Sujit Madan Vs DCIT (ITAT Delhi)
The appeal in ITA No. 3436/Del/2023 for assessment year 2016-17 before the Income Tax Appellate Tribunal (ITAT) Delhi arose from the order of the Commissioner of Income Tax (Appeals)-23, New Delhi, dated 31.10.2023, which upheld the assessment order passed under sections 147 read with 143(3) of the Income Tax Act, 1961, by the Assessing Officer (AO), DCIT, Central Circle-1, Delhi. The assessee, an individual, had filed the original return of income under section 139(1) on 21-07-2016, declaring total income of Rs. 47,08,260, which was processed under section 143(1). The assessment was later reopened under section 147 on the basis of information received through the CRIU module of the insight portal following a search and seizure under section 132 in the Dutta and Tyagi group case on 16-05-2018. The information alleged that the assessee was a beneficiary of accommodation entries involving bogus Long Term Capital Gains (LTCG) from shares of M/s Yamini Investment Company Limited, amounting to Rs. 73,99,475, which had escaped assessment.
A notice under section 148 of the Act was issued on 27-03-2021 after prior approval from the JCIT, and the assessee filed a return on 1-4-2021 while seeking reasons recorded for reopening. The AO furnished the reasons on 22-02-2022, and the assessee raised objections on 2-7-2021, which were disposed of by a separate speaking order dated 31-01-2023. The AO treated the LTCG claimed as exempt under section 10(38) as bogus and added Rs. 73,99,475, along with 3% estimated commission of Rs. 2,21,984 under section 69C as unexplained expenditure. The CIT(A) upheld these additions.
