MANIBHADRA TRACTORS,KALOL vs. WARD 1 MEHSANA, MEHSANA

PDF · subscribers
ITA 2519/AHD/2025Status: DisposedITAT Ahmedabad23 April 2026AY 2017-183 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the commission income was ancillary to the assessee's business and was already reflected in the transportation charges and dealer's commission, which were accounted for in the profit and loss statement. Therefore, the addition was not sustainable.

What were the facts?

The assessee failed to file its Income Tax Return for AY 2017-18, leading to reassessment proceedings under Section 147. The Assessing Officer made an addition of Rs. 4,87,215/- as commission income, which the CIT(A) upheld.

What were the issues?

Whether commission income, which is ancillary to the business and reflected in the profit and loss account, can be added as income from other sources. The issue also involves the validity of assessment proceedings initiated due to non-filing of return.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 139,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: Dr. BRR Kumar & Ms. Suchitra Kamble

For Appellant: Shri Chetan Agarwal, C.A
For Respondent: Shri Abhijit, Sr. D.R

आदेश/ORDER Per Suchitra Kamble, Judicial Member:

This is an appeal filed against the order dated 05-12-2025 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2017-18.

2.

The grounds of appeal are as under:- “1. The Ld. CIT(A) erred in law as well as on fact in upholding addition of Rs. 4,87,215/- made by Ld. AO being commission income added under head Income from other sources though it is ancillary to the business of assessee and has been shown as income from business and profession and credited to the profit and loss account which is available on record.”

I.T.A No. 2519/Ahd/2025 Manibhadra Tractors, A.Y. 2017-18 3. The assessee, a first, did not file its Income Tax Returns for the assessment year 2017-18. Proceedings were reopened u/s 147 of the I.T. Act, 1961 on the basis of reasons recorded. During the year under consideration, the assessee's firm made transactions totaling to Rs.5,41,34,96/- having such a huge transaction in bank account and receipt of income, the assessee was required to file return of income disclosing income earned during the year. The case was reopened u/s 147 of the Act by issuance of notice u/s 148 of the Act on 28.03.2021. In compliance with the said notice, the assessee neither filed return of income as per provisions of section 139 nor in response to the notice u/s 148 of the Act. Subsequently, various statutory notices were issued to the assessee; during the entire proceedings the assessee was non-compliant. Thereafter, the assessment was completed at an assessed income of Rs. 4,14,05,906/- u/s 147 r.w.s 144B of the Act on 29.03.2022.

4.

Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.

5.

The ld. A.R. submitted that the commission income for taxation was included directly in the income offered for taxation which can be reflected in page no 3 of the paper book. The said commission income in fact is reflected in transportation charges.

6.

The ld. D.R. relied upon the assessment order and the order of the CIT(A).

7.

We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that

I.T.A No. 2519/Ahd/2025 Manibhadra Tractors, A.Y. 2017-18 the assessee in respect of directing income related to tractors has given the details of transportation charges as well as dealer’s commission and that has been duly reflected which has been taken into account while calculating the total income by the assessee. Therefore, the addition sustained to the extent of Rs. 4,87,215/- will not sustain at all.

8.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 23-04-2026

Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 23/04/2026 TRUE COPY a.k. आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →