Om Kiran Ispat Udyog vs. DCIT, Central Circle 1

Parties Involved

Facts Summary

The assessee, Om Kiran Ispat Udyog, a manufacturer of steel products, filed its Income Tax Return for the Assessment Year 2020-21 on 06.01.2021, declaring income of Rs.51,39,500/-. During the relevant year, the assessee was surveyed under section 133A of the Income Tax Act, 1961, and incriminating material was impounded. The Assessing Officer show-caused the assessee to explain unsecured loans received during the relevant year, which the assessee failed to do satisfactorily. Consequently, the Assessing Officer taxed the loan of Rs.80,90,000/- under section 68 r.w.s. 115BBE of the Act. During the survey, cash transactions aggregating to Rs.3,47,69,810/- were seized from a commission agent, Shri Santosh Kumar Agrawal, who admitted to making these transactions on behalf of the assessee. The assessee admitted to making these purchases/sales but offered only profit of Rs.24,73,706/-. The Assessing Officer taxed the entire unaccounted sales aggregating to Rs.3,22,96,104/-. The assessee filed a belated appeal against the order of the Commissioner of Income Tax (Appeals), Raipur, which was dismissed for non-condonation of delay.…

Legal Issues

• 1. Non condonation of 114 days’ delay in filing the appeal before the CIT(A);
• 2. Non admission of appeal for adjudication of the case on merit;
• 3. Taxability of Rs.80,50,000/- u/s 68 r.w.s. 115BBE of the Act;
• 4. Taxability of sum of Rs.3,22,96,104/- u/s 69A r.w.s. 115BBE of the Act.
• 5. Initiation of penalty proceedings.

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Ashish Gupta Vs. Deputy Commissioner of Income Tax, Circle-8, New Delhi

  Delhi Bench ‘A’ benchAY 2018-19Allowed

• Santosh Laujari Gupta Vs ITO – 33(3)(3)

  SMC Bench, Mumbai benchAY 2009-10Partly Allowed

• Yogesh Pruthi Vs ACIT, Circle-43(1), New Delhi-110002

• Rakesh Patel vs. ITO, Ward 60(8), New Delhi

  Delhi bench

• Boyina Vinoda vs. Income Tax Officer

  Visakhapatnam bench

• Chander Bhan Yogesh Kumar Vs. Principal Commissioner of Income Tax, Delhi-10

  Delhi Bench 'C', Delhi benchAY 2018-19Allowed