KOLLURI INDU SEKHAR,BENGALURU vs. DCIT CIRCLE 3(1)(1) , BENGALURU

ITA 256/BANG/2026Status: DisposedITAT Bangalore31 August 2026AY 2017-187 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issues of unsecured loans and estimated profit to the Assessing Officer for fresh adjudication. The assessee needs to establish the identity, creditworthiness of the creditor, and genuineness of the ₹1 crore credit, and provide quantitative details for the profit estimation.

What were the facts?

The assessee, a palm oil trader, had unsecured loans and cash deposits during demonetisation. The Assessing Officer added unsecured loans and estimated profit due to lack of quantitative details. The CIT(A) partly allowed the appeal, confirming an addition of ₹1 crore related to an advance and an addition for estimated profit.

What were the issues?

Whether the addition of unsecured loans and estimated profit was justified without proper verification and evidence. Whether the assessee discharged the onus under Section 68 for the unsecured loan.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI SOUNDRARAJAN K.

PER SHRI PRASHANT MAHARISHI, VICE PRESIDENT

1.

The assessee/appellant, Shri Kolluri Indu Sekhar, has filed ITA No. 256/Bangalore/2026 for assessment year 2017–18 against the appellate order dated 28 October 2025 passed by the National Faceless Appeal Centre, Delhi (the learned CIT(A)). By that order, the CIT(A) partly allowed the assessee’s appeal against the assessment order dated 25

ITA 256/BANG/2026 KOLLUR

The order continues below.

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