KRISHNA OILS AND CHEMICALS PRIVATE LIMITED,DELHI vs. ITO WARD 2 DIMAPUR, DIMAPUR

ITA 318/GTY/2025Status: DisposedITAT Guwahati17 July 2026AY 2018-198 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee had not furnished a valid contract and that the genuineness of the transaction was not adequately proved. However, considering the totality of facts and the assessee's request, the case was remitted back to the CIT(A) for fresh adjudication.

What were the facts?

The assessee received an advance of Rs. 12,00,000/- for sale of lubricants, which was later cancelled. The assessee claimed to have returned Rs. 1,00,000/- to the original party and Rs. 11,00,000/- to a third-party financial advisory firm as per the direction of the original party. The Assessing Officer added the Rs. 11,00,000/- to the assessee's income under Section 68, and the CIT(A) dismissed the appeal.

What were the issues?

Whether the addition made under Section 68 for an advance received and allegedly repaid to a third party, without a clear contract, is justified. Whether the CIT(A) erred in dismissing the appeal without granting further opportunity to substantiate the claim.

Which sections of the Income-tax Act were involved?

Section 68,Section 147,Section 148,Section 144,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, GUWAHATI “DB” BENCH

Before: SHRI DUVVURU RL REDDY & SHRI LAXMI PRASAD SAHU

For Appellant: Shri Mohit Choudhary, AR
For Respondent: Shri Santosh Kumar Karnani, Add. CIT
Hearing: 02.07.2026Pronounced: 17.07.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER:

This appeal is filed by the Assessee against the order of the NFAC, Delhi [“the Ld. CIT(A)”, for short], dated 24.09.2025 with DIN & Order No: ITBA/NFAC/S/250/2025-26/1081123189(1) passed u/s 250 of the Income Tax Act, 1961 (“the Act”, for short) for the assessment year 2018-19. Krishna Oils and Chemicals Private Limited; A.Y: 2018-19

2.

Briefly stated, the facts of the case are that, the main grievance of Assessee is not allowing the Appeal filed by the Assessee and order passed by the Assessing Officer u/s 147 r.w.s. 144 of the Act dated 21.03.2023 with made an addition of Rs.11,00,000/- u/s 68 of the

The order continues below.

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