DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, BELAGAVI, BELAGAVI vs. SHRI IDREES MOHAMMED, KALABURAGI

ITA 149/PAN/2023Status: DisposedITAT Panaji01 April 2026AY 2017-1830 pages
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What did the Tribunal hold?

The Tribunal held that the AO's rejection of the assessee's books was justified due to non-production of records. However, the estimation of business profit at 10% by the AO was found to be ad-hoc and without proper rationale. The Tribunal directed the AO to restrict the net profit margin to 8% of the reported turnover.

What were the facts?

During a search and survey action, the assessee's business premises were investigated, leading to the discovery of incriminating material. The Assessing Officer (AO) made additions for unexplained cash deposits during demonetization, disallowance of agricultural income, and underreporting of business profit after rejecting the assessee's books.

What were the issues?

Whether the addition for unexplained cash deposits during demonetization was justified, and whether the AO's estimation of business profit after rejecting books was reasonable.

Which sections of the Income-tax Act were involved?

Section 69A,Section 145(3),Section 143(3),Section 28

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Cases cited in this judgment(9)Show list

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Income Tax Appellate Tribunal, PANAJI BENCH, GOA

Before: HON’BLE SHRI PAVAN KUMAR GADALE & SHRI G. D. PADMAHSHALI

For Appellant: Mr Ramesh Mudhol [‘Ld. AR’]
For Respondent: Mr Sashi Saklani [‘Ld. DR’]
Pronounced: 01/04/2026

PER G. D. PADMAHSHALI; This appeal is filed by the Revenue u/s 253(2) of the Income-tax

Act, 1961 [‘the Act’] challenges the order dt. 29/05/2023 passed

u/s 250 of the Act by Commissioner of Income Tax(Appeals-2),

Panaji [‘Ld. CIT(A)’] which emanated from order of assessment

dt. 27/12/2019 passed 143(3) of the Act by Dy. Commissioner

of Income Tax Central Circle, Belagavi [‘Ld. AO’] anent to assessment year 2017-18. [‘AY’]

ITAT-Panaji DCIT Vs Idrees Mohammed ITA No. 149/PAN/2023 AY: 2017-18

2.

Succinctly stated pertinent facts born out of case records & rival party’s submissions are that; 2.

The order continues below.

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