KAMLA DEVI, KANGRA,KANGRA vs. JAO THE INCOME TAX OFFICER, DHARAMSHALA, DHARAMSHALA

ITA 433/CHANDI/2026Status: DisposedITAT Chandigarh09 September 2026AY 2019-20207 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the 8% profit estimation was excessive and reduced it to 5% of turnover. It also deleted the addition under Section 69A, considering the cash deposits as part of business receipts when business income was already estimated.

What were the facts?

The Assessing Officer rejected the assessee's books of account due to unsubstantiated expenses and lack of quantitative details for closing stock. Consequently, business profit was estimated at 8% of turnover, and cash deposits were added under Section 69A.

What were the issues?

Whether the estimation of business profit at 8% was justified and if cash deposits could be added separately under Section 69A when business income was estimated.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 69A,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENCH, ‘SMC’ CHANDIGARH

Before: SHRI LALIET KUMAR

For Appellant: Shri Sudhir Sehgal, Advocate
For Respondent: Shri Vivek Vardhan, Addl. CIT, Sr.DR
Hearing: 08.09.2026Pronounced: 09.09.2026

The present appeal is directed against the order dated 18.12.2025 passed by the ld. CIT(A), NFAC, Delhi, for the assessment year 2019-20, arising out of the assessment order dated 08.03.2024 passed by the Assessing Officer under section 144 read with section 144B of the Income-tax Act, 1961. 2. The facts of the case are that the assessee was engaged in business and had disclosed total sales of Rs.2,62,71,740/- and net profit of Rs.7,91,974/-, giving a net profit rate of about 3%. The Assessing Officer observed that various expenses claimed by the A.Y.2019-20 2 assessee were not properly substantiated and that quantitative detai

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.

More judgments on Section 145(3)

All 3,640 judgments and leading authorities on Section 145(3) →

Recent GST High Court judgments

Search GST case law →