The Tax Publishers2021 TaxPub(DT) 0526 (Del-Trib)



Sanjay Duggal v. ACIT

ITA Nos. 1800 to 1828, 1608-1609, 1611 to 1627, 1797 to 1799, 1991/Del/2019

19 January, 2021

In favour of assessee.

Appellant by: Kapil Goel, Sandeep Goel, R.S. Singhvi, Satyajeet Goel, Advocate

Respondent by: Pramita M Biswas, Commissioner--Departmental Representative


All the appeals by different Assessees are directed against the common Order of the learned Commissioner (Appeals)-23, New Delhi, dated 30-12-2018, for the above assessment years.

2. We have heard the Learned Representatives of all the parties through videoconferencing and perused the material on record. All parties have also filed written submissions which are also taken into consideration.

3. This Order shall dispose of all the Group 52 Appeals pertaining to Talwar and Duggal Group of Cases in which identical issues have arisen.

4. Learned Counsel for the Assessee mainly argued in ITA. No. 1813/Del./2019 in respect of Shri Sanjay Duggal as a lead case and references also made to all the remaining appeals as well.

5. Learned Commissioner (Appeals) recorded the facts of the case in detail under the Head 'Background of the Case' in the impugned order which refers to the factual position in respect of all the above Assessees. The background of the facts are as under:--

5.1. A search and seizure operation was conducted on 29-12-2015 against Shri Rajnish Talwar (who was Ex-General Manager (Sales)) of M/s. Jagatjit Industries Ltd., (M/s. JIL). Shri Sanjay Duggal (who was Ex.DGM (Sales) of JIL), their family Members and MAPSKO Group. The basic issue of search and seizure was deposit of huge money in the bank accounts of M/s. Alfa India which is proprietary concern of Shri Arun Duggal brother of Shri Sanjay Duggal and transfer of huge amounts from bank accounts of M/s. Alfa India to various bank accounts maintained by Shri Rajnish Talwar and his family Members and Shri Sanjay Duggal and his family Members.

5.2. These accounts were maintained in various branches of South India Bank. As per the submissions made by the Assessee before the learned Commissioner (Appeals) in the case of Shri Sanjay Duggal for the assessment year 2010-2011, bank accounts in the name of M/s. Alfa India proprietary concern of Shri Arun Duggal, real brother of Shri Sanjay Duggal were used as conduit just to route the unaccounted money generated through the game of 'rebates and discounts'. The Assessees claimed that M/s. Alfa India was never a beneficiary, and all the funds in the accounts either transferred by Shri Sanjay Duggal's Family or Shri Rajnish Talwar's Family.

5.3. The Search and Seizure operation was conducted because the Income Tax Department came to know that Shri Rajnish Talwar was maintaining the Savings Bank Account No. 358.53.3614 with South India Bank Ltd., Chittaranjan Park, New Delhi Branch on 1-10-2008. Similarly, Shri Sanjay Duggal was maintaining a S.B. Account No. 555.53.204 with South India Bank Ltd., Faridabad Branch. On going through the transactions in the abovementioned Bank Accounts of Shri Rajnish Talwar and Shri Sanjay Duggal, it was noticed that large value fund transfers were coming in these bank accounts from a Current Account No. 358.73.2431 which was in the name of M/s. Alfa India maintained with same bank (Chittaranjan Park, New Delhi Branch). Credits in the bank account of M/s. Alfa India were received by way of proceeds of large value cheques tendered for collection in the account and this money was found transferred (from the bank account of M/s. Alfa India) to the bank accounts of Sh. Rajnish Talwar (and his family members) and Shri Sanjay Duggal (and his family members). Sh. Rajnish Talwar and Sh. Sanjay Duggal used to withdraw the funds from their (and family members) bank accounts, in cash, generally.

5.4. Further, it was found that the above mentioned process was followed in various other connected bank accounts as well. The bank accounts showing similar pattern of transaction as discussed above are detailed as below :--