KEMPAIAH KEMPARAJU,BANGALORE vs. DCIT, CIRCLE-6(1)(1), BANGALORE

ITA 160/BANG/2026Status: DisposedITAT Bangalore19 May 2026AY 2017-1819 pages
AI SummaryPartly Allowed

What were the facts?

The assessee, a contractor, did not file an income tax return despite significant contractual receipts and interest income. The Assessing Officer (AO) made an ex-parte assessment, estimating net profit at 15% and rejecting deductions. The assessee later filed a return declaring a lower profit margin and claimed deductions.

What did the Tribunal hold?

The Tribunal held that the AO's estimation of profit at 15% was arbitrary and unjustified. It directed the AO to recompute the net profit at 7% of the turnover. The Tribunal also remanded the issue of Chapter VI-A deductions and credit for TDS and self-assessment tax to the AO for verification.

What were the issues?

Whether the AO's estimation of net profit at 15% was justified and whether the assessee was eligible for deductions under Chapter VI-A.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 44AD,Section 30,Section 43D,Section 80C,Section 80TTA,Section 148,Section 151,Section 142(1),Section 194A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A’’BENCH: BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI KESHAV DUBEY

For Appellant: Shri Narayan Murthy &
Hearing: 24.03.2026Pronounced: 19.05.2026

PER KESHAV DUBEY, JUDICIAL MEMBER:

These appeals at the instance of the assessee are directed against the separate orders of the ld. CIT(A)/NFAC both dated 4.12.2025 vide DIN & Order No. ITBA/NFAC/S/250/2025- 26/1083325287(1) for the AY 2017-18 and vide DIN & Order No. ITBA/NFAC/S/250/2025-26/1083321492 (1) for the AY 2013-14 passed u/s. 250 of the Income Tax Act, 1961 (in short “the Act”). Since the issue in both these appeals is common in nature, these are clubbed together, heard together and disposed of by this common order for the sake of convenie

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 147

All 48,773 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →