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Prabha Trading Corporation Vs. Income Tax Officer, Ward-40(1), Kolkata

Case No: I.T.A. No.: 2119/KOL/2024
Court: Income Tax Appellate Tribunal, Kolkata ‘A’ Bench, Kolkata
Date: 9/2/2025

Parties Involved

AppellantPrabha Trading Corporation
RespondentIncome Tax Officer, Ward-40(1), Kolkata

Facts Summary

The assessee, Prabha Trading Corporation, filed an income tax return for Assessment Year 2016-17 declaring a total income of Rs 236,280/-. The return was selected for limited scrutiny under CASS. The assessee is a distributor of paper for paper mills in India and has two types of transactions with these mills. The assessment was made at a total income of Rs 58,61,610/- by making additions on account of commission expenses and suppression of commission income. Aggrieved by the assessment order, the assessee appealed to the Commissioner of Income Tax (Appeals)-NFAC, Delhi, who deleted the addition of Rs 35,66,813/- on account of excess commission paid but confirmed other additions, including Rs 19,50,803/- on account of undisclosed commission income. The assessee then filed an appeal before the Tribunal.

Decision in favour of

Assessee

Legal Issues

  • 1. Confirmation of addition of Rs. 35,66,813/- on account of excess commission paid.
  • 2. Confirmation of addition of Rs. 19,50,803/- on account of undisclosed commission income.
  • 3. General grounds for amendment or alteration of any grounds of appeal.

Judgment Outcome

Decided in favour of Assessee.

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