SURESH PRASAD SINGH,ROHTAS vs. ITO WARD3 (4), SASARAM

ITA 139/PAT/2026Status: DisposedITAT Patna11 August 2026AY 2017-188 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that since the AO accepted the assessee was in the coal trading business, Section 44AD should be considered. They directed the AO to compute estimated profit at 10% on cash deposits and 8% on other deposits as business income.

What were the facts?

The assessee deposited and withdrew substantial amounts in bank accounts during the financial year 2016-17, but did not file an income tax return. The Assessing Officer treated the entire deposits and withdrawals as unexplained money under Section 69A. The CIT(A) confirmed the addition on deposits.

What were the issues?

Whether the entire bank deposits can be treated as unexplained money when the assessee is engaged in business, and if Section 44AD is applicable for estimating business income.

Which sections of the Income-tax Act were involved?

Section 69A,Section 44AD,Section 144,Section 147,Section 271AAC(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

For Appellant: Shri A. K. Rastogi, Sr. Advocate and Rakesh Kumar, Advocate
For Respondent: Shri Ravi Kant Chowdhary, Sr. DR
Hearing: 22.07.2026Pronounced: 11.08.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

This is an appeal filed by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)] dated 23.12.2025, DIN & order No. ITBA/NFAC/S/250/2025- 26/1084020948(1) on the following grounds of appeal:

2 “1. For that the Ld. CIT(A) erred in law and on facts in confirming the addition of ₹1,65,50,781/ under Section 69A, despite the admitted fact in the Remand Report by Ld. AO that the Appellant

The order continues below.

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