Subhash Chander Gupta Vs ITO (ITAT Chandigarh)
The ITAT Chandigarh allowed both appeals filed by the assessee against separate orders of the CIT(A) dated 28.06.2024 for A.Y. 2011-12. The first appeal challenged reopening under Section 148, addition of ₹13 crore as undisclosed income and other related issues. The second appeal challenged penalty under Section 271D for alleged acceptance of ₹13 crore in cash in violation of Section 269SS.
The assessee was an individual and had been a trustee of Shri Krishna Educational Trust (SKET), Kurukshetra. A search under Section 132 was conducted on 26.04.2012 at premises connected with Dev Bhoomi Institute of Technology Group, Shri Krishna Educational Trust and its Chairman, Shri Sanjay Bansal. During the search, a loose paper was seized. The Assessing Officer relied on the document and information received from the Investigation Wing to form the belief that the assessee had received ₹13 crore from Shri Sanjay Bansal in connection with the transfer of management and control of the trust. The assessee had originally declared total income of ₹1,58,670 for A.Y. 2011-12.
The AO issued notice under Section 148 and subsequently framed the assessment under Sections 148/143(3), making an addition of ₹13 crore. The assessee contended that since the material relied upon was seized during a search concerning another person and allegedly pertained to the assessee, proceedings were required to be initiated under Section 153C rather than Section 148. The assessee relied upon the amended Section 153C and the Supreme Court judgment in ITO vs. Vikram Sujit Kumar Bhatia, reported in [2023] 149 com 123 (SC).
