DARSHAN PANDYA,SURAT vs. WARD 1(2)(6), SURAT

ITA 548/SRT/2025Status: DisposedITAT Surat18 August 2026AY 2010-116 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the AO did not reject the books of account and the turnover exceeded Rs. 60 lakhs (making Section 44AD inapplicable for presumptive taxation at 8%), the actual net profit offered by the assessee should be considered. Therefore, no further addition was required.

What were the facts?

The assessee, a peon, allowed his bank account to be used for export transactions by another party, resulting in a turnover of Rs. 2,96,42,208/-. The Assessing Officer (AO) made an addition of Rs. 21,35,473/- by estimating net profit at 8% of turnover, as the assessee provided no details for expenses.

What were the issues?

Whether the AO could estimate income at 8% of turnover without rejecting the assessee's books of account, and whether Section 44AD was applicable given the turnover.

Which sections of the Income-tax Act were involved?

Section 148,Section 145(3),Section 44AD,Section 271(1)(c),Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Shri Ashish Bhoola, CA
For Respondent: Shri Ashish Kumar, Sr.DR
Hearing: 16.06.2026Pronounced: 18.08.2026

PER : SUCHITRA KAMBLE, J M:

The appeal filed by the assessee is against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short “CIT(A)”] dated 29.03.2025 for the Assessment Year (in short “AY”) 2010-11. 2. The assessee has raised the following grounds of appeal:

“1. On the facts and circumstances of the case, the Ld. CIT(A's) had erred in confirming the addition of Rs. 21,35,473/-.

2.

On the facts and circumstances of the case, the Ld. CIT(A's) had erred in taking net profit @8% of total turnover of Rs. 2,96,42,208/-.

3.

On the facts and circumstances of the case, the Ld. CIT(A's) had erred in not accepting the objection raised by the Appellant as

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 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →