SEHGAL AND SEHGAL,JALANDHAR vs. ITO, WARD 3(4), JALANDHAR, JALANDHAR

ITA 606/ASR/2024Status: DisposedITAT Amritsar04 June 2026AY 2016-20178 pages

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the source of investment in the car was explained as it was sourced from the bank account and reflected in the audited financials. Regarding indirect expenses, the Tribunal found the amount borne by the assessee to be reasonable and not a case for rejection of books of accounts.

What were the facts?

The assessee purchased a second-hand car for Rs. 6.30 lakhs, with payments made through cash withdrawal and bank cheque, all reflected in the bank statement and audited financials. The assessee also incurred indirect expenses which were reimbursed by a company, with only Rs. 1.31 lakhs remaining after reimbursements.

What were the issues?

Whether the source of investment in the car was adequately explained and whether the disallowance of indirect expenses was justified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: DR. DIPAK P. RIPOTE & SH. UDAYAN DAS GUPTA

For Appellant: CA (virtual)

Hearing: 18.03.2026Pronounced: 04.06.2026

Per: Udayan Dasgupta, JM:

This appeal is filed by the assessee against the order of ld. Addl/ JCIT(A)-12, Mumbai, passed u/s 250 of the IT Act, 1961, dated 06.08.2024, which has emanated from the order of the AO, Ward-3(2), Jalandhar, passed u/s 143(3) of the Act, dated 15.12.2018. 2. Condonation of Delay: This appeal is belatedly filed by 35 days (thirty five days). The assessee has filed an application for condonation of delay supported by an affidavit explaining the delay that the appeal required to be filed on or before 06/10/2024, was filed on 09/11/2024, with a delay of 35 days, because the partner Assessment Year: 2016-17 2

of the firm perm

The order continues below.

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