GREEN KUMAR KEHRI,MUZAFFARPUR vs. AC/DCIT CENTRAL CIRCLE, MUZAFFARPUR

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ITA 115/PAT/2026Status: DisposedITAT Patna30 April 2026AY 2023-20246 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found that the assessee failed to correlate the disputed figures with their declared turnover. Therefore, the CIT(A)'s decision to include 8% net profit on the unaccounted turnover for both assessment years was upheld.

What were the facts?

During a search, figures in day books and mobile photos were interpreted as undisclosed turnover. The assessee claimed these figures were already included in their declared turnover, but could not reconcile this with the Assessing Officer's findings. The CIT(A) treated these as undisclosed sales and applied an 8% net profit.

What were the issues?

Whether figures found during a search, interpreted as undisclosed turnover, were already included in the assessee's declared income and whether applying an 8% net profit on such turnover is justified.

Which sections of the Income-tax Act were involved?

Section 148,Section 143(2),Section 147,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

For Respondent: Md. A H Chowdhury, CIT (DR)
Hearing: 22.04.2026Pronounced: 30.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH, PATNA (VIRTUAL HEARING AT KOLKATA) SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER SHRI SONJOY SARMA, JUDICIAL MEMBER

ITA Nos. 104&115/PAT/2026 Assessment Years : 2021-22 & 2023-2024

Green Kumar Keshri, Vs. AC/DCIT, Central Circle, New Pan Mandi, Kalyani, Aayakar Bhawan, Near Muzaffarpur, Bihar - 842001 Neharu Stadium, [PAN: ALGPK9551R] Sikandarpur, Muzaffarpur - 842001 APPELLANT RESPONDENT

Assessee by : Sh. Sumit Tekriwal, CA Revenue by : Md. A H Chowdhury, CIT (DR)

Date of hearing : 22.04.2026 Date of Pronouncement : 30.04.2026

O R D E R PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

These two appeals filed by the assessee against the separate orders passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals), Patna-3 [hereinafter referred to as “the Ld. CIT(A)] dated 17.02.2026, DIN & order No. ITBA/APL/S/250/2025-

2 ITA Nos. 104 & 115/PAT/2026 Green Kumar Keshri 26/10861086106753(1) and ITBA/APL/S/250/2025- 26/1086112389(1) respectively.

2.

Assessee has raised following grounds of appeal in ITA No. 104/Pat/2026:

“The learned Assessing Officer has made an addition of Rs. 4,34,344/- by treating certain figures appearing in seized day books and mobile phone photographs as undisclosed turnover of Rs. 54,29,300/- and thereafter applying an average Gross Profit rate of 8%. The said addition is factually incorrect, mathematically flawed, and legally unsustainable, for the reasons explained in Written Submission.” 2.1 Assessee has raised following grounds of appeal in ITA No. 115/Pat/2026:

“The learned Assessing Officer has made an addition of Rs. 3,75,344/- by treating certain figures appearing in seized day books and mobile phone photographs as undisclosed turnover of Rs. 46,91,800/- and thereafter applying an average Gross Profit rate of 8%. The said addition is factually incorrect, mathematically flawed, and legally unsustainable, for the reasons explained in Written Submission.” 3. From the above grounds of appeal, it is clear that the issues involved are identical for both the years except the figures shown in the grounds of appeal. We gone through the assessment order the facts are also similar, therefore, we are passing a common order for ITA No. 104 & 115/Pat/2026.

4.

Briefly stated the facts of the case are that search and seizure action was conducted at the residential premises of Shri Green Kumar Keshri, Sh. Chandra Shekhar Prasad Keshari, at Kedar Nath Road, Kalyani, Muzaffarpur, his proprietary business in the name of M/s

3 ITA Nos. 104 & 115/PAT/2026 Green Kumar Keshri Green Keshri. The assessee filed return of income u/s 139 of the Act declaring total income of Rs. 11,98,030/- for AY 2021-22 and Rs. 17,12,210/- for the AY 2023-24. The case was selected for compulsory scrutiny for the AY 2021-22 and notice u/s 148 of the Act was issued to the assessee. In response to the notices, the assessee filed ITR on 01.05.2024 declaring the same income. Accordingly, notice u/s 143(2) of the Act was issued to the assessee on 18.06.2024. For the AY 2023- 24, case was selected under compulsory scrutiny and notice u/s 143(2) of the Act was issued on 15.03.2024. During the course of assessment proceedings, various additions were made, the issue before us is regarding the documents found during the course of search in which the figures were mentioned in coded form like “2kg, “3kg, “4kg” and 5.21 kg etc. and it was confronted to the assessee. During the course of search and seizure proceeding and statements recorded the assessee stated that use of acronym “KG”/”kg” as a substitute for word “Lakh” in WhatsApp communication telephonic conversation while communicating the amount of cash, the assessee used this word for 5kg or 5 lakhs etc. In this regard, the relevant part of the statement is extracted by AO in his order and which was treated as undisclosed sales in this regard. The assessee furnished details out of detailed furnished it was not clear whether the amount of Rs. 54,29,300/- for AY 2021-22 and Rs. 46,91,800/- for AY 2023-24 are included in the

4 ITA Nos. 104 & 115/PAT/2026 Green Kumar Keshri details furnished. Accordingly, the entire decoded figures were treated as undisclosed income and the AO completed the assessment u/s 147 of the Act for AY 2021-22 and section 143(3) for AY 2023-24 on 10.03.2025 and 09.03.2025.

5.

Aggrieved from the above order, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) treated undisclosed income as undisclosed sales and applied 8% net profit observing that this issue is covered by the various judicial precedents. Accordingly, he partly allowed the appeal of the assessee. The assessee is in appeal for 8% income sustained by the Ld. CIT(A) on the undisclosed sales.

6.

Aggrieved from the above order, the assessee is in appeal before the ITAT.

7.

The Ld. Counsel for the assessee reiterated the submissions made before the lower authorities and submitted that this turnover are included in the entire turnover as declared by the assessee. During the assessment proceedings it was asked to reconcile from the paper book filed by the assessee but the assessee could not corelate with the entire turnover observed by the AO are not part and parcel of the details furnished during the course of assessment proceedings. , even before us he could not corelate with the turnover are part of the entire turnover as furnished by the assessee.

5 ITA Nos. 104 & 115/PAT/2026 Green Kumar Keshri 8. The Ld. DR relied on the orders of lower authority.

9.

Considering the rival submission and perusing the entire material available on record and the orders of authorities below. We noted that during the assessment proceedings the AO treated the difference as unaccounted income and ld. During the course of hearing before us the ld. Counsel for the assesse could not co-relate that the difference noted by the AO are included in the turnover by the assesse. The ld. CIT(A) considered it as turnover and applied 8% net profit. The Revenue is also not in appeal for giving relief to the assesse. Considering the facts of the case and in the interest of justice, we hold that the Ld. CIT(A) has rightly included 8% net profit on unaccounted turnover for both the years.

10.

In the result, appeals for both the years are dismissed

Order pronounced on 30.04.2026.

Sd/- Sd/- (Sonjoy Sarma) (Laxmi Prasad Sahu) Judicial Member Accountant Member Dated: 30.04.2026 AK, Sr. P.S.

6 ITA Nos. 104 & 115/PAT/2026 Green Kumar Keshri Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR)

//True copy// By order

Assistant Registrar, Kolkata Benches

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