CHARU AGARWAL,AGRA vs. INCOME TAX OFFICER, CIRCLE 2(1)(1), AGRA, AGRA

ITA 274/AGR/2026Status: DisposedITAT Agra31 August 2026AY 2017-184 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO made an ad hoc disallowance without identifying specific handmade/unsigned bills or providing tangible evidence of non-business expenditure. Therefore, the disallowance was deleted.

What were the facts?

The assessee, running a cold storage, claimed various business expenses. The Assessing Officer (AO) disallowed 20% of these expenses, amounting to Rs. 4,95,200, citing handmade/unsigned bills and lack of justification. The CIT(A) dismissed the assessee's appeal.

What were the issues?

Whether an ad hoc disallowance of business expenses is justified solely on the basis of handmade/unsigned bills without specific identification and tangible evidence of non-business use.

Which sections of the Income-tax Act were involved?

Section 143(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA(DB

Before: SUNIL KUMAR SINGHBRAJESH KUMAR SINGH

Hearing: 08.07.2026Pronounced: 31.08.2026

PER:BRAJESH KUMAR SINGH, A.M.

This appeal is directed against impugned order both dated 23.02.2026 passed in appeal No CIT(A) 2, Agra/10678/2019-20 by the ld. Addl/JCIT(A)

ITA 274/Agr/2026

Faridabad (hereinafter referred to as the “CIT(A) u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for the A.Y. 2017-18 wherein ld. CIT(A) has dismissed assessee’s appeal.

1.

1 None appeared on behalf of the assessee and this appeal was heard after hearing the Sr. DR and the material available on record before us.

2.

Brief facts of the case: The assessee is running a cold storage in the name and style of Ramwati Sheetgrah. During the year the assessee had filed he

The order continues below.

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