MINA PRADHAN,KOLKATA vs. I.T.O., WARD - 42(4), KOLKATA, KOLKATA

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ITA 1588/KOL/2024Status: DisposedITAT Kolkata27 November 2024AY 2018-2019Bench: SRI SANJAY GARG, JUDICIAL MEMBER & SRI RAKESH MISHRA (Accountant Member)10 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that Section 69C is for unexplained expenditure not recorded in books, and thus incorrectly applied to sales transactions. It directed that only a profit element (commission) on these accommodation sales should be added to the income.

What were the facts?

The assessee booked purchases from M/s Sakaar Infra Nirman Pvt. Ltd. (SINPL), which were later admitted to be accommodation entries. The Assessing Officer treated these as unexplained expenditure under Section 69C, while the assessee argued it was only for earning commission.

What were the issues?

Whether Section 69C is applicable to accommodation sales, and if not, what is the correct method to tax the profit element of such transactions.

Which sections of the Income-tax Act were involved?

Section 69C,Section 143(3),Section 148,Section 115BBE,Section 271AAC(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA

Before: SRI SANJAY GARG & SRI RAKESH MISHRA

order

: November 27th, 2024 ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

1.

The captioned appeals filed by the assessee are against separate orders of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as ld. 'CIT(A)'] for AY 2017-18 and AY 2018-19 dated 25.06.2024. As the issues in both the appeals are common, they are being decided vide this common order for the sake of convenience and brevity.

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