GREEN KUMAR KESHRI,MUZAFFARPUR vs. AC/DCIT , CENTRAL CIRCLE,MUZAFFARPUR

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ITA 53/PAT/2026Status: DisposedITAT Patna22 April 2026AY 2022-20236 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the AO computed income on GP basis ignoring incriminating documents found during search. Considering the interest of justice, the issue is remitted back to the AO for in-depth examination with a direction to the assessee to substantiate with credible evidence.

What were the facts?

A search and seizure operation revealed discrepancies in the assessee's declared turnover for Pan Masala business. The Assessing Officer (AO) made additions to income based on seized documents and average Gross Profit (GP) rates. The assessee's appeal to the CIT(A) was dismissed due to non-response.

What were the issues?

Whether the AO correctly computed the income based on seized documents and average GP rates, and if the assessee's non-response to CIT(A) notices warrants dismissal of the appeal.

Which sections of the Income-tax Act were involved?

Section 139,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

Hearing: 02.04.2026Pronounced: 22.04.2026

IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH, PATNA (VIRTUAL HEARING AT KOLKATA) SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER SHRI SONJOY SARMA, JUDICIAL MEMBER

ITA No. 53/PAT/2026 Assessment Year : 2022-2023

Green Kumar Keshri, Vs. AC/DCIT, New Pan, Mandi Kalyani, Aayakar Bhawan, Near Muzaffarpur - 842001 Nehru Stadium, [PAN: ALGPK9551R] Sikandarpur, Muzaffarpur - 842001 APPELLANT RESPONDENT

Assessee by : Sh. Sumit Tekriwal, CA Revenue by : Sh. Manab Adak, JCIT

Date of hearing : 02.04.2026 Date of Pronouncement : 22.04.2026

O R D E R PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER

This is an appeal filed by the assessee against the orders passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals)-Patna-3 [hereinafter referred to as “the Ld. CIT(A)], dated 04.11.2025, DIN & Order No. ITBA/APL/S/250/2025-26/1082289359(1).

2 ITA No. 53/PAT/2026 Green Kumar Keshri 2. Briefly stated the facts of the case are that the search and seizure action was conducted in the residential premises of shri Green Kumar Keshari, S/o Sh. Chandra Shekhar Prasad Keshari, at Kedar Nath Road, Muzaffarpur and survey was also conducted and notice was also issued to the assessee. The assessee has filed original return of income u/s 139 of the Act on 30.12.2022 declaring income of Rs. 14,63,130/-. Thereafter, case was selected for scrutiny and statutory notices were issued toe the assessee. During the course of search proceedings on 03.08.2022, it was found that there is investment in building and as per valuation by the approved valuer it was declared at Rs. 40,78,200/- but source of investment in building were not explained, accordingly a show cause notice was issued. The assessee is engaged in the business of purchase of sales of Pan Masala and during the course of search various incriminating documents were found marked as GKK-01 to GKK-83 and the documents were impounded during the course of search from the business premises/godowns. From all these documents, figures indicating sales have been segregated financial year wise and tabulated. Accordingly, for the FY 2021-22 as per the seized documents, there was total turnover of Rs. 28,53,72,656/- whereas in the tally data the total sales received of the corresponding period 2021-22 has been declared as Rs. 21,17,427/-. After examining the entire documents, the AO computed the turnover of Rs. 34,42,36,432/- (Rs. 28,53,72,656+ Rs. 5,88,63,776/-), the AO computed the average GP of FY 2019-20, 2020-

3 ITA No. 53/PAT/2026 Green Kumar Keshri 21, 2021-22 and 2022-23 @ 1.46% and accordingly he calculated the net profit on the above turnover @ 1.46% of Rs. 34,42,36,432/- and added back of Rs. 50,25,852/-. Further, para number 5.1 of assessment order the AO made the addition of Rs. 2,55,434/- as per para number 5.3 in addition of Rs. 3,92,307/-. Accordingly, the AO assessed income of Rs. 71,36,720/-.

3.

Aggrieved from the above order, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) issued various notices on different dates but there was no any response from the assessee side. Accordingly, he decided the appeal on the basis of documents available before him and dismissed the appeal of the assessee.

4.

Aggrieved from the above order of the Ld. CIT(A), the assessee is in appeal before the ITAT.

5.

The Ld. Counsel submitted that the notices issued by the Ld.CIT(A) was not seen by the assessee or might have been settled in the spam folder and requested that one more opportunity have granted to the assessee for substantiate of this case.

6.

On the other hand, the Ld. DR relied on the order of lower authorities and submitted that the AO has made addition clearly on the basis of average GP calculated whereas there is difference was noted in

4 ITA No. 53/PAT/2026 Green Kumar Keshri the tally data, sales register the AO has done very kindness to the assessee and objected for giving further chance to the assessee.

7.

Considering the rival submissions and perusing the entire material available on record and the orders of authorities below and paper books filed by the assessee containing page No. 1 to 77. As per the paper book certification, we noted that serial number 1 to 9 was submitted before the revenue authorities but the Ld. CIT(A) has issued various notices but there was no response from the assessee side and we also noted that during the course of search, seizure and survey proceedings, the documents found which has been marked as GKK-01 to GKK-83. Further, we also noted that as per the incriminating documents found there is credible evidence in support of turnover calculated. The AO has computed income on the GP basis ignoring the documents found during the course of search. The search is conducted to discovery of concealed income by the assessee. Therefore, considering the facts of the case and in the interests of justice, we are remitting this issue back to the file of AO for depth examination and decide the issue as per law and the assessee is directed to substantiate with credible evidence in support of the turnover and not seek unnecessary adjournments for early disposal of the case. In case of failure, no second leniency shall be granted to the assessee.

5 ITA No. 53/PAT/2026 Green Kumar Keshri 8. In the result, appeal of the assessee is partly allowed for statistical purposes.

Order pronounced on 22.04.2026.

Sd/- Sd/- (Sonjoy Sarma) (Laxmi Prasad Sahu) Judicial Member Accountant Member Dated: 22.04.2026 AK, Sr. P.S. Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR)

//True copy// By order

Assistant Registrar, Kolkata Benches

6 ITA No. 53/PAT/2026 Green Kumar Keshri

1.

DATE OF DICTATION ............................................ 2. DATE ON WHICH TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ......................................................................... 3. DATE ON WHICH THE APPROVE DRAFT COMES TO THE PS/SR. PS ...................... 4. DATE ON WHICH THE ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT ........................................ 5. DATE ON WHICH THE ORDER COMES BACK TO THE PS/SR. PS........................ 6. DATE OF UPLOADING THE ORDER ON WEBSITE ............................... 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO ........................... 8. DATE ON WHICH THE FILES GOES TO THE BENC CLERK ................................. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT ...................... 10. DATE ON WHICH THE FILES GOES TO THE HEAD CLERK ................................. 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE OF THE ORDER ......................................... 12. THE DATE ON WHICH THE FILE GOES TO DESPATCH SECTION FOR DESPATCH OF THE TRIBUNAL ORDER ...................................... 13. DATE OF DESPATCH OF ORDER ..............................................

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