FRIENDS TRANSPORT CARRIER,JAGRAON vs. ITO, JAGRAON

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ITA 951/CHANDI/2024Status: DisposedITAT Chandigarh07 October 2025AY 2020-21Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal, observing the assessee's failure to substantiate expenses, estimated the income at 8% of total receipts, citing presumptive provisions of Section 44AD.

What were the facts?

The assessee claimed transport receipts and expenditures, but failed to substantiate the expenses. The AO disallowed 75% of the expenses, leading to an addition. The CIT(A) upheld this decision.

What were the issues?

Whether the assessee substantiated their claimed expenditures against transport receipts? Whether the estimation of income based on presumptive provisions is justified when expenses are unsubstantiated?

Which sections of the Income-tax Act were involved?

Section 144,Section 57,Section 44AD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI LALIET KUMAR JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Pronounced: 07/10/2025
6.

Moga Road Jagraon बनाम/ Vs. Near Swaraj Tractor Agency, Jagraon, Punjab Punjab – 142026 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AAGFF-7789-P (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : None ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl.CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 17-09-2025 घोषणाकीतारीख /Date of Pronouncement : 07/10/2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2020-21 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 08-08-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 20-09-2022. At the time of hearing, none appeared for assessee. Accordingly, the appeal was heard with the able assistance of Ld. Sr.

DR who pleaded for dismissal of the appeal. Upon perusal of case records, the appeal is disposed-off as under.

2.

The assessee reflected transport receipts of Rs.81.89 Lacs and claimed deduction of expenditure for Rs.80.31 Lacs u/s 57. The Ld. AO disallowed 75% of the expenses for want of evidences from the assessee and made addition of Rs.60.11 Lacs. Upon further appeal, Ld. CIT(A) dismissed the appeal for the same very reasons. Aggrieved, the assessee is in further appeal before us.

3.

It emerges that the assessee has earned transport receipts and incurred various expenditure against the same. However, the assessee has failed to substantiate the expenditure. Taking cue from presumptive provisions of Sec.44AD, we estimate the income of the assessee @8% of total receipts of Rs.81,89,283/- which comes to Rs.6,55,143/-. The Ld. AO is directed to re-compute the income of the assessee.

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