Assistant Commissioner Of Income Tax, Central Circle-25, Delhi vs Concept Weavers Private Limited

PER SHRI ANUBHAV SHARMA, JUDICIAL MEMBER:

This appeal is preferred by the revenue against the order dated 10.09.2025 of Ld. Commissioner of Income Tax (Appeals)-29, New Delhi (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in Appeal No: CIT(A), Delhi-29, 10769/2018-19 arising out of the assessment order dated 21.03.2023 u/s 153C of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by ACIT, Central Circle-25, New Delhi, for AY: 2019-20.

Heard and perused the records. The return of assesse was taken up for scrutiny assessment on the basis of high risk CRIU/VRU information received on the basis of search u/s 132 of the Act conducted on 17.11.2021 on Galaxi Group, Shri Pradeep Indra Prasad Agrawala and alleged entry provider Shri Deepak Agarwal and Himashu Verma on the basis of documents seized during search and it was allegedly found that the assesse had obtained accommodation entry of Rs.10,55,581/- and thus, based upon the information and the response of the assesse, the ld. AO had made addition of Rs.10,00,000/- u/s 68 of the Act, alleging that assesse had received an amount of Rs.10,00,000/- from non-descript companies and further addition of Rs.30,000/- was made towards commission paid u/s 69C of the Act and the interest payment was added to the income u/s 69C. Ld. CIT(A) has deleted the additions for which department is in appeal.

Ld. DR though supported the findings of AO, however, we find that ld. CIT(A) has taken into consideration the vital facts including that loan of Rs.10,00,000/- was from M/s LVS Financials Service Pvt. Ltd., a NBFC duly registered with RBI and all basic documents with regard to establishing identity, creditworthiness and genuineness of the transaction were filed and in fact even before the reopening the amount were repaid. The conclusion drawn by ld. CIT(A) in para 6.18, thus, deserves to be sustained with regard to deletion of addition of loan of Rs.10,00,000/- and the consequential commission interest additions has been rightly deleted. We find no reason to interfere in the finding of ld. CIT(A). The ground raised by the department have no substance, the appeal of the department is dismissed.