INCOME TAX OFFICER, AURANGABAD vs. PRAMOD SINGH, AURANGABAD

ITA 68/PAT/2026Status: DisposedITAT Patna11 August 2026AY 2018-196 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the disallowance was based on information apparent from the return and tax audit report, thus falling under section 143(1)(a)(ii). However, it also noted that the entire expenditure was disallowed, which was incorrect. Therefore, the matter was remitted to the AO for fresh examination.

What were the facts?

The Income Tax Officer processed the assessee's return under section 143(1) and disallowed contract expenses of Rs. 3,55,48,484/- based on information in the tax audit report. The CIT(A) deleted this disallowance, holding it to be a debatable issue not suitable for 143(1) processing.

What were the issues?

Whether disallowance of contract expenses based on tax audit report information is permissible under section 143(1)(a), and if the entire expenditure could be disallowed without detailed examination.

Which sections of the Income-tax Act were involved?

Section 143(1)(a),Section 40A(3),Section 44AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

For Appellant: Shri Nishant Maitin, CA
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 revenue 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 07.08.2024, DIN & Notice No. ITBA/APL/S/250/2025- 26/1083945608(1) on the following grounds of appeal:

2 “i. Whether on the facts and in the circumstances of the case and in law, the CIT(A) has erred in deleting the disallowance of corresponding Contract expenses of Rs. 3,55,48,484/- made u/s 143(1)(a)(iv) of the In

The order continues below.

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