ACIT, GUWAHATI vs. UMESH KUMAR BERIYA, GUWAHATI, ASSAM,

ITA 362/GTY/2025Status: DisposedITAT Guwahati27 August 2026AY 2022-2331 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that income offered under Section 41(1) as remission of liability from bogus creditors, which was admitted as undisclosed income during search, is not eligible for deduction under Section 80IE. The CIT(A)'s order allowing the deduction was reversed.

What were the facts?

During a search operation, the assessee admitted to having bogus sundry creditors amounting to Rs. 15,01,52,418/- as undisclosed income. The Assessing Officer made an addition based on this admission. The CIT(A) allowed a deduction under Section 80IE on this amount.

What were the issues?

Whether remission of liability from bogus creditors, admitted as undisclosed income, qualifies for deduction under Section 80IE. Whether such income is considered 'profits and gains derived from eligible business' for Section 80IE.

Which sections of the Income-tax Act were involved?

Section 41(1),Section 80IE,Section 132(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, GUWAHATI

For Respondent: Shri Santosh Kumar Karnani, DR
Hearing: 16.07.2026Pronounced: 27.08.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

This appeal is filed by the Revenue against the orders passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Commissioner of Income Tax, Appeal, CIT(A), Central NER, Guwahati [hereinafter referred to as “the Ld. CIT(A)] dated 17.09.2025, DIN & Order

2 UMESH KUMAR BERIYA A.Y. 2022-23 No: ITBA/APL/S/250/2025-26/1080840584(1). The revenue has raised following grounds of appeal:

“1. Whether, on the facts and in the circumstances in deleting the addition of the case and in law, the Ld. CIT(A) erred made by the Assessing Offic

The order continues below.

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