Gita Sharma Vs. I.T.O., Ward-2(4), Durgapur

Parties Involved

Facts Summary

The assessee, Gita Sharma, runs a Petrol Pump business under the name M/s. Kamala Filling Station. She filed her income tax return showing a total income of ₹9,78,950/-. The Assessing Officer (AO) noted excess purchases in the trading account and added ₹36,46,727/- as undisclosed income under section 69A of the Income Tax Act, 1961. Additionally, an amount of ₹1,25,43,804/- was treated as undisclosed money and added to her total income. The AO assessed her total income at ₹1,71,69,481/-. Aggrieved by this, the assessee appealed to the Commissioner of Income Tax (Appeals)-NFAC, Delhi (CIT(A)), who dismissed the appeal due to non-prosecution. The assessee then appealed to the Tribunal.…

Legal Issues

• 1. Whether the purchases made through M/s Annapurna Filling Station are genuine and business-related.
• 2. Whether the payments made by Demand Drafts to BPCL are traceable and negate addition under Section 69A.
• 3. Whether the amount of ₹1,25,43,804/- represents genuine trade receivables from credit sales.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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