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Facts
The assessee's appeal arose from an order upholding an addition of Rs. 5,17,150/- made by the revenue authorities. The addition was for alleged commodities profits derived from a private limited company after modifying a client code. The revenue initiated reassessment proceedings under Section 147.
Held
The Tribunal held that the revenue failed to provide any indication or proof that the assessee had actually derived the income. No such entry was found or proven in the assessee's books. Therefore, the addition was deleted.
Key Issues
Whether the addition of Rs. 5,17,150/- as alleged commodities profit is sustainable without any evidence or proof in the assessee's books, especially when reassessment proceedings were initiated.
Sections Cited
143(3), 147, 148
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2011-12 Praveen Jain HUF, Vs Income Tax Officer, H. No. 1258, Sector-14, Ward-2(1), Faridabad, Haryana-121002 Faridabad, Haryana-121001 (APPELLANT) (RESPONDENT) PAN No. AAAHP7961D Assessee by: Sh. R. R. Maurya, Adv. Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 01.07.2025 Date of Pronouncement: 01.07.2025 ORDER
This assessee’s appeal for Assessment Year 2011-12, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2023-24/1053213026(1) dated 26.05.2023, in proceedings u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
A perusal of the assessee’s instant appeal file indicates at the outset that both the learned lower authorities have held it to have derived an amount of Rs.5,17,150/- representing commodities profits; from M/s R. K. Commodities Services Pvt. Ltd., in the relevant previous year after having modified the corresponding client code in the National Multi Commodities Exchange (NMCE) herein. Both the learned lower authorities Praveen Jain HUF accordingly took recourse to setting into motion of section 148/147 proceedings thereby adding the aforesaid amount in the course of assessment framed on 14.12.2018 and upheld in the lower appellate discussion. This is what leaves the assessee aggrieved.
I have given my thoughtful consideration to the assessee’s and the Revenue’s respective stands all along. The department could hardly dispute the clinching fact emerging from the case file that there is not even an indication and to in what manner the assessee had derived the above income as no such entry has been found or proved in it’s books or otherwise: as the case may be. This tribunal therefore sees no merit in the impugned addition of Rs.5,17,150/- which is hereby deleted in very terms. The same reasoning follows for corresponding alleged commission component as well. Ordered accordingly.