KLG JEWELLERS, PATIALA,PATIALA vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2, CHANDIGARH, CHANDIGARH

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ITA 1236/CHANDI/2025Status: DisposedITAT Chandigarh06 April 2026AY 2020-20213 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Commissioner of Income Tax (Appeals) held that only the Gross Profit (GP) component of the suppressed sales represented taxable income and estimated the profit rate at 20%. The Income Tax Appellate Tribunal found this estimation to be on the higher side considering the assessee's regular GP rate of 9.48% and reduced it to 10% of the suppressed sales.

What were the facts?

The assessee, a jewellery business, was subjected to a search action, leading the Assessing Officer (AO) to allege unaccounted sales of Rs. 63,96,384/-. The AO added this amount to the assessee's income as suppressed income.

What were the issues?

Reasonable estimation of Gross Profit rate on suppressed sales made pursuant to a search action.

Which sections of the Income-tax Act were involved?

Section 132,Section 153A,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

ASSISTANT REGISTRAR

ITAT CHANDIGARH

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