ANIL KUMAR TIWARI,DELHI vs. INCOME TAX OFFICER WARD 60(4) DELHI, NEW DELHI

ITA 4971/DEL/2026Status: DisposedITAT Delhi29 September 2026AY 2012-133 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition of Rs. 8,28,136/- made by the AO under Section 69C was not warranted. The Tribunal found merit in the assessee's submissions, noting that the assessee is an IRCTC ticket booking agent and explained his business model: booking tickets for customers using his credit card and receiving cash reimbursement, which was then used to pay the credit card bills. The Tribunal perused the credit card statements for AY 2011-12 and observed that payments were substantially for purchasing railway tickets from the IRCTC portal. The assessee earns commission on these bookings. The Tribunal concluded that the payments made towards credit card bills were purely for business purposes and the assessee had discharged his onus of proving this. Consequently, both additions made by the AO were directed to be deleted. The impugned order of the CIT(A) was set aside.

What were the facts?

The assessee, Anil Kumar Tiwari, is an authorized IRCTC ticket booking agent. For Assessment Year 2012-13, the Assessing Officer (AO) made an addition of Rs. 8,28,136/- under Section 69C of the Income Tax Act, 1961, and an addition of Rs. 29,486/- representing TDS reflected in Form 26AS. The assessee's business model involves booking railway tickets for customers using his HDFC Bank Credit Card and receiving reimbursement in cash from customers. The assessee claims the credit card payments were for purchasing tickets on behalf of customers, and the cash received was used to pay the credit card bills. The assessee submitted credit card statements for FY 2011-12 to substantiate this. The assessee appealed to the Additional/Joint Commissioner of Income Tax (Appeals), who upheld the AO's additions. The present appeal is filed by the assessee against the CIT(A)'s order.

What were the issues?

1. Whether the addition of Rs. 8,28,136/- made by the Assessing Officer under Section 69C of the Income Tax Act, 1961, is justified, considering the assessee's explanation of his business model as an IRCTC ticket booking agent? Assessee's Contention: The assessee argued that the payment of Rs. 8,28,136/- towards credit card bills was for the purchase of railway tickets for customers, and the cash received from customers was used to clear these bills. The assessee submitted credit card statements to demonstrate that payments were for IRCTC ticket bookings. The lower authorities failed to appreciate this business model. Revenue's Contention: The revenue, through the Sr. DR, placed reliance on the orders of the Assessing Officer and the CIT(A).

Which sections of the Income-tax Act were involved?

Section 69C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI VIKAS AWASTHY

For Respondent: Shri Nirmal Nangia, Sr.DR

PER VIKAS AWASTHY, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of Additional/Joint Commissioner of Income Tax (Appeals), Aurangabad [in short ‘the CIT(A)’] dated 04.03.2026, for Assessment Years 2012-13. 2. Shri Saksham Garg, appearing on behalf of the assessee submits that the assessee is a authorized IRCTC ticket booking agent, earning commission on booking of railway tickets through the IRCTC portal. The assessee m

The order continues below.

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