SHRI INDRA SCIENTIFIC GLASS WORKS,FIROZABAD V. ACIT/DCIT CEN CIR AGRA, AGRA

ITA 424/AGR/2025

AI Insights

The case involves Shri Indra Scientific Glass Works, the appellant, contesting an addition made under section 69 of the Income Tax Act by the Income Tax Officer, Central Circle, Agra, regarding unexplained cash payments for stamp duty on a land purchase. The assessee argued that the cash used for the stamp duty was from documented bank withdrawals, which was not accepted by the lower authorities. The Tribunal, upon reviewing the documents and submissions, found that the assessee had indeed explained the source of the cash used for the stamp duty, leading to the allowance of the appeal and deletion of the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785584 (ITAT-AGRA)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 28-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SRIVASTAVA
• Assessee Lawyers: RAJESH MALHOTRA
• Section: 69

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “SMC”: AGRA SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND BEFORE SHRI SUNIL KUMAR SINGH, ACCOUNTANT MEMBER (Through virtual hearing) ITA No.424/AGR/2025 (Assessment Year: 2013-14) Shri Indra Scientific Glass Works, A-11, Industrial Estate, Firozabad, Uttar Pradesh Vs. Income Tax Officer, ACIT/ DCIT, Central Circle, Agra (Appellant) (Respondent) PAN: AATFS1526N Assessee by : Shri Rajesh Malhotra, CA Revenue by: Shri Shailendra Srivastava, Sr. DR Date of Hearing 15/10/2025 Date of pronouncement 30/10/2025 O R D E R PER SHRI S. RIFAUR RAHMAN: 1. This appeal has been filed by the Assessee against the order of the ld. Commissioner of Income Tax (Appeals), Kanpur-4 [“Ld. CIT(A)”, for short], dated 16.07.2025 for Assessment Year 2013-14. 2. At the time of hearing, the ld AR brought to our notice that assessee has purchased plot at Industrial area for the value of Rs. 1,56,90,000/-. In this regard he brought to our notice page 8 of the Paper Book wherein the value of the land was recorded in the fixed asset schedule and further he brought to our notice page 13 of the Paper Book wherein assessee has withdrawn the cash of Rs. 8 lakhs each by enchasing the Cheque No. 303361, 303362, 303363 on 22.10.2012 and he also brought to our notice page 14 of the Paper Book wherein the assessee has paid the stamp duty in cash for Printed from counselvise.com ITA No.424/AGR/2025 Shri Indra Scientific Glass Works Page | 2 payment of stamp duty for purchase of the above said land for the value of Rs. 25,90,000/- on 25.10.2012. Further, he also brought to our notice page 19 of the Paper Book wherein bank statement is enclosed and he brought to our notice the assessee has withdrawn cash on 22.10.2012. Therefore, he submitted that the cash payment of Rs. 25,90,000/- was also explained and it is out of cash withdrawal from the bank. He submitted that the similar materials were already brought to the notice of the ld AO and CIT(A), the explanation offered by the assessee were not accepted by them and proceeded to make addition u/s 69 of the Act. In this regard he brought to our notice the assessment order and appellate order, which is placed on record. 3. On the other hand the ld DR relied on the findings of the lower authorities. 4. Considered the rival submissions and materials available on record. We observed that the assessee has purchased land in industrial area and for the purpose of registration the assessee has paid for the cost of stamp duty by cash to the extent of Rs. 25,90,000/- and assessee has brought to our notice that assessee has withdrawn the cash to the extent of Rs. 24 lakhs on 22.10.2012 from Bank account and he also brought to our notice cash book maintained by the assessee and to the extent of additional payment of Rs. 1,90,000/- was out of cash balance maintained by the assessee. Therefore, to the extent of stamp duty paid by the assessee by cash is already explained by the assessee. Therefore, the addition proposed by the lower authorities is not justified and accordingly, directed to be deleted. Printed from counselvise.com ITA No.424/AGR/2025 Shri Indra Scientific Glass Works Page | 3 5. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 30/10/2025. -Sd/- -Sd/- (SUNIL KUMAR SINGH) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:/10/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "