VALAR AND CO,NAMAKKAL vs. ITO WARD 1(6), CHENNAI, CHENNAI

ITA 3428/CHNY/2025Status: DisposedITAT Chennai22 May 2026AY 2018-199 pages
AI SummaryPartly Allowed

What were the facts?

The assessee, a firm, filed its return of income and later revised it. The Assessing Officer (AO) made additions for bogus purchases and disallowance of freight expenses. The assessee's revision petition and appeal to the CIT(A) were unsuccessful.

What did the Tribunal hold?

The Tribunal held that without rejecting the books of account, the AO cannot make arbitrary disallowances. It also found that the assessee had furnished declarations for freight expenses as per Section 194C(6).

What were the issues?

Whether the disallowance of purchases was arbitrary without rejecting books of account, and whether the disallowance of freight expenses was justified given the declarations provided.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 264,Section 40(a)(ia),Section 194C(6),Section 145(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI MANU KUMAR GIRI & SHRI S. R. RAGHUNATHA

Hearing: 18.03.2026Pronounced: 22.05.2026

PER S.R.RAGHUNATHA, AM:

This appeal of the assessee is filed against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, (in short “ld.CIT(A)”) for the assessment year (A.Y.) 2018-19, vide order dated 24.09.2025 in respect of the order u/s.143(3) r.w.s. 264 / 144B of the Act passed by the Assessment Unit, Income Tax Department dated 29.05.2023. :-2-:

2.

The

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 144B

All 10,344 judgments and leading authorities on Section 144B →

Recent GST High Court judgments

Search GST case law →