RAJEEV SHARMA,PUNE V. INCOME TAX OFFICER, INDORE

ITA 837/IND/2024

AI Insights

The case involves Rajeev Sharma, the appellant, who contested an addition of Rs. 10,34,615/- to his income for the Assessment Year 2012-13, which was treated as income from other sources by the AO. The addition was related to expenses incurred through credit cards for business affairs of his employer, which were later reimbursed. The AO had initially made several additions to the assessee's income due to non-compliance with notices, leading to an ex-parte assessment order. The CIT(A) remanded six types of additions back to the AO but sustained the addition related to credit card payments. The ITAT found merit in the assessee's argument that these were reimbursements for business expenses and not taxable as income.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784501 (ITAT-INDORE)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 27-11-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEENARRATEDTHEFACTSTHATTHEASSESSEEWASAN; FORREVENUEDOESNOTHAVEANYOBJECTION; SHRISANJEEVBHAGAT
• Assessee Lawyers: SHRISACHINKUMAR
• Section: 147; 148; 144; 142(1); 5(2)

Judgement Text

"Page 1 of 4 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.837/Ind/2024 Assessment Year:2012-13 Rajeev Sharma, Chester Field, Muhmmadwadi, Pune बनाम/ Vs. ITO 5(2) Indore (Assessee/Appellant) (Revenue/Respondent) PAN: ARZPS3703L Assessee by Shri Sachin Kumar, AR Revenue by Shri Sanjeev Bhagat, Sr. DR Date of Hearing 04.11.2025 Date of Pronouncement 11.11.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first-appeal dated 30.09.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 18.12.2019 passed by learned ITO-5(2), Indore [“AO”] u/s 144/147 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2012-13, the assessee has filed this appeal on the grounds as mentioned in Form No. 36. Printed from counselvise.com Rajeev Sharma ITA No. 837/Ind/2024 - AY 2012-13 Page 2 of 4 2. The background facts leading to present appeal are such that the assessee-individual did not file any return of AY 2012-13. The AO, on the basis of information in possession, noticed certain financial transactions having been made by assessee during the previous year 2011-12 relvant to AY 2012-13. Accordingly, the AO sought verification from assessee vide a letter but the same remained uncompiled by assessee. Ultimately, the AO recorded reason and after taking approval from prescribed authority, issued notice dated 28.03.2019 u/s 148 to initiate proceeding of section 147 against assessee. Thereafter, the AO issued notices u/s 142(1) to assessee. However, the notice u/s 148 as well as 142(1) were remained uncompiled. Therefore, the AO issued show-cause notice u/s 144 also but the same also remained uncompiled by assessee. Finally, the AO completed assessment vide ex-parte order u/s 144 after making seven (7) types of additions on different counts and determining total income at Rs. 1,57,01,670/-. Aggrieved, the assessee carried matter in first-appeal whereupon the CIT(A) remanded six types of additions to the file of AO for a fresh adjudication after verification of assessee’s evidences, however he has sustained one addition of Rs. 10,34,615/- on account of credit card payments. Now, the assessee has come in next appeal before us assailing the order of CIT(A) to the extent it relates to sustenance of addition of Rs. 10,34,615/-. 3. Ld. AR for assessee narrated the facts that the assessee was an employee of a company and the assessee incurred expenses of Rs. 10,34,615/- on payments by way of/through credit cards for the business Printed from counselvise.com Rajeev Sharma ITA No. 837/Ind/2024 - AY 2012-13 Page 3 of 4 affairs of employer and the same were later reimbursed by assessee’s employer. However, the AO has treated the same as income of assessee from other sources which is wrong. Ld. AR submitted that the assessee is having all documentary evidences to satisfy the AO about such nature of payments and reimbursements by employer. Therefore, this issue must also be remanded to the file of AO. Ld. AR pointed out that the AO has not yet passed order of afresh adjudication as directed by Ld. CIT(A) for six (6) types of additions and hence there is no harm if the issue of credit card payments is also remanded to the AO. Ld. DR for revenue does not have any objection if the issue is remanded to AO. Therefore, we remand the issue of addition of Rs. 10,34,615/- to the file of AO for adjudication afresh after necessary verification of the evidences of assessee. Needless to mention that the AO shall considered assessee’s submission judiciously. 4. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 11/11/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore ि◌नांक/Dated : 11/11/2025 Patel/Sr. PS Printed from counselvise.com Rajeev Sharma ITA No. 837/Ind/2024 - AY 2012-13 Page 4 of 4 Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "