MOHINDER KUMAR GARG,NEW DELHI V. DCIT CENTRAL CIRCLE-II, GURGAON

ITA 7670/DEL/2019

AI Insights

The case involves two appeals filed by the assessee, Mohinder Kumar Garg, against the common order of the Commissioner of Income Tax (Appeals) which had reduced the additions made by the DCIT, Central Circle-II, Gurugram. The additions were initially made on a protective basis amounting to Rs. 3,07,85,916 for AY 2011-12 and Rs. 5,13,28,408 for AY 2012-13, which were later reduced to Rs. 15,39,296 and Rs. 25,66,420 respectively. These additions were related to alleged commission/brokerage on receipts deemed as bogus. The Tribunal referenced a previous decision where similar additions were deleted, leading to the decision to allow the appeals and delete the additions for the current assessment years.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312659 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Other Referred Cases: Trendy Attire (P) Ltd. vs. DCIT, M/s. Orient Craft Ltd. vs. DCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUJIT KUMAR
• Assessee Lawyers: RAKESH GUPTA; DEEPESH GARG
• Keywords: Bogus
• Section: 143(3); 153A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.7670/Del/2019 (ASSESSMENT YEAR 2011-12) ITA No.7671/Del/2019 (ASSESSMENT YEAR 2012-13) Sh. Mohinder Kumar Garg 101, Plot No.5, Sawera Apartments, Sector-13, Rohini, New Delhi-110 085 PAN-AAJPG8652K Vs. DCIT, Central Circle-II Gurgaon. (Appellant) (Respondent) Assessee by Dr. Rakesh Gupta, Adv. & Sh. Deepesh Garg, Adv. Department by Shri Sujit Kumar, CIT-DR Date of Hearing 29/04/2025 Date of Pronouncement 29/04/2025 O R D E R PER BENCH: These are two appeals filed by the assessee against the common order dated 23.07.2019 of Ld. Commissioner of Income Tax (Appeals), [Ld. CIT(A), in short], in appeal No. 320,345,342,337/CIT(A), 3/GGN/2017-18 arising out of assessment order dated 26.12.2017 passed by the DCIT, Central Circle-II, Gurugram u/s 153A red with section 143(3) of the Income Tax Act, 1961 (the Act, in short). 2. At the outset, the Ld. AR of the assessee submitted that in the present appeals for Assessment Years 2011-12 and 2012-13 additions were made on protective basis of Rs. 3,07,85,916 and of Rs.5,13,28,408/- respectively. The substantive additions were made in the hands of M/s Orient Craft Limited for 2 ITA No.7670 & 7671/Del/2019 Mohinder Kumar Garg. vs. DCIT these years who had made the payments to the assessee as job charges. In the case of assessee, Ld. CIT(A) has reduced the additions to Rs.15,39,296/- for AY 2011-12 and at Rs.25,66,420/- in AY 2012-13 on account of alleged commission/brokerage @ 5% on the receipts alleged as bogus. 3. Ld. AR further submitted that identical issues were involved in assessee’s own case for Assessment Year 2013-14 and 2014-15 wherein appeals of the assessee were decided by the co-ordinate bench of the Tribunal in ITA No.7672 & 7673/Del/2019 vide order dated 30.11.2023 wherein the Co-ordinate Bench has deleted the additions by observing as under: “5. We have given thoughtful consideration to the issue involved and will prefer to rely on the order dated 30.06.2022 in ITA Nos.7659 & 7660/Del/2 0 19 in the case of Trendy Attire (P) Ltd., wherein the coordinate Bench, on which one of us was in the quorum, dealt with the issue extensively on all aspects and deleted the protective additions. The relevant findings at paras 5 to 6.1 are reproduced below:- \"5. On behalf of the assessee it was submitted by the Ld. AR, that in the case of M/s. Orient Craft Ltd.. the substantive addition have been deleted therefore, the additions in the hands of appellant cannot survive. Ld. DR however, submitted that as Ld. CIT(A) had observed that the additions in the hands of assessee are being deleted on protective basis and will revive in case substantive addition is deleted, therefore, assessee cannot take advantage of the ITAT order in favour of M/s. M/s. Orient Craft Ltd.. 6. Appreciating the matter on record it can be observed that in ITAT order dated 24.09.2021 in ITA no. 3312/Del/2019 for assessment year 2015-16 and ITA No. 3311/Del/2019 for assessment year 2014-15 the substantive additions in the hands of Ms. Orient and have the deleted. It can be observed that in para no. 49 in ITA No. 3311/Del/2019 and para no. 21 of ITA no. 3312/Del/2019 it has been held that M/s. Orient Craft Ltd. has proved that the material was purchased from vendors involved and payments have been made through banking channel. It was further held that the voluminous documentary evidences filed by M/s. Orient Craft Lid. clearly established the genuineness of purchase of fabric from the present assessee /appellant. 6.1 That being so there is no force in the contention of the Ld. DR that if substantive additions are deleted then as per orders of id. CIT(A) the protective assessment in the hands of present assessee/appellant will still revive. In fact, the findings arrived by the Tribunal in case of M/s. Orient Craft Ltd. are to the effect that the purchases made from the present assessee were genuine therefore, the Bench is of firm view that protective additions in the hands of the assessee appellant was never sustainable.\" 3 ITA No.7670 & 7671/Del/2019 Mohinder Kumar Garg. vs. DCIT 6. We are of the considered view that the facts are identical and there is nothing from the Id. DR to submit anything on law. Accordingly, following the coordinate Bench finding in the case of Trendy Attire (P) Ltd. (supra) as applicable to the assessee qua the alleged expenses on account of job work done by M/s Sai Exports proprietor Shri Mohinder Kumar Garg, the grounds No.3 and 4 in both the appeals stand allowed and the impugned additions in respective AY are deleted.” 4. Before us, at the time of hearing, both the parties agreed that facts and issues involved in the present two appeals are identical to the facts and issues in assessee’s appeal for Assessment Year 2013-14 and 2014-15 referred to above. Since, the facts are identical and thus, following the findings of the Co- ordinate Bench in assessee’s own case for AY 2013-14 & 2014-14 (supra), the additions made are hereby deleted. 5. As a result, both the appeals of the assessee are allowed and the impugned additions in respective assessment years are deleted. 6. Appeals of the Assessee in ITA Nos. 7670/Del/2019 & 7671/Del/2019 are allowed. Order pronounced in open court on 29/04/2025. Sd/- Sd/- (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 07/05/2025 PK/Sr. Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "