ACIT 1, GWALIOR V. PANKAJ ADVERTISING PVT LTD, GWALIOR

ITA 29/AGR/2020

AI Insights

The case involves two appeals by the Assistant Commissioner of Income Tax, Circle-1, Gwalior against M/s. Pankaj Advertising Pvt. Ltd. for the Assessment Years 2010-11 and 2013-14. The appeals were related to the additions made by the Assessing Officer under section 68 of the Income Tax Act, which pertained to discrepancies in the sundry creditor balances. The CIT(A) had deleted these additions after finding that the differences were due to opening balances and that some were offered to tax in subsequent years. The Tribunal, after hearing the arguments and reviewing the submissions, upheld the CIT(A)'s decision and dismissed the appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126601 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDER SHRIVASTAVA; LD.
• Assessee Lawyers: MAHESH AGARWAL; LD
• Keywords: Dismissed; HRA; Commissioner; Commissioner of Income Tax; Deleted; Opening balances; AY 2010-11
• Section: 143(3); 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपील सं. / ITA No.28/Agr/2020 (िनधाŊरणवषŊ / Assessment Year: 2010-11) & 2. आयकरअपील सं. / ITA No.29/Agr/2020 (िनधाŊरणवषŊ / Assessment Year: 2013-14) ACIT, Circle-1, Gwalior. बनाम/ Vs. M/s. Pankaj Advertising Pvt. Ltd. Parakh Home, Bachchraj Ka Bada, Sarafa Bazar, Lashkar, Gwalior. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AACCM-2597-D (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Shailender Shrivastava, - Ld. Sr. DR ŮȑथŎकीओरसे/Respondent by : Sh. Mahesh Agarwal, CA – Ld. AR सुनवाईकीतारीख/Date of Hearing : 21-02-2025 घोषणाकीतारीख /Date of Pronouncement : 23-04-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by revenue for Assessment Years (AY) 2010-11 & 2013-14 arise out of separate orders of first appellate authority. First, we take up appeal for AY 2010-11 which arises out of an order passed by learned Commissioner of Income Tax (Appeals), Gwalior [CIT(A)] on 26- 11-2019 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 28-03-2013. Having heard rival submissions, the appeal is disposed-off as under. 2. In the assessment order, Ld. AO observed that there was difference in sundry creditor balances for Rs.232.04 Lacs which is tabulated on Page No.4 of the assessment order. The same was added to the income 2 of the assessee u/s 68 for want of any satisfactory response from the assessee. 3. During first appeal, the assessee’s submissions were subjected to remand proceedings. The assessee’s further submissions reconciling the balances / rejoinder were subjected to second remand proceedings. However, Ld. AO failed to make any worthwhile enquiry even during considerable period of time i.e., 8 months. The Ld. CIT(A) noted that Ld. AO only compared closing balances without making adjustment in opening balances. The difference to the extent of Rs.149.78 Lacs was there in the opening balance and therefore, the same could not be added in this year. Another finding was that difference in sundry creditors was offered to tax u/s 41(1) in subsequent years. The Ld. CIT(A) rendered factual finding with respect to each of the entity and finally, deleted addition to the extent of Rs.226.36 Lacs against which the revenue is in further appeal before us. 4. The factual findings as rendered in the impugned order remain uncontroverted before us. It could be seen that substantial difference arose due to difference in opening balances which could not be added u/s 68 for this year. Another fact is that out of remaining difference, the assessee offered said difference to tax in subsequent years u/s 41(1). This being so, the finding of Ld. CIT(A) could not be faulted with. We order so. The appeal stand dismissed. 5. In AY 2013-14, Ld. AO made similar addition for difference in sundry creditors. During first appeal, the assessee successfully reconciled substantial differences. The adjudication of Ld. CIT(A) is on same lines. Therefore, facts being pari-materia the same, taking the same view, we confirm the adjudication of Ld. CIT(A). 3 6. Both the appeals stand dismissed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) Ɋाियक सद˟ /JUDICIAL MEMBER लेखा सद˟ /ACCOUNTANT MEMBER Dated: 23-04-2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AGRA "