ITAT Slams Revenue: Appeal Dismissed After AO’s Unexplained Truck Business Income Addition Found Baseless
The present appeal has been filed by the DCIT, Circle 61(1), Delhi (Appellant), against a taxpayer named Sukhbir Singh Chabra (Respondent) in the Income Tax Appellate Tribunal (ITAT), Delhi Bench “G”, New Delhi, before Shri Challa Nagendra Prasad (Judicial Member) and Shri Avdhesh Kumar Mishra (Accountant Member). The case is related to the assessment year 2016-17, was heard in the court on August 21, 2025, and the final decision was announced on November 04, 2025.
This appeal has been filed by the Income Tax Department challenging an order dated February 28, 2020, issued by the CIT(A), for the assessment year 2016-17. The order deleted the addition made by the Assessing Officer (AO) as unexplained income of the assessee from the truck-running business.
The authorised representative of the department claimed that in violation of Rule 46A, the assessee furnished additional evidence before CIT(A), which led it to mistakenly allow the appeal; however, the AO was not given any chance to cross-check the evidence submitted by the assessee. On this, the authorised representative of the assessee claimed that they did not submit additional evidence before CIT(A); whatever evidence was furnished earlier before the AO during the assessment was the same as what was served before CIT(A).
When the case was taken before the Income Tax Appellate Tribunal (ITAT), Delhi. The tribunal ruled that since the Income Tax Department (Revenue) could not flag which documents were additionally submitted as evidence before CIT(A), the court rejected the claim of revenue.
The tribunal did not find any relevant reason to interfere in the findings of CIT(A) and hence rejected the appeal filed by the DCIT/Revenue/Income Tax Department.
Citation: DCIT, Circle 61(1), Delhi Vs Sukhbir Singh Chabra (ITAT Delhi); I.T.A No.315/Del/2022; 04/11/2025; 2016-17
Refer to the official judgement for complete information
