Case Law Details
PCIT Vs Nirmal Kumar Minda (Delhi High Court)
Introduction: The recent case of PCIT vs Nirmal Kumar Minda, revolving around Assessment Year 2018-19, has garnered attention for the Tribunal’s decision to delete additions made by the Assessing Officer. The appeal, brought by the revenue, challenges the Tribunal’s order and focuses on unexplained sources of funds related to jewellery, paintings, and wrist watches discovered during a search operation against the Minda Group.
Detailed Analysis: The search and seizure operation conducted under Section 132 of the Income Tax Act in 2017 revealed articles such as jewellery, paintings, and wrist watches at the residence of the respondent/assessee, a part of the Minda Group. The revenue added cumulative amounts to the assessed income, contending that the source of money for these articles was unexplained.
The Commissioner of Income Tax (Appeals) partially allowed the appeal filed by the revenue, leading to cross-appeals and the subsequent Tribunal order dated 03.05.2023. The Tribunal allowed the appeal of the respondent/assessee and dismissed the appeal of the revenue.
The appellant/revenue, represented by Mr. Sanjay Kumar, argued that the deletions of additions for jewellery, paintings, and wrist watches were erroneous. The Tribunal had considered detailed valuations and explanations provided by the respondent/assessee in response to the Assessing Officer’s additions.
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