DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE SAMBALPUR vs. OMPRAKASH GUPTA, SUNDARGARH

ITA 654/CTK/2025Status: DisposedITAT Cuttack04 June 2026AY 2018-196 pages
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What did the Tribunal hold?

The Tribunal modified the CIT(A)'s order, directing that the addition for suppressed sales be restricted to 1.51% of the revised undisclosed turnover. However, the addition for violation of Section 40A(3) was confirmed as the assessee failed to provide exceptional reasons for cash payments.

What were the facts?

Following a search operation, the Assessing Officer made additions for suppressed sales and violation of Section 40A(3). The CIT(A) reduced the addition for suppressed sales after considering a remand report, but the revenue appealed this reduction.

What were the issues?

Whether the CIT(A) correctly reduced the addition for suppressed sales and if the assessee's cash payments violated Section 40A(3).

Which sections of the Income-tax Act were involved?

Section 40A(3),Section 153A

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Heard together (2 matters)

C.O No.08/CTK/2026
ITA No.654/CTK/2025

Read from the judgment's own cause title. This page is filed under one of them.

आयकरअपीलीयअधिकरण,कटकन्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH HYBRID HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA Nos.635 & 654/CTK/2025 (धििाारणवर्ा / Assessment Years: 2018-19) Sundargarh, Odisha- 770001. PAN No. : AEIPG1858G (अपीलार्थी/Appellant) (प्रत्यर्थी / Respondent) .. आयकर अपील सं/IT(SS)A No.34/CTK/2026 (धििाारणवर्ा / Assessment Years: 2018-19) Sundargarh, Odisha- 770001. PAN No. : AEIPG1858G (अपीलार्थी/Appellant) .. (प्रत्यर्थी / Respondent) C.O No.08/CTK/2026 (in ITA No.654/CTK/2025) (धििाारणवर्ा / Assessment Years: 2018-19) Sundargarh, Odisha- 770001. PAN No. : AEIPG1858G (अपीलार्थी/Appellant) (प्रत्यर्थी / Respondent) ..

धििााररतीकीओरसे /Assessee by : Shri Mahendra Kr. Kedia, AR राजस्वकीओरसे /Revenue by : Shri Jeetendra Kumar, CIT-DR सुनवाईकीतारीख/ Date of Hearing : 04/06/2026 घोषणाकीतारीख/Date of Pronouncement : 04/06/2026

2 ITA Nos. 635 &

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