DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, LUDHIANA, LUDHIANA vs. SANJEEV KUMAR MITTAL, SRI GANGA NAGAR

1

IN THE INCOME TAX APPELLATE TRIBUNAL
“B” BENCH, CHANDIGARH

BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT
AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आयकरअपीलसं./ ITA No.549/CHANDI/2023
(िनधाŊरणवषŊ / Assessment Year: 2019-2020)
Sh. Sanjeev Kumar Mittal
3-7, Block Area
Sri Ganganagar, Rajasthan. 335001. बनाम/
Vs.
DCIT-Central Circle-2,
Ludhiana.
̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ABBPM-9387-N
(अपीलाथŎ/Appellant)
:
(ŮȑथŎ / Respondent)
&
आयकरअपीलसं./ ITA No.550/CHANDI/2023
(िनधाŊरणवषŊ / Assessment Year: 2019-2020)
DCIT-Central Circle-2,
Ludhiana.
बनाम/
Vs.
Sh. Sanjeev Kumar Mittal
3-7, Block Area
Sri Ganganagar, Rajasthan. 335001. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ABBPM-9387-N
(अपीलाथŎ/Appellant)
:
(ŮȑथŎ / Respondent)

अपीलाथŎकीओरसे/ Appellant by : Sh. Sudhir Sehgal (Adv) – Ld. AR
ŮȑथŎकीओरसे/Respondent by :
Smt. Kusum Bansal (CIT) – Ld. DR

सुनवाईकीतारीख/Date of Hearing
:
26-03-2025
घोषणाकीतारीख /Date of Pronouncement
:
21-04-2025

आदेश / O R D E R

Manoj Kumar Aggarwal (Accountant Member)

(Appeals)-5, Ludhiana [CIT(A)] dated 02-06-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s.
153A of the Act on 29-09-2021. In the assessment order, Ld. AO made addition of Rs.317.63 Lacs which form the subject matter of cross- appeals. Having heard rival submissions and upon perusal of case records, the appeals are disposed-off as under. The registry has noted delay of 35 days in assessee’s appeal which stand condoned.
2. Pursuant to search action on assessee group on 26-02-2020, notice u/s 153A was issued to the assessee. The assessee declared income of Rs.6.95 Lacs. During search, certain incriminating documents pertaining to cash transaction was seized from the premises of the assessee. The assessee could not satisfactorily explain the same. It appeared that the assessee arranged finance for some parties and acted as broker against commission of 1% to 2%.
This document revealed that the cash was received for Rs.228.76 Lacs whereas cash was paid for Rs.317.63 Lacs. The Ld. AO added entire amount of Rs.317.63 Lacs u/s 69A. The Ld. CIT(A), considering the presumption of Sec.292C, observed that there was regular receipt and payment in cash. Therefore, the addition was to be made on the basis of peak credit. The same worked out to be Rs.95.92 Lacs and accordingly, the impugned addition was restricted to that extent. The same has led to cross-appeals before us.
3. From the facts, it clearly emerges that certain incriminating document has been found from the premises of the assessee which details receipts and payments in cash. Apparently, the assessee has 3

acted as broker for arranging finance against commission. The Ld. AR placed on record copy of order of Tribunal in assessee’s own case for AYs 2016-17 & 2017-18, ITA Nos.486 & 490/Chd/2023 dated 15-01-
2025. In these years, Ld. CIT(A) estimated commission income of 3%
of total receipts. The revenue preferred further appeals which stood dismissed by the Tribunal. This being the case, we direct Ld. AO to make similar estimation of commission income of 3% of total receipts in this year. No other ground has been urged in assessee’s appeal.
4. ITA No.550/Chandi/2023 stand dismissed. ITA No.549/Chandi/23
stand partly allowed.
Order pronounced on 21-04-2025. (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL)
VICE PRESIDENT लेखासद˟ /ACCOUNTANT MEMBER

Dated: 21-04-2025. आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to :
1. अपीलाथŎ/Appellant
2. ŮȑथŎ/Respondent
3. आयकरआयुƅ/CIT
4. िवभागीयŮितिनिध/DR
5. गाडŊफाईल/GF