Delhi Bench of Income Tax Appellate Tribunal Case
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) ruled that the manual cash book contained entries of cash withdrawals and company expenses, which were duly recorded and reconciled with its books of account. The disclosure of Rs. 50 lacs was made by the appellant in the Income Declaration Scheme, 2016, to offset the negative cash balance. Despite a search and seizure operation, no incriminating material was found on the appellant’s premises. The assessment for the relevant years had concluded before the search. Subsequently, assessment proceedings were initiated under Section 153A. The CIT(A) partially sustained the additions as benefits obtained by the director from the company. The tribunal stated that the manual cash book entries were not substantive additions, and as the assessments for the company had concluded, the same set of books could not be considered incriminating material for the appellant. The appellant’s contention against the joint assessment of related entities from a common search was also considered. The case title is Bijender Singh Lohia Versus JCIT (OSD).
Counsel For Appellant: Gaurav Jain
Counsel For Respondent: Sunita Verma