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

ITA 1883/CHNY/2025Status: DisposedITAT Chennai30 December 2025AY 2022-2367 pages
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What did the Tribunal hold?

The Tribunal held that expenses incurred for business expediency, even if not recorded in regular books, should be allowed. The CIT(A)'s estimation of profit on disputed transportation and purchase expenses was upheld, and certain additions were deleted as they were subsumed in peak cash balances.

What were the facts?

During a search operation, unaccounted transactions were found on a hard disk, including inflated transport bills and bogus purchases. The assessee claimed these expenses were for business expediency, while the Revenue treated them as income. The CIT(A) partially allowed the assessee's appeal, estimating profit on disputed expenses.

What were the issues?

Whether expenses incurred for business expediency, not recorded in regular books, are allowable as deductions. Whether additions made on account of alleged bogus purchases and unexplained money are justified when already covered in peak cash balances.

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: CHENNAI 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 Income Tax, Central Circle-2(4), Chennai. 6C, 6th Floor, Gaiety Palace I/L, Blackers Road, Anna Road H.O., Chennai - 600 002. 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), Chennai.

Integrated Service Point Ltd., (Formerly Integrated Service Point Pvt. Ltd.,)

Vs. 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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