Priya Khanna vs. DCIT

Parties Involved

Facts Summary

The case involves an appeal by Priya Khanna against the order of the Commissioner of Income Tax (Appeals) for the Assessment Year 2018-19. The key issues are whether the assessment completed under section 153C of the Income Tax Act, 1961 is valid when the appellant's premises had also been searched under section 132 of the Act, and whether the addition of commission income of Rs.5,00,000/- under section 69A of the Act is justified. The appellant derives income from various sources, including interest income from Delhi Art Gallery Pvt. Ltd. (DAG), business income, rental income, capital gains, and salary income. A search operation was carried out on DAG Group, and incriminating material was found at the appellant's residential premises. The Assessing Officer issued a notice under section 153C of the Act, and an assessment was completed at an income of Rs.1,86,75,250/- with an addition of commission income of Rs.5,00,000/-. The appellant filed an appeal before the CIT(A), who dismissed the appeal. The appellant argued that the assessment was invalid and that the commission income was not justified. The CIT-DR submitted that the assessment order was correct and that the commission income was justified based on the incriminating material found during the search.…

Legal Issues

• 1. Whether the assessment completed under section 153C of the Income Tax Act, 1961 is valid when the appellant's premises had also been searched under section 132 of the Act.
• 2. Whether the addition of commission income of Rs.5,00,000/- under section 69A of the Act is justified.

Judgment Outcome

Decided in favour of Assessee.

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