INCOME TAX OFFICER, BHARATPUR vs. SHIV OIL INDUSTRIES, DHOLPUR

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ITA 1486/JPR/2025Status: DisposedITAT Jaipur08 June 2026AY 2015-165 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the additions were unsustainable as the basis for reopening the assessment, which was information from the Commercial Tax Department, had ceased to exist. The CIT(A) had rightly deleted the additions.

What were the facts?

The Assessing Officer (AO) made additions for suppressed sales and unexplained investments based on information from the Commercial Tax Department. The assessee argued that the reopening of assessment was invalid as the AO lacked proper reasons and failed to provide evidence. The Sales Tax Department's proceedings against the assessee were later dropped.

What were the issues?

Whether the reopening of assessment under Section 147/148 was valid when the underlying information from the Commercial Tax Department was found to be incorrect and the proceedings were dropped.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, “A” BENCH, JAIPUR

Before: SHRI SANJAY GARG & SHRI RATNESH NANDAN SAHAY

Hearing: 26.03.2026Pronounced: 08.06.2026

P a g e | 1 ITA No. 1443, 1484 to 1486/JPR/2025 Shiv Oil Industries IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, “A” BENCH, JAIPUR BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER & SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER ITA Nos. 1443 & 1484 to 1486/JPR/2025 (Assessment Year:2013-14 to 2016-17)

Income Tax Officer, Vs. Shiv Oil Industries Bharatpur M/s Shiv Oil Industries G-70, Odella Road, RIICO, Dholpur 328001 �थायीलेखासं./जीआइआरसं./PAN/GIR No: ABGFS9864B Appellant .. Respondent

Assessee by : Sh. Rahul Pandya, Adv. Revenue by : Sh. Rajesh Ojha, CIT

Date of Hearing 26.03.2026 Date of Pronouncement 08.06.2026

O R D E R Per Sanjay Garg, Judicial Member: The captioned four appeals have been preferred by the Revenue against the separate orders of the National Faceless Appeal Centre/Ld. Commissioner of Income Tax Appeals (hereinafter referred to as “the Ld. CIT(A)”) all dated 25.08.2025 u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

P a g e | 2 ITA No. 1443, 1484 to 1486/JPR/2025 Shiv Oil Industries 2. Since the facts and issues involved in all the appeals are common and connected, hence, all the captioned appeals have been heard together and the same are being disposed of by this common order. ITA No.1443/JP/2025 for Assessment Year 2013-14 is taken as the lead case for the purpose of narration of facts.

3.

The sole and common issue involved in all these appeals is regarding the action of the ld. CIT(A) in deleting the impugned additions made by the Assessing Officer (in short, “the AO”) on account of suppressed sales, holding that the assessee had made certain purchases from his unaccounted money, which were sold unaccounted and hence, suppressed the actual sales. The Ld. AO, therefore, in the assessment order for AY 2013-14, made the impugned additions of Rs.79.94 lacs on account of suppressed profits on sales and further of Rs. 2.39 crores on account of unexplained investments in such purchase of goods/material which were sold unaccounted. Similarly for Assessment Year 2014-15, addition of Rs. 95.72 lacs was made on account of suppressed profits and further addition of Rs. 10.52 crores was made on account of unexplained investments in purchases; for A.Y 2015-16, the addition of Rs. 1.12 crores was made on account of suppressed profits on unaccounted sales and further of Rs. 22.41 crores on account of unexplained investments in such purchases. So far as Assessment Year 2016-17 is concerned, addition of Rs.1.30 crores on account of suppressed profits on unaccounted sales and further of

P a g e | 3 ITA No. 1443, 1484 to 1486/JPR/2025 Shiv Oil Industries Rs.1.74 crores on account of unexplained capital introduction for purchases was made. 4. The assessments in all these cases were reopened on the basis of information received from Commercial Tax Department that the assessee had made certain unaccounted sales for which the proceedings by the Sales Tax Department were initiated against the assessee. On the basis of said information, reopening of the assessment u/s 147/148 of the Act was made by the AO for the aforementioned assessment years and finally resulting into the impugned additions as noted above.

5.

In the appellate proceedings before the Ld. CIT(A), the assessee contended that the reopening of the assessment in these cases was bad in law, as the AO did not have any plausible reason to form the belief that the income of the assessee for the assessment years under consideration, has escaped assessment. Even the assessee requested before the Ld. CIT(A) for supply of the relevant details and evidences on the basis of which the AO formed the belief that the income of the assessee had escaped assessment, however, despite directions of ld. CIT(A) to supply such information, details and evidences to the assessee, the AO failed to supply the same. Even the assessee furnished before the Ld. CIT(A), the relevant evidences showing that the proceedings against the assessee by the Sales Tax Department were dropped, finding that there were no such suppressed sales. Even copy of the order of Rajasthan Tax Board has been produced on file, whereby, the appeals of the Sales Tax Department against the assessee

P a g e | 4 ITA No. 1443, 1484 to 1486/JPR/2025 Shiv Oil Industries have been dismissed. Therefore, the very basis, on which the AO formed the belief that the income of the assessee for the assessment years under consideration has escaped assessment, has ceased to exist. Perhaps, these facts were also in the knowledge of the AO, that is why, he did not provide the requisite documents/information to the assessee, despite being so directed by the Ld. CIT(A) during the appellate proceedings. Since the entire additions have been made by the AO on the basis of certain information gained from Commercial Tax Department and since, the such proceedings on the basis of which the assessment was reopened and impugned additions were made, stood withdrawn/dropped, hence the impugned additions being not sustainable, have rightly been deleted by the ld. CIT(A).

6.

There is no merit in these appeals of the Revenue and the same are accordingly dismissed.

Order is pronounced under provision of Rule 34 of ITAT Rules, 1963 on 08.06.2026

Sd/- Sd/- (Ratnesh Nandan Sahay) (Sanjay Garg) Accountant Member Judicial Member Dated 08.06.2026 Ganesh Kumar, Sr. PS True Copy Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

P a g e | 5 ITA No. 1443, 1484 to 1486/JPR/2025 Shiv Oil Industries By Order,

Asst. Registrar ITAT, Jaipur

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