IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.5994/Del/2024, A.Y. 2009-10 Income Tax Officer, Advantage Housings Pvt.

Ward-1(1), Ltd.

C.R.Building, Vs. 220, Okhla Indl. Estate, New Delhi Phase – III, New Delhi PAN: AAFCA9591E (Appellant) (Respondent)

Appellant by Sh. M.P. Rastogi, Advocate Sh. Shivam Malik, Advocate Respondent by Sh. Jitender Singh,CIT DR Date of Hearing 18/12/2025 Date of Pronouncement 17/03/2026 O R D E R PER RAJ KUMAR CHAUHAN , J.M.:

The appeal is directed against the order dated 23.10.2024of Learned Commissioner of Income Tax (Appeals), New Delhi [hereinafter referred to as the “CIT(A)”], passed under section 250 of the Income Tax Act, 1961 [hereinafter referred to as “the Act”] whereby the addition of Rs.

3,50,00,000/- made u/s 69C of the Act in the assessment order dated

19.10.2016 was deleted.

2. The facts in brief as culled out from the proceedings are that the search and seizure operation u/s 132 of the Act was conducted on Sh. K. S. Dhingra & Sh. G. S. Dhingra group of cases on 16.09.2011. During the course of search & seizure operation, certain documents/papers belonging to the assessee M/s. Advantage Housing Pvt. Ltd. were found and seized. Based on the seized paper, the case of the appellant company was initiated u/s 153C of the Act by issuance of notice u/s 153C on 08.10.2013. The assessment proceedings were completed vide order u/s 153C r.w.s. 143(3) of the Act on 28.03.2014 by making a total addition of Rs. 3,50,00,000/-. In the appeal, filed by the assessee company before the Ld. CIT(A) against the order of the Ld. Assessing officer (‘AO’) u/s 153C r.w.s. 143(3) of the Act dated 28.03.2014, vide order dated 01.12.2014, ld. CIT(A) held the order of the Ld. AO as invalid due to the defect in assumption of jurisdiction. The basis of the addition was that during the course of search, a note pad from the table of Shri Naveen Chaudhary, CFO, M/s. U.K. Paints India Pvt. Ltd. was seized forming part of Annexure A-15. From the perusal of the said note pad page no. 3 and scanned copy thereof mentioned at page no. 2 of the assessment order shows that a property no.

58, Sunder Nagar, New Delhi was purchased by three persons to create a new company M/s. Advantage Housing Pvt. Ltd. in which all the three persons were having equal shares. The sale deed has been executed as per Ld. AO for Rs. 33 crores and in addition to that an amount of Rs. 3.5 crore was paid in cash, as per copy of note Pad found during the search. Against the order of the Ld. CIT(A) wherein the assessment order was set aside, the department preferred appeal before the ITAT bearing ITA No. 145/Del/2015 which was decided by ITAT on 27.02.2020. The ITAT approved the reasoning given by Ld. CIT(A). Against the order of the ITAT dated 27.02.2020, department did not prefer any appeal before the Hon’ble High Court, however, in the meantime, before disposal of the appeal by the ITAT, as aforesaid, the notice u/s 148 of the Act was issued on 16.04.2015 which was duly served after taking necessary approval accorded by the Principal Commissioner of Income Tax, Circle -1, New Delhi on 9th March, 2015 for reopening the case. The case was reopened after considering the reply dated 14.05.2015 filed by the assessee wherein the assessee stated that the returns so filed originally be treated as having been filed in compliance to notice u/s 148 of the Act. The statutory notice u/s 143(2) of the Act was issued on 15.07.2015 followed by notice u/s 142(1) of the Act dated 18.07.2016 and duly served upon the assessee. Vide reply dated 31.08.2016, the assessee raised objection with regard to reasons to believe for issuance of notice u/s 148 of the Act. A final show cause notice was issued to the assessee company on 27.09.2016 requiring it to explain as to why the amount of Rs. 3.5 crore should not be treated as the amount given in cash in excess of that r