IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No.712/Del/2019 Assessment Year: 2011-12 DCIT, Vs. Sh. Vinay Sharma, Central Circle-18, B-373, Swarnajyanti Puram, New Delhi Ghaziabad PAN: BDQPS4406L (Appellant) (Respondent)

With C.O. No.60/Del/2019 [Arising out of ITA No.712/Del/2019]

Assessment Year: 2011-12 Sh. Vinay Sharma, Vs. DCIT, B-373, Swarnajyanti Puram, Central Circle-18, Ghaziabad New Delhi PAN: BDQPS4406L (Appellant) (Respondent)

With ITA Nos.716 & 717/Del/2019 Assessment Years: 2011-12 & 2012-13 DCIT, Vs. Sh. Dheer Chand Sharma, Central Circle-18, B-373, Swarnajyanti Puram, New Delhi Ghaziabad PAN: BDLPS0502C (Appellant) (Respondent)

With C.O. Nos.64 & 65/Del/2019 [Arising out of ITA Nos.716 & 717/Del/2019]

Assessment Years: 2011-12 & 2012-13 Sh. Dheer Chand Sharma Vs. DCIT, B-373, Swarnajyanti Puram, Central Circle-18, Ghaziabad New Delhi PAN: BDLPS0502C (Appellant) (Respondent)

With Assessment Years: 2011-12 & 2012-13 DCIT, Vs. Sh. Guru Prasad Sharma, Central Circle-18, B-373, Swarnajyanti Puram, New Delhi Ghaziabad PAN: BDLPS0506G (Appellant) (Respondent)

With C.O. Nos.69 & 70/Del/2019 [Arising out of ITA Nos.721 & 722/Del/2019]

Assessment Years: 2011-12 & 2012-13 Sh. Guru Prasad Sharma, Vs. DCIT, B-373, Swarnajyanti Puram, Central Circle-18, Ghaziabad New Delhi PAN: BDLPS0506G (Appellant) (Respondent)

With ITA Nos.726 & 727/Del/2019 Assessment Years: 2011-12 & 2012-13 DCIT, Vs. Smt. Geeta Sharma, Central Circle-18, B-373, Swarnajyanti Puram, New Delhi Ghaziabad PAN: BDNPS5808M (Appellant) (Respondent)

With C.O. Nos.74 & 75/Del/2019 [Arising out of ITA Nos.726 & 727/Del/2019]

Assessment Years: 2011-12 & 2012-13 Smt. Geeta Sharma, Vs. DCIT, B-373, Swarnajyanti Puram, Central Circle-18, Ghaziabad New Delhi PAN: BDNPS5808M (Appellant) (Respondent) Assessee by Sh. Deepanshu Mehta, Adv. Department by Sh. Pooja Swaroop, CIT(DR)

Date of hearing 26.06.2025 Date of pronouncement 30.06.2025 ORDER PER BENCH:

The instant batch of fourteen cases involves the four assessees herein, namely, Sh. Vinay Sharma, Sh. Dheer Chand Sharma, Sh. Guru Prasad Sharma and Smt. Geeta Sharma. The Revenues first and foremost appeal ITA No.712/Del/2019 with cross objection C.O. No.60/Del/2019 (for AY: 2011-12); and it’s twin appeals each ITA No. 716 & 717/Del/2019; 721 & 722/Del/2019; 726 & 727/Del/2019 with cross objections C.O. Nos. 64 & 65/Del/2019, 69 & 70/Del/2019, 74 & 75/Del/2019 in assessment years 2011-12 and 2012-13; arise against the CIT(A)- 29, New Delhi, taxpayer-wise orders, all dated 08.11.2018, in proceeding under section 153A read with section 144 of the Income Tax, 1961 (in short “the Act”); respectively.

Heard all these assessee’s as well as department. Case files perused.

2. We are informed at the outset by both the parties that all these cases have emanated from the department’s search action dated 23.08.2012 carried out in M/s. NKG Group of cases, including these four assessees. And that all these fourteen cases involving a common set of facts raising identical issue(s) therein. We thus proceed to take up the Revenue’s appeal ITA No.712/Del/2019 with Sh. Vinay Sharma’s cross objection C.O. No.60/Del/2019 as the “lead” cases for the sake of convenience and brevity.

3. Learned CIT(DR) vehemently argues in this factual backdrop that the Assessing Officer’s section 153A r.w.s. 144 assessment had rightly disallowed the assessee’s various claims inter alia including bogus purchases of Rs.6,32,86,276/-, negating cash credits of Rs.6,31,87,950/-, added unexplained cash credits of Rs.14,21,22,719/- as well as protective addition of Rs.9,76,050/- with last head of section 37(1) business expenses disallowance of Rs.3,87,142/-; respectively as against the CIT(A)’s lower appellate discussion directing him to restrict the same @ 2.5% thereof since representing accommodation entries provided to M/s. NKG Infrastructure Limited in the form