DWARIKA SINGH,GAYA vs. ACIT, CIRCLE-1, GAYA, GAYA

ITA 353/PAT/2026Status: DisposedITAT Patna27 July 2026AY 2017-1817 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the rejection of books of account and the estimation of net profit at 8% of gross receipts. It ruled that separate deductions for depreciation are not allowable when a reasonable net profit rate is applied, especially since the assessee failed to provide necessary particulars.

What were the facts?

The assessee, a civil contractor, failed to furnish supporting documents for his expenses, leading the Assessing Officer to reject his books of account. The AO estimated the net profit at 8% of the gross receipts for both assessment years.

What were the issues?

Whether the estimation of net profit at 8% by the AO is justified and whether separate deduction for depreciation is allowable when net profit is estimated.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 44AD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA “DB” BENCH

Before: SHRI LAXMI PRASAD SAHU & SHRI YOGESH KUAMR U.S.

For Appellant: Shri Vishal Kumar, AR
For Respondent: Shri Ravi Kant Chowdhary, Sr. DR
Hearing: 21.07.2026Pronounced: 27.07.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER:

These two appeals are filed by the assessee against the orders of the NFAC, Delhi [“the Ld. CIT(A)”, for short], both dated 25.03.2026 passed u/s 250 of the Income Tax Act, 1961 (“the Act”, for short) for the assessment years 2017-18 & 2018-19 on the following grounds of appeal.

IN ITA No.353/PAT/2026; A.Y. 2017-18

1.

For that the grounds of appeal hereto are without prejudice to each other.

2.

For the in the facts and circumstances of the case, the Assessment Order as passed is arbitrary, unjustified, void ab-initio and bad in law.

3.

For that the learned ACIT, Circle-1, Gaya has erred in issuing notice u/s 143(2) of the Act dated 26.09

The order continues below.

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