ACIT Vs Federal Agro Industries Pvt. Ltd. (ITAT Agra)
Factory on Rent, Not Doing Business: Purchases Belong to Tenant, Not Landlord-Assessee Wrong- Cut Paste Addition Fails Assessee, Wrong Purchases: ITAT Agra Dismisses Revenue Appeals in Meat-Purchase Case
Revenue challenged deletion of additions of ₹2,50,58,565/- made by AO treating purchases of ‘Raw Boneless Meat’ as bogus. Tribunal noted that AO had merely reproduced the enquiries, 133(6) replies, & allegations of round-tripping from the assessment of HMA Agro Industries Ltd, without establishing that Federal Agro itself made any purchases. Assessee demonstrated that its factory premises were leased to HMA Agro, that HMA Agro alone ran operations & booked all meat purchases in its own Punjab unit’s accounts, while Assessee only earned rent.
CIT(A) accepted this factual matrix & found that no such purchases appeared in Assessee’s books at all, making addition wholly unfounded. Tribunal held that AO proceeded on wrong facts & wrong assessee, appreciated CIT(A)’s reasoning, and found no basis to interfere. Consequently, Revenue’s appeals for all three years were dismissed mutatis mutandis.
FULL TEXT OF THE ORDER OF ITAT AGRA
1. These appeals are filed by the assessee against the order of ld. Commissioner of Income-tax (Appeals), Kanpur – 4 dated 28.03.2025 for Assessment Years 2020-21, 2022-23 & 2023-24.
