INCOME TAX OFFICER, DHANBAD vs. NEELKANTH ORES PRIVATE LIMITED, DHANBAD

ITA 65/RAN/2026Status: DisposedITAT Ranchi25 September 2026AY 2018-195 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the order of the Ld. CIT(A) and dismissed the appeal of the Revenue. The Tribunal found that it was the duty of the Revenue to show that there was some evidence in its possession indicating that the assessee had actually entered into a transaction with M/s. Rajshree Vanijya Udyog. The Revenue had not confronted the assessee with such information. The Tribunal held that merely stating that the assessee was a beneficiary of bogus entries was insufficient to conclude that the assessee was involved in transactions with a bogus entity. Therefore, the Tribunal found no error or infirmity in the order of the Ld. CIT(A) and upheld it. The addition made by the Assessing Officer was deleted.

What were the facts?

The Revenue (Income Tax Officer, Dhanbad) is in appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, for Assessment Year 2018-19. The NFAC had deleted an addition of Rs. 1,35,01,215/- made by the Assessing Officer. The addition was based on information from the 'insight' portal indicating that M/s. Rajshree Vanijya Udyog was involved in issuing fraudulent invoices without actual supply of goods or services. The assessee, Neelkanth Ores Private Limited, was alleged to be one such entity in whose name invoices totaling Rs. 1,35,01,215/- were issued. The assessee denied any transaction with M/s. Rajshree Vanijya Udyog. The Assessing Officer initiated proceedings under Section 147 read with Section 144B of the Income Tax Act, 1961, and made the addition under Section 69C for unexplained expenditure, as the assessee failed to furnish documentary evidence to disprove the purchases.

What were the issues?

1. Whether, on the facts and in law, the deletion of the addition of Rs. 1,35,01,215/- by the Ld. CIT(A) is sustainable, considering the assessee's contention that it was not involved in the transaction with M/s. Rajshree Vanijya Udyog, despite the transaction appearing in its GSTR 2 and audited books of accounts? (Question of law and fact, relating to Section 69C of the Income Tax Act, 1961). 2. Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) failed to appreciate that the assessee's denial of purchase from M/s. Rajshree Vanijya Udyog lacks credibility, as the assessee never challenged the purchase before any competent authority or the seller? (Question of law and fact). Assessee's contentions: The assessee argued that it had never indulged in any transaction with M/s. Rajshree Vanijya Udyog. Since no transaction occurred, it was impossible for the assessee to establish the genuineness of a non-existent transaction. The onus was on the Revenue to provide evidence of accommodation entries or transactions with the bogus entity. Revenue's contentions: The Revenue supported the Assessing Officer's order, arguing that the transaction appeared in the assessee's GSTR 2 and audited books. The assessee's denial lacked credibility as it did not challenge the purchase before any competent authority or the seller.

Which sections of the Income-tax Act were involved?

Section 69C,Section 147,Section 148,Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: SHRI RATNESH NANDAN SAHAY & SMT. RAJANI GUDURI

For Appellant: Shri P.K. Himmat Singhka, C.A
For Respondent: Md. Shadab Ahmed, CIT-DR, Shri P.K. Himmat Singhka, C.A
Hearing: 08/09/2026Pronounced: 25/09/2026

PER: BENCH

1.

This appeal by the revenue is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi (in short, the ld. CIT(A) dated 29/10/2025 for the Assessment Year (AY) 2018-19 wherein the revenue has raised following grounds of appeal:

"

1.

That on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 1,35,01,215/- by accepting the contention of the assessee company that it was not involve in the transaction with M/s. Rajashree Vanijya Udyog. However, this transaction was already appearing in its GSTR 2 at the time of filing its return of income and a

The order continues below.

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