INTEGRATED SERVICE POINT LTD.,CHENNAI vs. ACIT, CENTRAL CIRCLE-2(4), CHENNAI

ITA 1881/CHNY/2025Status: DisposedITAT Chennai30 December 2025AY 2016-1767 pages
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What did the Tribunal hold?

The CIT(A) accepted that facilitation expenses, termed 'speed money', incurred for business expediency are allowable. The tribunal upheld the CIT(A)'s decision to estimate profit on alleged bogus purchases and allow a portion of transportation expenses, while deleting other additions.

What were the facts?

During a search operation, a hard disk was seized containing details of unrecorded monetary transactions. The assessee claimed these transactions, including inflated transportation bills and bogus purchases, were for business expediency and to facilitate operations. The Assessing Officer (AO) disallowed the entire expenditure.

What were the issues?

Whether expenses incurred for business expediency, even if not recorded in regular books, are allowable. The taxability of alleged bogus purchases and unexplained money.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 69A,Section 115BBE,Section 69C

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Cases cited in this judgment(3)Show list

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आयकर अपीलीय अधिकरण 'सी' न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL 'C' BENCH: CHENNAΙ मप्सनीय श्री मनु कुमार गिरि, न्यायिक सदस्य एवं मप्सनीय श्री जगदीश, लेख सदस्य के समक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI HON'BLE JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ ITA Nos.1881, 1882 & 1883/Chny/2025 निर्धारण वर्ष / Assessment Years: 2016-17, 2019-20 & 2022-23 The Dy./Asst. Commissioner of Central Circle-2(4), 6C, 6th Floor, Gaiety Palace I/L, Blackers Road, Anna Road H.O., Chennai - 600 002.

Chennai. PAN: AAACI 9527P (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) आयकर अपील सं./ ITA Nos.1874, 1876 & 1879/Chny/2025 निर्धारण वर्ष / Assessment Years: 2016-17, 2019-20 & 2022-23 The Dy./Asst. Commissioner of Income Tax, Central Circle-2(4), 6C, 6th Floor, Gaiety Palace I/L, Blackers Road, Anna Road H.O., Chennai - 600 002. PAN: AAACI 9527P (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr. Y. Sridhar, FCA प्रत्यर्थी की ओर से /Revenue by : Mr.

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