Rakesh Aggarwal Vs DCIT (ITAT Delhi)
ITAT Deletes Addition on Alleged Bonus Income Due to Absence of Accrual or Receipt; Search-Based Addition Quashed as No Evidence Proved Legal Right to Receive Commission Income; ITAT Grants Relief on Seized Cash After Accepting Evidence Supporting Land Purchase Transactions; ITAT Holds Hypothetical Bonus Calculations Not Taxable Without Evidence of Actual Accrual.
The Income Tax Appellate Tribunal (ITAT), Delhi decided cross appeals filed by the assessee and the Revenue against the order of the Commissioner of Income Tax (Appeals)-23, Delhi relating to Assessment Year 2021-22. The dispute arose from additions made during assessment proceedings following a search and seizure operation conducted on the Dalmia Landmark Group on 17.03.2021, during which the residential premises of the assessee were also covered under Section 132 of the Income-tax Act.
The assessee had filed a return declaring income of Rs.1,37,84,080/-. However, the Assessing Officer completed assessment under Section 143(3) on 31.03.2023 assessing total income at Rs.6,34,84,080/-. Additions of Rs.3,17,00,000/- and Rs.1,80,00,000/- were made under Section 69A of the Act.
The addition of Rs.3.17 crore related to alleged bonus and commission income. During the search, certain sheets titled “Aexited” and “B. Exited & Remitted Offshore” were seized from the assessee’s residence. According to the Assessing Officer, these sheets reflected workings of interest and commission receivable by the assessee from various entities connected with the Dalmia Group. The Assessing Officer concluded that the assessee was entitled to receive bonus and commission apart from salary and treated the amount as taxable income on due basis.
