SHANKAR GOUD BALAGONI,HYDERABAD vs. ITO., WARD-15(1), HYDERABAD

ITA 922/HYD/2025Status: DisposedITAT Hyderabad16 September 2026AY 2013-1418 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that once the Assessing Officer rejects the books of account and estimates the business profit, further additions based on specific items from the rejected books, like license fee expenditure, are not permissible. It also found that bank accounts, once accounted for in the books, cannot be treated as unexplained credits.

What were the facts?

The assessee, engaged in the wine retail business, had his income selected for scrutiny. The Assessing Officer made several additions, including for unexplained cash deposits and license fee expenditure, after rejecting the assessee's book results and estimating profit. The CIT(A) partly allowed the appeal, deleting some additions and restricting others.

What were the issues?

Whether additions made on account of unexplained cash deposits and license fee expenditure are sustainable after the Assessing Officer rejected the assessee's books and estimated business income.

Which sections of the Income-tax Act were involved?

Section 68,Section 69B,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘A‘ Bench, Hyderabad

Before: Shri Ravish SoodShri Madhusudan Sawdia

Hearing: 20/08/2026

Per Madhusudan Sawdia, A.M.:

This appeal is filed by Shri Shankar Goud Balagoni (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) (“Ld. CIT(A)”) dated 28.04.2025 for the A.Y. 2013-14. 2. The assessee has raised the following grounds of appeal:

3.

The assessee has also raised the following additional grounds before us:

“7. The Ld. CIT(A) erred in law and on facts in sustaining the additions made by the Assessing Officer, without appreciating that once the income of th

The order continues below.

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