Vivek Jain vs Income Tax Officer

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeal), NFAC Delhi [in short ‘ the CIT(A)’] dated 28.10.2025, for assessment year 2017-18.

The appeal is time barred by 107 days. The assessee has filed an application for condonation of delay. After perusal of same, I am satisfied that the delay in filing of appeal is not deliberate. The delay in filing of appeal was for the reasons stated in said application, which appears to be bonafide. Hence, delay of 107 days in filing of appeal is condoned and appeal is admitted for hearing.

The ld. Counsel submits that the solitary issue in the instant appeal is addition of Rs. 6,80,414/- made by the AO on account of payments made by the assessee towards the credit card outstanding. The ld. counsel placed on record statements of the credit card (at pages 1-41 of the paper book). The ld. Counsel further submits that the payments made by the assessee were towards the loans taken against the credit card in the preceding assessment years. The assessee is earning commission income for liaisoning between the seller and the purchaser of medicines. The assesee is receiving commission income in cash, therefore, the cash payments were made to repay the loan account. He further submits that the commission income earned by the assessee has already been offered to tax in the return of income. If the addition is sustained, it would result in double addition of the same income.

Per contra, Shri Manoj Kumar representing the department vehemently supported the impugned order and prayed for dismissing appeal of the asseseee. The ld. DR reiterated the findings of the AO and the CIT(A).

Both sides heard. Orders of the authorities below examined. The short issue in the instant appeal is with regard to the addition of Rs. 6,80,414/- made u/s. 69C of the Act. The AO has made addition disbelieving the assessee’s contention that the amount paid by the assessee towards credit card outstanding was from the commission income earned in cash. After examining the documents on record, I am satisfied that the explanation furnished by the assessee with regard to source of cash payments to pay credit card outstanding amount is plausible. Therefore, the contention of the assessee is accepted.

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