DY. COMMISSIONER OF INCOME TAX, AGRA vs. PEGASUS AGRO INDUSTRIES PRIVATE LIMITED, AGRA
Facts
The Revenue filed an appeal against the order of the CIT(A) which deleted an addition made by the AO. The AO alleged that the assessee received Rs. 143.95 Lacs from a dummy entity, Shri Maa Bhagwati Enterprises, as an accommodation entry. This amount was deposited in cash and transferred to the assessee company.
Held
The CIT(A) found that the undisclosed income in the hands of Shri Maa Bhagwati Enterprises was already taxed by the Settlement Board and therefore, could not be added again in the hands of the assessee to avoid double taxation. The Tribunal upheld the findings of the CIT(A).
Key Issues
Whether the same income could be added in the hands of the assessee when it has already been taxed in the hands of the alleged dummy entity, leading to double taxation.
Sections Cited
68, 143(3), 245D(4)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “DB” BENCH, AGRA
Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No.127/Agr/2024 (िनधा�रणवष� / Assessment Year: 2018-19) DCIT M/S Peggasus Agro Industries Pvt. Ltd. बनाम/ 1st Floor, Aaykar Bhawan (formerly known as BNR Overseas P. Ltd. Sanjay Place 503 Space Tower-2, Near Holy Public School Vs. Agra - 282001 Sikandra, Agra �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAGCB-5997-E (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri Shailender Shrivastava – Ld. Sr. DR ��थ�कीओरसे/Respondent by : Shri Anurag Sinha (Advocate) – Ld. AR सुनवाईकीतारीख/Date of Hearing : 18-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by Revenue for Assessment Year (AY) 2018-19 arises out of an order of learned Commissioner of Income Tax (Appeals), Kanpur [CIT(A)] dated 03-01-2024 in the matter of an assessment framed by Ld. DCIT, Central Circle, Agra u/s 143(3) of the Act on 30-12-2019. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. During assessment proceedings, it was alleged by Ld. AO that the assessee received certain amount from paper / dummy entity i.e.,
Shri Maa Bhagwati Enterprises and no business activity was carried out by that entity. The amount of Rs.143.95 Lacs was deposited in cash and thereafter, it was transferred to the assessee company. It was alleged that accommodation entry of Rs.143.95 Lacs was infused into the assessee company by making cash deposit in the account of Shri Maa Bhagwati Enterprises. 3. The Ld. CIT(A), in para 5.6, rendered a factual finding that undisclosed income in the hands of 6 applicants including Shri Maa Bhagwati Enterprises was suitably taxed in order passed by Interim Board of Settlement-VII, Chennai u/s 245D(4) and therefore, the same could not be added again in the hands of the assessee u/s 68. Therefore, the impugned addition was deleted against which the revenue is in further appeal before us. 4. The factual findings as rendered by Ld. CIT(A) remain uncontroverted before us. Once the impugned amount has been taxed in the hands of Shri Maa Bhagwati Enterprises, the same could not be added again in the hands of the assessee since the same amount would lead to double taxation which is impermissible. Accordingly, no interference is required in the impugned order. 5. The appeal stand dismissed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.
Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) �ाियक सद� /JUDICIAL MEMBER लेखा सद� /ACCOUNTANT MEMBER
Dated: 28-03-2025 आदेश की �ितिलिप अ�ेिषत / Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT AGRA
