VIMAL MISHRA,VARANASI V. INCOME TAX OFFICER CIRCLE -3 VARANASI, VARANASI

ITA 110/VNS/2024

AI Insights

The case involves an appeal by Vimal Mishra against the order of the Commissioner of Income Tax (Appeals) which confirmed an addition of Rs.3,38,492 to the assessee's income for the assessment year 2014-15. The addition was made on account of unverifiable sundry creditors, estimated at 10% of the total sundry creditors amounting to Rs.33,84,929. The assessee argued that all transactions were made through cheques and that confirmatory statements of accounts were provided. The Tribunal, upon reviewing the materials and hearing the Departmental Representative in the absence of the assessee, concluded that the addition was made without a proper basis and directed its deletion.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826239 (ITAT-VARANASI)
• Duration Of Justice: 1 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 26-06-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G. P. SINGH
• Keywords: Set aside; Bogus
• Section: 143(3)

Judgement Text

"I.T.A. No.110/VNS/2024 Assessment Year:2014-15 1 IN THE INCOME TAX APPELLATE TRIBUNAL VARANASI CIRCUIT BENCH ‘SMC’, VARANASI BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.110/VNS/2024 Assessment Year:2014-15 Vimal Mishra 2/91 Namak Bazar, Ramnagar, Varanasi-221008 PAN:ACXPM8696H Vs. Income Tax Officer, Circle-3, Varansi. (Appellant) (Respondent) O R D E R (A) This appeal vide I.T.A. No.110/VNS/2024 has been filed by the assessee for assessment year 2014-15 against impugned appellate order dated 18/06/2024 (DIN & Order No.ITBA/NFAC/S/250/2024- 25/1065716083(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. The grounds raised by the assessee are as under: “1. Because, the Ld. Commissioner of Income Tax (Appeals) was not justified and confirmed the addition merely on the ground that the appellant has not filed original copy of creditors, though all the transaction has been made through cheque. As mentioned in the order as well as the submissions of the appellant and has wrongly confirmed the addition Appellant by None (Application) Respondent by Shri G. P. Singh, Sr. (D.R.) Printed from counselvise.com I.T.A. No.110/VNS/2024 Assessment Year:2014-15 2 Rs.3,38,492.00, on the estimate basis @10% of sundry creditors Rs 3384929.00 2. Because, the Ld. Commissioner of Income Tax (Appeals) was not justified to consider the documents which has duly been submitted along with submissions and invoice no., date and payment details has already mentioned and also submitted the confirmatory statement of account duly signed by the party. 3. Because, the appellant craves for a right to raise any additional ground during the course of hearing of the case. 4. Because the order passed by the Ld. Commissioner of Income Tax Appeal to confirm the action of the Assessing officer is erroneous, bad in law and on facts and is liable to be deleted.” (B) The facts of the case, in brief, are that the assessee is an individual and filed his return of income on 03/11/2024 declaring total income of Rs.18,85,380/-. The Assessing Officer completed the assessment and passed assessment order under section 143(3) of the I. T. Act on 20/12/2016 and determined the total income of the assessee at Rs.22,23,872/- (rounded off to Rs.22,23,870/-) and made an addition of Rs.3,38,492/- on account of unverifiable sundry creditors. Being aggrieved, the assessee filed appeal in the office of learned CIT(A). Vide impugned appellate order dated 18/06/2024, the assessee’s appeal was dismissed by the learned CIT(A). Now the assessee is in appeal before the Income Tax Appellate Tribunal. (C) During the course of hearing none was present on behalf of assessee. In the absence of any representation from assessee’s side, learned Departmental Representative was heard and materials on records were perused. Perusal of records shows that the disallowance has been made on ad hoc basis merely based on surmises, guess work and imagination. No basis of estimation has been provided by either the learned CIT(A) or by the Printed from counselvise.com I.T.A. No.110/VNS/2024 Assessment Year:2014-15 3 Assessing Officer to justify disallowance @10%. No finding has been given by them, to explain how section 47(1) of ITAT, which is the relevant on this issue, has any applicability in the present case. No finding has been given either by the Assessing Officer or by the learned CIT(A) with respect to any specific sundry creditor to show that the sundry creditor on the books of the assessee was/were bogus. In view of the foregoing, the Assessing Officer is directed to delete the addition of Rs.3,38,492/- made on account of sundry creditors. The impugned order of the learned CIT(A) is set aside and the assessee’s appeal is allowed. (D) In the result, the appeal of the assessee stands allowed. (Order pronounced in the open court on 05/01/2026) Sd/. (ANADEE NATH MISSHRA) Accountant Member Dated:05/01/2026 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T. Printed from counselvise.com "