ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1), MEERUT, BHAINSALI GROUND, MEERUT V. RAJ APIARIES EXIM PRIVATE LIMITED, MEERUT

ITA 1839/DEL/2025

AI Insights

The case involves an appeal by the Assistant Commissioner of Income Tax (ACIT), Meerut against Raj Apiaries Exim Pvt. Ltd., concerning the assessment year 2016-17. The appeal was directed against the order of the CIT(Appeals)/NFAC, Delhi, which had deleted an addition of Rs. 1,00,00,000 made on account of unexplained income under section 68 of the Income Tax Act, 1961. The Revenue contended that the CIT(A) erred in law and fact by ignoring admissions and findings related to entry providers and non-existent business activities at the assessed address. However, the assessee's counsel argued that the tax effect was below the threshold for maintainability of the appeal as per the latest CBDT circular, leading to the dismissal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781534 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2016-2017
• Appeal Filed On: 25-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Accommodation entries
• Section: 68

Judgement Text

"1 ITA No. 1839/Del/2025 ACIT v. Raj Apiaries Exim P Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER ITA No. 1839/DEL/2025 Asstt. Yr: 2016-17 ACIT, Circle-1(1)(1), Meerut. Vs Raj Apiaries Exim Pvt. Ltd., New No. 339, Old No. 278 Shiv Lok, Kankarkhera, Meerut-250001. PAN: AAECR 6495 D APPELLANT RESPONDENT Assessee represented by Shri Premjit S. Kashyap, FCA Department represented by Sh. Mahesh Kumar, CIT(DR) Date of hearing 23.09.2025 Date of pronouncement 29.09.2025 O R D E R PER: KRINWANT SAHAY, AM: The appeal in this case has been filed by the Revenue against the order dated 13.01.2025 passed by the learned CIT(Appeals)/NFAC, Delhi for A.Y. 2016-17. Grounds of appeal raised are as under: “1. Whether, on the facts and in circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) has erred in law and fact in deleting the addition of Rs. 1,00,00,000/- made on account of unexplained Income u/s 68 of the 1.T. Act, 1961, by ignoring the facts that Himanshu Verma has admitted that he is an entry provider & has facilitated accommodation entries through the entities controlled by him & M/s Citizy Infraheights Private Limited is one of them? 2. Whether, on the facts and in circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) has erred in law and fact by ignoring the fact that the Hon'ble ITAT has already held that Mr. Himanshu Verma is an entry provider? 3. Whether, on the facts and circumstances of the case, the Learned Commissioner of Income Tax (Appeals) has erred in law and on facts by ignoring the findings of Printed from counselvise.com 2 ITA No. 1839/Del/2025 ACIT v. Raj Apiaries Exim P Ltd. the field verification conducted during the assessment proceedings, which established that M/s Citizy Infraheights Private Limited did not exist at the given address and had no business activities? 4. That the appellant craves leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other.” 2. During proceedings before us at the very outset the counsel of the assessee filed a letter stating that the tax effect in the appeal filed by the Revenue is Rs. 30 lakhs therefore, the appeal should be dismissed as per the CBDT Circular09/2024 dated 17.09.2024. A copy of the letter given by the counsel of the assessee is reproduced as under: “KASHYAP & COMPANY CHARTERED ACCOUNTANTS BEFORE INCOME TAX APPELLANT TRIBUNAL DELHI BENCH \"G\", NEW DELHI In Ref of : Raj Apiaries Exim Pvt Ltd AY : 2016-17 PAN : AAECR6495D ITA No : 1839/DEL/2025 Date of Hearing 23.09.2025 Sirs That this is a departmental appeal in which addition of Rs. 1 Crore was made making a demand of additional Rs 30 lacs on the addition plus surcharge and education cess. (Copy of Computation sheet of Tax attached as Pg No 1 to 4) That as per CBDT circular 09/2024 dated 17.09.2024 the tax effect is below Rs 60 Lakh hence not maintainable. (Copy of Circular as Pg No 5 & 6). Your honors are requested to dismiss the departmental appeal. Submitted Premjit S. Kashyap (Counsel for the Respondent) Dated: 23.09.2025” Printed from counselvise.com 3 ITA No. 1839/Del/2025 ACIT v. Raj Apiaries Exim P Ltd. 3. Per contra, Ld. CIT(DR) relied on the order of the Assessing Officer. 4. We have considered the request of the learned counsel for the assessee and we find that since the total tax effect is below Rs. sixty lakhs in this case, therefore, Revenue’s appeal is dismissed as per CBDT Circular 09/2024 dated 17.09.2024 enhancing the tax limit to Rs. sixty lakhs for filing revenue appeals before the ITAT. However, the Revenue will be at liberty to file M.A. in case the issue involved is covered under any exceptional clause within the period prescribed by law. We order accordingly. 5. Revenue’s appeal ITA No. 1839/Del/2025 is dismissed. Order pronounced in open court on 29.09.2025. Sd/- Sd/- (ANUBHAV SHARMA) (KRINWANT SAHAY) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29.09.2025. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "