Anil Kumar Tiwari vs Income Tax Officer Ward 60(4)

PER VIKAS AWASTHY, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of Additional/Joint Commissioner of Income Tax (Appeals), Aurangabad [in short 'the CIT(A)'] dated 04.03.2026, for Assessment Years 2012-13.

Shri Saksham Garg, appearing on behalf of the assessee submits that the assessee is a authorized IRCTC ticket booking agent, earning commission on booking of railway tickets through the IRCTC portal. The assessee makes reservation of railway tickets for customers by making payment through his HDFC Bank Credit Card. The customers reimburse the ticket amount in cash. The assessee merely earns commission on such bookings. The payment of Rs.8,28,136/- towards credit card bills is the amount paid for purchase of tickets of the customer through credit card. The Id. AR placed on record complete credit card statement for Financial Year 2011-12 to show that the payments are for purchase tickets from IRCTC portal. The Id. AR further submits that the amount of Rs.29,486/- reflected in Form 26AS is the TDS deducted on commission. The ld. AR submits that the lower authorities have failed to appreciate the business model of the assessee and made addition of Rs.8,28,136/- u/s.69C of the Income Tax Act, 1961 (herein

Per contra, Shri Nirmal Nangia, representing the department placed reliance on the order of Assessing Officer (AO) and the CIT(A).

Both sides heard, orders of the lower authorities examined. The limited issue for consideration in present appeal is addition of Rs.8,28,136/- u/s.69C of the Act and addition of Rs.29,486/- i.e. the amount reflected in Form No. 26AS. The assessee is an IRCTC ticket booking agent. The assessee has explained its business model-the assessee reserves the tickets for its customers from IRCTC portal using his credit card, the assessee receives the ticket amount in cash from the customers. The cash received from the customer is utilised by the assessee for making payment of the outstanding credit card dues. The assessee has placed on record credit card statement for AY 2011-12. A perusal of the monthly statement reveals that the payments made through credit card are substantially for purchase of railway tickets from IRCTC. The assessee receives commissions charges on each booking. I find merit in the submissions of the assessee, the payments made by the assessee towards credit card bills are purely for business purpose of assessee, hence, no addition in respect thereof is warranted. The assessee has been able to discharge its onus in proving that the payments are for the business purpose only. Both additions made by the AO are directed to be deleted.

In the result, impugned order is set aside and appeal of the assessee is allowed.

Order pronounced in the open court on Tuesday the 29^th day of September, 2026.