DY. COMMISSIONER OF INCOME TAX, AGRA vs. PEGASUS AGRO INDUSTRIES PRIVATE LIMITED, AGRA

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.

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.

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.

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.

The appeal stand dismissed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.