GAURAV JITESHBHAI JOSHI,RAJKOT vs. INCOME TAX OFFICER, WARD 1(1)(1), RAJKOT

ITA 1000/RJT/2026Status: DisposedITAT Rajkot19 October 2026AY 2022-234 pages
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What were the facts?

The assessee, Gaurav Jiteshbhai Joshi, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Rajkot Bench, for Assessment Year 2022-23. The appeal challenges an order passed by the National Faceless Appeal Centre (NFAC), Delhi, which confirmed additions made by the Assessing Officer (AO). The AO, under Section 143(3) read with Section 144B of the Income Tax Act, 1961, made additions totaling Rs. 3,63,437/-. These additions comprised a disallowance of Loss from House Property of Rs. 2,00,000/-, a deduction of Rs. 1,50,000/- under Section 80C, and a deduction of Rs. 13,437/- under Section 80D. The assessee had declared a total income of Rs. 1,82,520/- in his return, which included salary income, income from other sources, claimed house property loss, and Chapter VI-A deductions. The AO disallowed these claims due to the assessee's failure to provide adequate documentary evidence.

What did the Tribunal hold?

The Tribunal acknowledged the submissions of both the assessee and the revenue. It noted that some of the documents and evidences submitted were self-serving and not entirely reliable. To protect the interest of the revenue and considering the smallness of the disputed amount, the Tribunal found merit in making an estimated addition. The Tribunal directed the Assessing Officer to make an addition of Rs. 36,344/-, which represents a net profit rate of 10% on the total additions of Rs. 3,63,437/-. This estimated addition was intended to address inconsistencies in the documents and evidences presented before the lower authorities and to plug potential revenue leakage. The Tribunal clarified that this adjudication would not serve as a precedent for any other assessment year. The operative direction was to modify the assessment by making the estimated addition.

What were the issues?

1. Whether the disallowance of Loss from House Property of Rs. 2,00,000/- by the Assessing Officer, which was confirmed by the Ld. CIT(A), is justified? (Question of law and fact, relating to Section 24 of the Income Tax Act, 1961). 2. Whether the disallowance of deduction of Rs. 1,50,000/- under Section 80C of the Income Tax Act, 1961, by the Assessing Officer, which was confirmed by the Ld. CIT(A), is justified? (Question of law and fact, relating to Section 80C of the Income Tax Act, 1961). 3. Whether the disallowance of deduction of Rs. 13,437/- under Section 80D of the Income Tax Act, 1961, by the Assessing Officer, which was confirmed by the Ld. CIT(A), is justified? (Question of law and fact, relating to Section 80D of the Income Tax Act, 1961). Assessee's Contention: The assessee argued that all possible documents and evidences were submitted during assessment proceedings and suggested an estimated addition considering the small amount. Revenue's Contention: The Revenue's representative agreed that an estimated addition could be made to protect the revenue's interest, considering the smallness of the amount.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 144B,Section 142(1),Section 80C,Section 80D,Section 24

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

Hearing: 30/09/2026Pronounced: 19/10/2026

Per, Dr. Arjun Lal Saini, AM : Captioned appeal filed by the assessee, pertaining to assessment year 2022-23, is directed against the order passed under Section-250 of the Income- Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 19.05.2026 by the National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income Tax (Appeals) [in short ‘Ld. CIT(A)’], which in turn arises out of an assessment order passed by the Assessing Officer u

The order continues below.

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