SPJ CARGO PRIVATE LIMITED,DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE - 22(2), DELHI

ITA 3129/DEL/2026Status: DisposedITAT Delhi25 September 2026AY 2021-225 pages
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What did the Tribunal hold?

The Tribunal observed that the AO made the addition based on a difference in bills raised by the assessee and recorded by the parties. The assessee provided explanations, including credit notes, TDS, and GST amounts, along with reconciliation statements and supporting documents. However, these facts remained unverified by the AO during the assessment. Consequently, the Tribunal remanded the issue of the addition of INR 1,48,49,064/- back to the AO. The AO is directed to examine the reconciliation statements filed by the assessee for M/s Al-Ammar Frozen Foods Exports Pvt. Ltd. and M/s. Mersel Foods Pvt. Ltd. The assessee is further directed to provide all necessary details and evidence, such as invoices, credit/debit notes, and TDS certificates, to reconcile the differences. The AO is to decide the issue in accordance with the law after verification. Grounds of appeal related to this issue were allowed for statistical purposes. Other grounds were rendered academic.

What were the facts?

The assessee, SPJ Cargo Private Limited, engaged in international logistics and cargo services, filed its return for Assessment Year 2021-22 declaring an income of INR 19,91,50,630/-. The Assessing Officer (AO) made additions including INR 64,32,564/- (commission and brokerage income treated as taxable in the current year), INR 1,48,49,064/- (difference between billed and recorded receipts from two parties), and disallowed INR 49,596/- (GST penalty interest) and INR 14,28,881.99 (balances written off). The total income was assessed at INR 22,19,10,736/-. The assessee appealed to the CIT(A), who partly allowed the appeal by allowing disallowances on expenses but sustained the addition of INR 1,48,49,064/-. The assessee is now in appeal before the ITAT.

What were the issues?

1. Whether the addition of INR 1,48,49,064/- on account of difference in business receipts with M/s Al-Ammar Frozen Foods Exports Pvt. Ltd. and M/s. Mersel Foods Pvt. Ltd. is justified, turning on the interpretation of Section 68 of the Income Tax Act, 1961 (mixed question of law and fact). Assessee's Contention: The assessee argued that the difference was explained by debit notes, GST, TDS, and credit notes. A reconciliation statement was filed to demonstrate that no difference remained when these factors were considered. The assessee relied on the reconciliation statement and supporting documents. Revenue's Contention: The Revenue supported the lower authorities' orders, stating that there was a difference in bills as per the assessee's books and as recorded by the respective parties. The Revenue contended that the assessee failed to provide a plausible explanation for the difference.

Which sections of the Income-tax Act were involved?

Section 68,Section 37,Section 143(3),Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI “G” BENCHES, NEW DELHI

Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL

For Respondent: Shri Ravinder Singh Yadav, Sr. DR

PER MANISH AGARWAL, A.M.: The present appeal is filed by assessee against the order dated 16.01.2026 passed by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld. CIT(A)”] in Appeal No. NFAC/2020-21/10213602 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 27.12.2022 passed u/s 143(3) r.w.s. 144B of the Act perta

The order continues below.

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