ANJU AGARWAL,KAMLA NAGAR V. INCOME TAX OFFICER, INCOME TAX OFFICE

ITA 418/AGR/2024

AI Insights

The case involves appeals by Anju Agarwal against the orders of the Commissioner of Income Tax (Appeals), which confirmed the additions made by the Assessing Officer for the Assessment Years 2017-18 and 2018-19. The additions were based on allegations that the assessee had obtained accommodation purchase entries amounting to Rs. 53.43 Lacs from M/s Umesh Kumar Vivek Kumar, which were considered as unexplained cash credits under section 68 of the Income Tax Act. The Tribunal examined the nature of the transactions and found that the assessee had not directly engaged in any purchase or sale but had conducted her business through aarti, which handled all transactions. Consequently, the Tribunal allowed the appeals, deleting the impugned additions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126602 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDER SHRIVASTAVA; LD.
• Assessee Lawyers: K.K. JAIN; LD
• Keywords: Bogus; Commissioner; Commissioner of Income Tax; Transactions
• Section: 147; 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 आयकरअपील सं. / ITA No. 418/Agr/2024 (िनधाŊरणवषŊ / Assessment Year: 2017-18) & 2. आयकरअपील सं. / ITA No. 419/Agr/2024 (िनधाŊरणवषŊ / Assessment Year: 2018-19) Anju Agarwal D-26, Kamla Nagar Agra (UP). बनाम/ Vs. Income-tax Officer, Ward 2(1)(1), Agra. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AWTPA-4297-L (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. K.K. Jain, Adv. – Ld. AR ŮȑथŎकीओरसे/Respondent by : Sh. Shailender Shrivastava, - Ld. Sr. DR 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 assessee for Assessment Years (AY) 2017-18 and 2018-19 arise out of separate orders of first appellate authority. First, we take up appeal for AY 2017-18 which arises out of an order passed by learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 30-09-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144B of the Act on 11-02-2022. The assessee is stated to be engaged in trading of food-grains. In the assessment order, Ld. AO alleged that the assessee obtained accommodation purchase entry from M/s Umesh Kumar Vivek Kumar (managed by Shri Ashok Kumar Gupta) for Rs.53.43 Lacs. The assessee did not carry out any 2 other transaction with any other entity. The Ld. AO, after adjusting returned income of Rs.3.81 Lacs, added the differential of Rs.49.62 Lacs to the income of the assessee u/s 68 r.w.s. 115BBE. The Ld. CIT(A) confirmed the assessment against which the assessee is in further appeal before us. 2. From the case records, it emerges that the assessee has carried on food-grain business through aartia M/s Umesh Kumar Vivek Kumar prop. Shri Vivek Kumar Gupta. For the said purpose, the assessee advanced certain sum to that entity and that entity, in turn, purchased the goods first and then sold the goods on behalf of the assessee. The assessee has neither taken the delivery of the goods nor sold the goods and all the transactions of sale and purchase has been done by that entity only. No purchase / sale consideration has been paid to / from the aartia. The assessee has only received net surplus of Rs.3.81 Lacs which has duly been disclosed in the return of income. On these facts, no allegation of bogus sale or purchase could be sustained against the assessee. Accordingly, by deleting the impugned addition, we allow the appeal on merits. Delving into other grounds has been rendered mere academic in nature. The appeal stand allowed. 3. Facts as well as issues in AY 2018-19 are quite identical. Accordingly, our adjudication as above shall mutatis mutandis apply to this appeal also. 3 4. Both the appeals stand allowed. 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 "