Har Narain Agarwal th, L/H Prem Chand Garg, New Delhi V. ACIT, Circle-41(1), New Delhi

ITA 8189/DEL/2019

AI Insights

The case involves Har Narain Agarwal, a businessman engaged in trading and exporting food grains, who appealed against the order of the CIT (A)-14, New Delhi. The appeal arose from an earlier order by the ACIT, Circle-41(1), New Delhi, which added a substantial business advance received from Japan Corporation to the assessee's income for the assessment year 2013-14. The primary contention in the appeal was the justification of this addition under Section 41 of the Income Tax Act, 1961, without clear evidence of the nature of the receipt. The Tribunal, after hearing the arguments of the Senior DR representing the Revenue and noting the absence of the appellant, dismissed the appeal, supporting the decisions of the tax authorities below.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 115575 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 11-09-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 14-10-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘B’ : NEW DELHI) BEFORE SH. N.K.BILLAIYA, ACCOUNTANT MEMBER AND SH. ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 8189/Del/2019 (Assessment Year : 2013-14) Har Narain Agarwal Through Legal heir Prem Chand Garg A-8, Bhagwan Dass Nagar, East Punjabi Bagh, New Delhi PAN : AAIPA6308B Vs. ACIT, Circle-41(1), New Delhi (APPELLANT) (RESPONDENT) Appellant by None Revenue by Sh. Vivek Kumar Upadhyay, Sr. DR Date of hearing: 12.09.2023 Date of Pronouncement: 12.09.2023 ORDER PER ANUBHAV SHARMA, JM: The appeal has been preferred by the Assessee against the order dated 26.08.2019 of CIT (A)-14, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) arising out of an appeal before it against the order dated 30.03.2016 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ACIT, Circle-41(1), New Delhi (hereinafter referred as the Ld. AO). 2. Heard and perused the record. ITA No. 8189/Del/2019 2 3. As the case was called for hearing, non-appeared for assessee and the record shows notices have been repeatedly issued to the assessee including e- mail. No more opportunity is justified. Arguments of ld. DR were heard who supported the findings of Ld. Tax Authorities below. 4. It can be appreciated that the assessee is engaged in the business of trading and export of food grains and also in the business of storage of food grains with two firms M/s. Kannu Exports and M/s. Gulmarg Ice Factory & Cold storage. The case of assessee was selected to examine introduction of capital in the year and Ld. AO observed that assessee had received business advance of Rs. 2,94,43,513/- from Japan Corporation which is lying unaltered over the years. Assessee was unable to give a satisfactory reply as to why this amount stands in the book and has not been paid. Ld. AO considered the amount to be income of the assessee and made the addition which is sustained by Ld. CIT(A) on the basis that assessee was unable to satisfy what was the nature of receipts and considering the facts arrived a conclusion that if there standing as trade credits for year’s addition u/s 41of the Act is justified. The grounds raised by assessee are primarily questioning the justification of addition u/s 41 of the Act without there being any material on record to show the nature of receipt. The findings of ld. Tax Authorities require no interference. Grounds have no substance and consequently the appeal of assessee is dismissed. Order pronounced in the open court on 12 th September, 2023. Sd/- Sd/- (N.K.BILLAIYA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 12 .09.2023 *Binita, SR.P.S* Copy forwarded to: ITA No. 8189/Del/2019 3 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT AR, ITAT New Delhi