Case Law Details
Sushil Singla Vs DCIT (ITAT Delhi)
Introduction: The case of Sushil Singla vs. DCIT is centered around an appeal filed with the Income Tax Appellate Tribunal (ITAT) in Delhi. The appeal pertains to the assessment years 2014-15, 2015-16, and 2016-17 and challenges the order of the Commissioner of Income Tax (Appeals) (CIT(A)) dated 22.03.2023. The primary issue in question is whether the addition of cash deposits in the bank account, totaling Rs. 45,000, Rs. 2,00,000, and Rs. 1,50,000 for the respective assessment years, is justified in the absence of incriminating material related to unabated assessments.
Detailed Analysis:
1. Background: The assessee had originally filed income tax returns for the assessment years 2014-15, 2015-16, and 2016-17. Subsequently, a search and seizure operation was conducted at the assessee’s premises on 06.06.2018. At the time of the search, no proceedings for the mentioned assessment years were pending. As a result, these assessments were considered unabated.
2. Unabated Assessment Rules: Section 153A of the Income Tax Act, 1961 deals with unabated assessments. It states that an assessment that has already been completed and is no longer pending can only be reopened during a search operation if there is incriminating material found during the search.
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