ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, PATIALA, PATIALA vs. GAGAN KAKKAR, RAJPURA

ITA 549/CHANDI/2026Status: DisposedITAT Chandigarh09 September 2026AY 2019-204 pages
AI SummaryDismissed

What did the Tribunal hold?

The CIT(A) deleted the addition, finding no direct evidence of suppressed sales and noting that the AO's inference was based on a single day's sale compared to an oral estimate. The Tribunal upheld this deletion.

What were the facts?

During a survey, the assessee stated daily sales ranged between Rs. 25,000-30,000. However, recorded sales for a particular day were Rs. 61,254. The AO extrapolated this to estimate suppressed sales for the entire year.

What were the issues?

Whether an addition for suppressed sales can be made based on extrapolating a single day's higher sale compared to an oral estimate, without direct evidence of unrecorded sales.

Which sections of the Income-tax Act were involved?

Section 133A,Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

RAJESH DAMODARLAL SHARMA (Judicial Member)

1.

Aforesaid appeal by revenue for Assessment Year (AY) 2019-20 arises out of an order of Ld. Commissioner of Income Tax (Appeals)-5, Ludhiana [CIT(A)] dated 06.01.2026 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) r.w.s. 147 of the Act on 31.03.2022. In the assessment order, Ld. AO made addition of Rs.2,23,26,759/- on account of alleged suppression of sales. The same has been deleted by Ld. CIT(A) against which the revenue is in fur

The order continues below.

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