dhadda (2018) & Sunil Kumar Sharma (2024), wherein it has been categorically held that such loose papers, without corroborative evidence, cannot be relied upon to make additions. He further pleaded that the satisfaction note had not been properly recorded for each assessment year, that the legal presumption u/s 132(4A) & 292C could only apply to the person from whose custody the papers were found & that denial of cross-examination of the alleged witnesses amounted to violation of natural justice.
