DCIT Vs Surya Vanijya P. Ltd (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT), Delhi Bench, in its order pronounced on February 7, 2025, dismissed an appeal by the Income Tax Department while simultaneously dismissing an appeal by Surya Vanijya P. Ltd. The Tribunal upheld the Commissioner of Income Tax (Appeals) [CIT(A)] decision to delete a protective addition of ₹15.23 crore made by the Assessing Officer (AO) but confirmed the addition of ₹38.07 lakh on account of unexplained commission expenditure.
The case pertains to Assessment Year 2014-15 and stems from a search and seizure operation conducted under Section 132 of the Income Tax Act, 1961, at the business premises of Priya Gold Group of Companies on December 16, 2014. During the investigation, it was found that Surya Vanijya P. Ltd. (the assessee company) had allegedly provided an accommodation entry in the form of share capital/share premium amounting to ₹15,23,00,000 to M/s Surya Agrotech Infrastructure Ltd. (the recipient company).
The AO passed an assessment order making a protective addition of ₹15,23,00,000 in the hands of Surya Vanijya P. Ltd., given that a substantial addition had already been made in the hands of the ultimate beneficiary, M/s Surya Agrotech Infrastructure Ltd. Additionally, an addition of ₹38,07,500 was made in the assessee’s hands on account of unexplained expenditure on commission.
