DEPUTY COMMISSIONER OF INCOME TAX, BHOPAL vs. SHREE SAMRIDDHI TRADERS, UJJAIN

ITA 896/IND/2025Status: DisposedITAT Indore13 July 2026AY 2022-2354 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A) was justified in deleting the addition under Section 68 as the assessee had provided sufficient evidence for the source of capital. It further held that partner remuneration within the limits of Section 40(b) is allowable and Section 40A(2) is not applicable in such cases.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting additions made under Section 68 for capital introduced by partners and disallowances of partner remuneration. The assessee provided explanations and documentary evidence for the capital introductions and argued that partner remuneration, if within Section 40(b) limits, is allowable.

What were the issues?

Whether additions under Section 68 for partner capital are justified when evidence is provided, and whether partner remuneration within Section 40(b) limits can be disallowed under Section 40A(2).

Which sections of the Income-tax Act were involved?

Section 68,Section 40(b),Section 40A(2)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण, इंदौर "यायपीठ, इंदौर In The Income Tax Appellate Tribunal, Indore Bench, Indore Before Dr. Arjun Lal Saini, Accountant Member And Shree Paresh M. Joshi, Judicial Member आयकरअपीलसं./ITA No. 896/IND/2025 [ "नधा"रणवष"/Assessment Year: 2022-23 ] Deputy Commissioner Of Income Tax, Shree Samriddhi Traders, Aaykar Bhawan, 2nd Floor, 48 Arera Vs. 91, Nai Sadak, New Road, Hills, Hoshangabad Road, Bhopal, Ujjain Madhya Pradesh-462011 Madhya Pradesh-456006 "थायीलेखासं./जीआइआरसं./PAN/GIR No.: AEEFS2074Q (अपीलाथ"/Appellant) (""यथ"/Respondent) Appellant by : Shri S. S. Deshpande, CA Respondent by : Shri Anup Singh, Ld. CIT DR Date of Hearing : 10/06/2026 13/07/2026 Date of Pronouncement :

:: ORDER :: Per, Bench:

Captioned appeal filed by the Revenue, pertaining to Assessment Year 2022- 23, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by Commissioner of Income-tax (Appeals), dated 01.07.2025, which in turn arises out of an assessment order passed by the Assessing Officer u/s 147 r.w.s. 143(3) of the Act, on 27.03.2024. 2. The grounds of appeal raised by the Revenue are as follows:

“1. Whether the L

The order continues below.

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