NAZIR AHMAD WANI,DANAMAZAR SAFA KADAL vs. ITO WARD-1 SRINAGAR, RAJBAGH SRINAGAR

ITA 709/ASR/2025Status: DisposedITAT Amritsar17 September 2026AY 2016-173 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found the 8% profit rate to be on the higher side, considering the assessee's business nature and profit rates in subsequent years not exceeding 3.22%. Therefore, the AO was directed to adopt a profit rate of 4%.

What were the facts?

The assessee, engaged in the kiryana business, had significant bank credits. The Assessing Officer estimated income at 8% of these credits, which was upheld by the CIT(A). The assessee appealed, arguing for a lower profit rate based on subsequent years' performance.

What were the issues?

The primary issue was the reasonableness of the profit rate estimated by the AO on the assessee's bank credits. The assessee contended that a lower profit rate, consistent with subsequent years, should be applied.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, AMRITSAR

Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 22.07.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 147 r.w.s. 144 r.w.s. 144B of the Act on 09.02.2024. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under.

2.

The assessee remained non-compliant during assessment proceedings. It transpired that the a

The order continues below.

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