DCIT Vs Ajit Singh Om Parkash Pvt. Ltd (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi has set aside an order by the National Faceless Appeal Centre (NFAC) that deleted an addition of ₹2,32,39,792/- made under Section 68 of the Income Tax Act, 1961, in the case of DCIT vs. Ajit Singh Om Parkash Pvt. Ltd. The Tribunal’s decision, pronounced on June 27, 2025, for Assessment Year 2017-18, centers on a violation of Rule 46A of the Income Tax Rules, which pertains to the production of additional evidence before the Commissioner of Income Tax (Appeals) [CIT(A)].
The revenue’s appeal focused on the CIT(A)’s deletion of the aforementioned addition, arguing that the CIT(A) had considered new details and evidence that were not presented during the initial assessment proceedings. The Assessing Officer (AO) had initially made the addition due to doubts regarding the genuineness and creditworthiness of unsecured loans received by the assessee. The AO noted that the lending parties had received almost equivalent amounts from seemingly unrelated parties, leading to suspicion about the transactions.
During the appellate proceedings before the CIT(A), the assessee submitted additional details and evidence that had not been made available to the AO. The revenue contended that this constituted a clear violation of Rule 46A. Rule 46A mandates that the CIT(A) must provide the Assessing Officer with a fair opportunity to be heard when considering any evidence filed during the appellate proceedings that was not previously before the AO.
