ANIL DAGA,MORBI vs. ITO, WARD-1, MORBI, MORBI

ITA 883/RJT/2026Status: DisposedITAT Rajkot23 September 2026AY 2014-157 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal held that the entire transportation expenses could not be disallowed merely for online non-verification of Form No. 402 when books were not rejected and sales were accepted. It sustained a 2% disallowance (Rs. 2,37,310/-) for transportation expenses. The disallowance of commission expenses was entirely deleted as payments were through banking channels, TDS was deducted, and agents accounted for them, with no specific evidence of bogusness.

What were the facts?

The assessee, engaged in wholesale trading, challenged disallowances made by the Assessing Officer (AO) and upheld by the CIT(A). The AO disallowed Rs. 1,18,65,492/- in transportation expenses due to non-verification of Form No. 402 entries online and Rs. 3,10,282/- in commission expenses, inferring they were linked to unverified sales.

What were the issues?

Whether transportation expenses can be entirely disallowed solely based on non-verification of Form No. 402 entries online when books of account are not rejected and sales are accepted. Whether commission expenses can be disallowed without specific evidence of bogusness, merely by inference from unverified transportation forms.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Mehul Ranpura, Ld. AR
For Respondent: Shri Pravin Sinha, Ld. Sr. DR
Hearing: 14/09/2026Pronounced: 23/09/2026

Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2014-15, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 22.05.2026, which in turn arises out of an order passed by assessing officer u/s. 143(3) of the Act, dated 26.12.2016. 02. Brief facts of the case are that the assessee is an individual engaged in the busi

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

Recent GST High Court judgments

Search GST case law →