ACIT Vs Sunil Kumar Joshan (ITAT Agra)
In ITA No.494/AGR/2025 (AY 2014-15), the ITAT Agra Bench upheld the order of CIT(A) deleting addition u/s 68 r.w.s.115BBE relating to alleged unexplained receipts from overseas art exhibition sales. The assessee, proprietor of M/s Sanchit Art, conducted consignment sales of paintings through PHI Events, Singapore and received net remittance of about ₹3.05 Cr after expenses. AO treated gross receipts as bogus accommodation entries alleging colourable device, but CIT(A) accepted identity, genuineness & creditworthiness based on extensive documentary evidence including export documents, invoices, bank remittance proofs, GST payment details, and confirmations from Singapore entity.
ITAT noted that paintings were exported through customs, exhibition events were verifiable publicly, sales invoices & customer lists were furnished, and inward remittances were supported by Foreign Bill Transaction Advice and IDBI bank statements. Payments to artists were also evidenced, demonstrating genuine business activity. Tribunal rejected Revenue’s Rule 46A objection holding no additional evidence was filed before NFAC and observed AO failed to controvert documentary proof.
Accordingly, addition u/s 68 was held unjustified, Revenue appeal dismissed, and assessee’s cross-objection treated as infructuous.
FULL TEXT OF THE ORDER OF ITAT AGRA
The appeal in ITA Nos. 494/AGR/2025 filed by the revenue and CO 07/AGR/2025 filed by the assessee for AY 2014-15, arises out of the order of the ld National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as „ld. CIT(A)‟, in short] dated 19.08.2025 for AY 2014-15 against the order passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as „the Act‘) by of the ld Assessing Officer, ACIT, Circle-2(1)(1), Agra (hereinafter referred to as „ld. AO‘) dated 29.12.2016.
