Deepak Choudhary vs. DCIT, Central Circle - 5, Delhi

Parties Involved

Facts Summary

The case involves the assessee, Deepak Choudhary, a chartered accountant and statutory auditor of Vestige Marketing Private Limited (VMPL). A search and seizure operation was conducted on the Vestige group of companies and the assessee. The revenue alleged that the search revealed a large-scale tax evasion scheme involving bogus purchases and commission expenses, generation of unaccounted cash, and distribution of this cash among the shareholders and the assessee. The assessee admitted to arranging bogus bills of purchase and commission for the Vestige group, including VMPL. The revenue's case was supported by sworn statements, digital evidence, and documentary evidence. The assessee filed his return of income for the Assessment Year 2018-19 declaring total income of Rs 82,25,020. The learned Assessing Officer (AO) disallowed certain purchases made by VMPL as bogus and added cash in the hands of the shareholders and the assessee. The assessee and the revenue appealed to the Tribunal against the orders of the Commissioner of Income Tax (Appeals) and the Commissioner of Income Tax (Appeals)-24, New Delhi.…

Legal Issues

• 1. Whether the addition made by the AO under section 69A of the Act is sustainable.
• 2. Whether the addition made in the hands of the assessee has any legs to stand in the eyes of law.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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