SAURABH SAHU,JHANSI V. ASSESSMENT UNIT, JHANSI

ITA 168/AGR/2024

AI Insights

The case involves an appeal by Sh. Saurabh Sahu against the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi, which was passed on 27-02-2024. The appeal pertains to the assessment year 2020-21, where the Assessing Officer had made various additions to the income declared by the assessee, including additions for unsecured loans, capital account, and disallowances under section 40(a)(ia) of the Income Tax Act. The Tribunal, after considering the submissions and the records, decided to restore some issues back to the CIT(A) for further examination, particularly concerning the unsecured loans and the capital account additions. Additionally, the Tribunal modified the extent of disallowance on certain expenses.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126483 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE; SHAILENDER SHRIVASTAVA LD
• Keywords: Satisfaction; Disallowance of expense; Commissioner; Commissioner of Income Tax; Statistical purposes
• Section: 143(3); 40(a)(ia)

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. 168/Agr/2024 (िनधा \u0010रणवष\u0010 / Assessment Year: 2020-21) Sh. Saurabh Sahu 207/1, outside Khanderao Gate Jhansi (UP). बनाम/ Vs. Income-tax Officer, Ward 3(3), Jhansi. \u0002थायीलेखासं./जीआइआरसं./PAN/GIR No. DEHPS-8342-H (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : None थ कीओरसे/Respondent by : Sh. Shailender Shrivastava – Ld. DR सुनवाईकीतारीख/Date of Hearing : 18-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2020-21 arises out of an order passed by of learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 27-02-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 20-09-2022. At the time of hearing, none appeared for assessee and accordingly, the appeal was heard with the able assistance of Ld. Sr. DR. Having considered case records, our adjudication would be as under. 2. In the assessment order, Ld. AO assessed total income of Rs.323.80 Lacs after various additions as against returned income of Rs.32.25 Lacs. The addition was made for unsecured loans, additions in capital account, disallowance u/s 40(a)(ia) and disallowance of expenses. Upon further appeal, Ld. CIT(A) allowed partial relief against which the 2 assessee is in further appeal before us on the issue of addition of unsecured loans for Rs.245.50 Lacs, addition of capital account for Rs.4 Lacs and disallowance of expenses for Rs.9.38 Lacs. 3. On the issue of unsecured loans, the assessee stated that opening unsecured loans were Rs.148.50 Lacs and fresh loans received during the year were Rs.117 Lacs. During first appeal, the assessee filed confirmation of the lenders. However, Ld. CIT(A) confirmed the addition against which the assessee is in further appeal before us. It emerges that fresh loans taken during the year are Rs.117 Lacs for which the assessee was required to establish the satisfaction of ingredients of Sec.68. Apparently, the assessee has furnished partial details. With a view to enable the assessee to plead and prove its case, we restore this issue back to the file of Ld. CIT(A) for fresh adjudication with a direction to the assessee to substantiate its case. This ground stand allowed for statistical purposes. 4. The Ld. CIT(A) confirmed addition to capital account for Rs.4 Lacs which represent personal loan taken from Prem Lata Updhyay. The assessee did not furnish any evidence in support of the same. Considering this fact, we restore this issue back to the file of Ld. CIT(A) for fresh adjudication with a direction to the assessee to substantiate its case. This ground stand allowed for statistical purposes. 5. The Ld. CIT(A) confirmed adhoc disallowance of discount and godown expenses @20% against which the assessee is in further appeal before us. In our opinion, 20% estimation is on higher side. We direct Ld. AO to restrict the same to the extent of 5% only. This ground stand partly allowed. 3 6. The appeal stand partly allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) 5ा ियक सद6 /JUDICIAL MEMBER लेखा सद6 /ACCOUNTANT MEMBER Dated: 22.04.2025 आदेश की 8ितिलिप अ:ेिषत / Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु3/CIT 4. िवभागीय ितिनिध/DR 5. गाड9फाईल/GF ASSISTANT REGISTRAR ITAT AGRA "