IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.3512/Del/2024 (ASSESSMENT YEAR: 2014-15)

Income Tax Officer, Babu Lal Aggarwal, Delhi. C-161, East of Kailash, Vs. New Delhi-110065.

PAN-AAGPA8601H (Appellant) (Respondent) Assessee by Shri Sanjay Sharma, CA Department by Shri Akhilesh Yadav, Sr. DR Date of Hearing 09/02/2026 Date of Pronouncement 28/04/2026

O R D E R

PER MANISH AGARWAL, AM:

This appeal is filed by the Revenue against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A) in short], dated 03.06.2024 in Appeal No. NFAC/2013-14/10258001 arising out of the order passed u/s 147 of the Income Tax Act, 1961 (the Act, in short) dated 22.05.2023 for Assessment Year 2014-15.

2. Brief facts of the case are that assessee is a Chartered Accountant by profession and filed his return of income on 31.03.2015 declaring total income of Rs.31,18,120/-. Based on the information that assessee had sold shares of the company M/s Hill Drop Resorts Pvt. Ltd. and had received a sum of Rs.2,33,60,000/- which was not offered for tax, proceedings u/s 148A were initiated to reopen the case of the assessee and order u/s 148A(d) of the Act was passed wherein it is alleged that during the year under appeal, the assessee has received the consideration from sale of shares shown as advance and since assessee has failed to prove the genuineness of transaction, therefore, satisfaction was recorded for escapement of income u/s 68 of the Act to the extent amount received during the year under appeal. During the re-assessment proceeding, in reply to show notice issued, assessee has filed copy of computation, balance sheet, bank statements, copy of agreement of share transactions, copy of FIR filed against the buyers, copy of Delhi High Court Mediation Centre notices etc. However, Assessing Officer has failed to appreciate the same and by holding the sum of Rs.2,33,60,000/- received during the year under appeal as unaccounted money of the assessee, addition was made u/s 69A r.w.s

115BBE of the Act.

3. Aggrieved by the said order, the assessee preferred an appeal before the Ld.

CIT(A) who vide order dated 03.06.2024 allowed the appeal of the assessee.

4. Against the said order, the Revenue is in appeal by taking following ground of appeal:

“The Ld. CIT(A) erred in law and on fact of the case in deleting the addition of Rs.2,33,60,000/- on account to unexplained unaccounted money in the form of advance payment during the Financial Year 2013-14 (A.Y.2014-15). BL Aggarwal has not incorporated that transfer neither in the books of the company nor in the personal books in order to evade income tax. As per agreement Sh. BL Aggarwal having in possession of shares 11,500 amounting to Rs.2,33,60,000/- and the same has not been brought to tax.”

5. The sole effective ground of appeal of the Revenue is with respect to the deletion of addition made at Rs.2,33,60,000/- by holding the same as unexplained unaccounted money of the assessee u/s 69A of the Act.

6. Before us, Ld. SR. DR vehemently supported the order of the AO and submits that during the year under appeal, assessee has credits in his bank account claimed as sale consideration from the sale of shares, however, no capital gain was declared and it was claimed that the said amount was advance. Ld. Sr. DR AR submits that as per the ledger account submitted by the assessee, this amount was shown as the advance received against the sale of shares of Hilldop Resorts Pvt. Ltd. however in the return of income filed for subsequent assessment years, no such advance was shown by the assessee, therefore, the Ld. Sr. DR submits that the AO has rightly treated with this amount as unexplained money of the assessee and, he requested for restoration of the additions so made.

7. On the other hand, the Ld. AR for the assessee submits that assessee had entered into an agreem