DCIT, Circle 4(1)(1), Aligarh. Vs. Bharat Varshney

Parties Involved

Facts Summary

The assessee, Bharat Varshney, runs a proprietary business in the name of M/s. G.M.C. Enterprises, which deals in scrap trading of ferrous and non-ferrous metals. For the assessment year 2022-23, the assessee filed his return of income declaring a total income of Rs. 31,42,150/-. The case was selected for compulsory scrutiny under CASS due to low income from TCS receipts. The Assessing Officer issued a show cause notice to the assessee regarding unexplained credits amounting to Rs. 6,77,42,657/-. The assessee appealed to the Commissioner of Income-tax (Appeals), who deleted the addition made by the Assessing Officer. The revenue then filed an appeal before the tribunal.…

Legal Issues

• 1. Whether the Commissioner of Income-tax (Appeals) erred in deleting the addition without examining the assessee's claim of a short loan of Rs. 1,61,75,000/- and its repayment.
• 2. Whether the Commissioner of Income-tax (Appeals) erred in ignoring the issue of sundry debtors to the extent of Rs. 1,65,25,255/- during the year under consideration.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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