IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER आ.अ.स/ं .I.T.A No.1247/Del/2025 िनधा(cid:9)रणवष(cid:9)/Assessment Year:2015-16 DCIT, बनाम BAJRANG LAL AGGARWAL Central Circle-28, Vs. Room No.327, E-2, ARA Centre, New Delhi. Jhandewalan Extension, New Delhi.

PAN No.AAGPA0771J अपीलाथ(cid:20) Appellant (cid:22)(cid:23)यथ(cid:20)/Respondent Revenue by Shri Gaurav Jain, Advocate &

Shri Tarun Chanana, Advocate Assessee by Shri Mahesh Kumar, CIT DR सनु वाईक(cid:8)तारीख/ Date of hearing: 21.08.2025 उ(cid:14)ोषणाक(cid:8)तारीख/Pronouncement on 04.11.2025 आदेश /O R D E R PER C.N. PRASAD, J.M.

This appeal is filed by the Revenue against the order of the Ld. CIT(Appeals) in deleting the addition made by the AO holding that the addition was not made based on any seized material.

2. Heard rival submissions, perused the orders of the authorities below. The assessee filed return of income on 19.12.2015 declaring income of Rs.10,14,890/- and the return was processed u/s 143(1) on 04.01.2016. Search and seizure operations were carried out u/s 132 of the Act on 19.12.2019 in the Stonex Group of cases, accordingly, warrant under 132 was duly executed on the assessee’s locker no.679 held in HDFC Bank jointly with his wife M/s Manju Devi Aggarwal in Union Bank of India. Subsequently, assessment u/s 153A was made on 30.09.2021 making addition of Rs.19,20,877/- u/s 68 of the Act, denying long term capital gain claimed by the assessee u/s 10(38) of the Act in his return of income.

3. On appeal the Ld. CIT(Appeals) deleted the addition on the ground that the addition was not made based on any seized materials but was made only on the analysis of the financial statement of the company namely Alankit Ltd. whose shares were claimed as long term capital gains by the assessee observing as under:

“7. Ground Nos. 1, 3 to 3.4: The brief facts of this case are that a search and seizure operation u/s 132A was conducted on Stonex Group of cases on 19.12.2019 by Unit-2(2) of Investigation Wing, New Delhi. A warrant of authorization for search was issued in the name of appellant at locker No. 679 held in HDFC Bank, West Punjabi Bagh, New Delhi and locker no. 557, jointly held by appellant and Ms. Manju Devi Agarwal in Union Bank of India, Shalimar Bagh, New Delhi. Subsequent to the search u/s 132 in the case of appellant, notice u/s 153A of the Act was issued on 21.12.2020. Assessment proceedings u/s 153A were completed vide order dated 30.09.2021 after making an addition of Rs. 19,20,877/- on account of unexplained credit. AO had noted in the assessment order that appellant had acquired 13,700 shares of M/s Alankit Ltd. for Rs. 12,25,631/- in July, 2013 and sold such shares in March, 2015 for a total consideration of Rs. 31,46,508/-. The appellant had claimed exempt capital gain of Rs. 19,20,877/- u/s 10(38) of the Income Tax Act, 1961. It was held by AO that M/s Alankit Ltd. is a penny stock as the price of the shares of M/s Alankit Ltd. increased by more than 250% within a very short span of less than 21 months. Accordingly, an addition at Rs.19,20,877/- was made by the AO u/s 68 as unexplained credit.

7.1 In the grounds of appeal, as well as the written submissions, appellant has claimed that the case of the appellant is that of an unabated assessment and on the date of search no assessment proceedings were pending. It was further submitted by the appellant that no incriminating material was found during the course of search and the present addition has been made solely on the basis of claim made in the return of income.

7.2 The appellant has also sought to place reliance upon the order of Hon’ble Supreme of PCIT Vs Abhisar Build well Pvt. Ltd. in Civil Appeal No. 6580 of 2021 dated 24.12.2023 wherein it was held that if no assessment proceedings are pending as on the date of search and no incriminating material was found during the search, no addition ca