SUNILKUMAR KRISHNAKANT RATHOD,KOTA vs. DCIT CIRCLE-2, KOTA, KOTA

ITA 447/JPR/2026Status: DisposedITAT Jaipur16 September 2026AY 2023-246 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the disallowance was ad hoc and unsupported by material evidence or specific defects in the books of account. The AO's reasons, such as the absence of an attendance register and cash payments below Rs 10,000, did not justify the disallowance.

What were the facts?

The assessee, a petrol distributor, declared a net profit of 0.86% on turnover. The AO disallowed 20% of employee expenses (Rs 4,80,000) citing lack of attendance register and cash payments below Rs 10,000. The CIT(A) confirmed the disallowance.

What were the issues?

Whether a disallowance of employee expenses can be sustained solely on the absence of an attendance register and cash payments below Rs 10,000, when the audited books of account have not been rejected.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 40A(3),Section 145(3),Section 250(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘SMC’ BENCH, JAIPUR

Before: Shri T.R. Senthil Kumar & Shri Prakash

PER : PRAKASH, ACCOUNTANT MEMBER:-

1.

This appeal by the Assessee is directed against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Cen- tre, Delhi [hereinafter referred to as “the learned CIT(A)”] dated 28.01.2026 arising out of the assessment order dated 18.03.2025 passed by the Assessing Officer (hereinafter referred to as “the AO”) under sec- tion 143(3) read with section 144B of the Income Tax Act, 1961 (hereinaf- ter referred to as “the Act”) for the assessment year 2023-24. 2. The Assessee has raised four grounds of appeal in the memorandum of appeal in Form No.

36.

Ground No. 2 is the only substantive ground an

The order continues below.

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