DCIT Vs Rajan Kumar (ITAT Delhi)
The ITAT Delhi dismissed the Revenue’s appeal and allowed the assessee’s cross-objection in a case involving alleged accommodation entries of ₹1.83 crore. The Tribunal upheld the NFAC’s finding that section 69A could not be invoked since the assessee was never found to be owner or in possession of any unaccounted money or valuable article; mere reliance on investigation statements was insufficient. It was also noted that the assessee had already been assessed earlier by estimating profit @8% after rejection of books, and entire entry amount could not again be taxed.
On legal grounds, the Tribunal held that reassessment u/s 147 was invalid as it was initiated merely on Investigation Wing report without independent application of mind and beyond four years despite full disclosure in original assessment u/s 143(3). Accordingly, reopening was quashed, deletion of ₹1.83 crore addition was confirmed, Revenue’s appeal was dismissed, and assessee’s cross-objection was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the Revenue is preferred against the order dated 13-11.2024 of the National Faceless Appeal Centre (NFAC) Delhi (in short “the Ld. NFAC)) relevant to assessment year 2012-13. The assessee also filed the cross objection for the Assessment Year 2012-13.
