R.S.JHAVERI & CO.,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE–1, AURANGABAD

ITA 2441/PUN/2025Status: DisposedITAT Pune18 August 2026AY 2014-1541 pages
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What were the facts?

The assessee, a partnership firm, received Rs. 6 crores for relinquishing its agency business. The Assessing Officer treated this as revenue receipt and made an addition to the total income. The assessee claimed it as a capital receipt.

What did the Tribunal hold?

The Tribunal held that the issue of the nature of receipt (capital vs. revenue) was decided in favour of the assessee in a related appeal. For the disallowance of commission, the matter was restored to the Assessing Officer for further verification.

What were the issues?

The primary issues were the taxability of the amount received for relinquishing agency business and the allowability of commission expenses.

Which sections of the Income-tax Act were involved?

Section 28(va),Section 56,Section 50B,Section 2(42C),Section 132,Section 132(4),Section 143(2),Section 142(1),Section 153A,Section 69,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

Before: SHRI R. K. PANDA & Ms. ASTHA CHANDRA

For Appellant: Shri Mayank Patawari, Shri Manish Reshamwala and Ms. Karishma Rathore
For Respondent: Shri Amit Bobde, CIT-DR

PER R.K. PANDA, VP:

The above 2 appeals filed by the assessee are directed against the separate orders dated 02.09.2025 of the Ld. CIT(A), Pune-12 relating to assessment years 2014-15 and 2016-17 respectively. Since identical grounds have been raised in both the appeals, therefore, these appeals were heard together and are being disposed of by this common order for the sake of convenience.

2.

Facts of the case, in brief, are that the assessee is a partnership firm engaged in the business of steel plates. The said firm is having agency of Dillinger GTS Ventes (DGV) which is a foreign company and the said

The order continues below.

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