Anil Kumar Gupta Vs ACIT (ITAT Delhi)
In the case of Anil Kumar Gupta Vs ACIT, the Income Tax Appellate Tribunal (ITAT), Delhi, allowed the assessee’s appeal relating to Assessment Year 2018-19 and held that proceedings initiated under Section 153C of the Income Tax Act were unsustainable due to defects in the satisfaction note and absence of mandatory certification under Section 65B of the Evidence Act for electronic evidence.
The assessee had originally filed a return declaring income of Rs.19.46 lakh. A search under Section 132 was conducted on 03.05.2018 in the case of Seven Seas Hospitality Pvt. Ltd. group. During the search, certain documents and electronic records allegedly relating to the assessee were found and seized from the searched entity. Based on this material, the Assessing Officer (AO) initiated proceedings under Section 153C against the assessee.
The dispute arose from the marriage function of the assessee’s daughter, which had been organized through Seven Seas Hospitality Pvt. Ltd. According to the AO, a seized electronic document contained details of estimated expenses for a marriage function allegedly held on 30.06.2017. The document reflected total estimated expenses of Rs.46.15 lakh, out of which Rs.12.15 lakh was shown as received through cheque and the balance allegedly settled in cash.
