AMMATI VENKATACHALAPATHISETTY SATISH KUMAR,CHINTAMANI vs. INCOME TAX OFFICER, WARD-1,, CHIKKABALLAPUR

ITA 2040/BANG/2025Status: DisposedITAT Bangalore24 February 2026AY 2017-1820 pages
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What did the Tribunal hold?

The Tribunal held that the addition on account of unexplained investment in shops and cash deposits was not justified. For the unaccounted sales, the addition should be computed based on gross profit and taxed under normal rates, not under Section 115BBE.

What were the facts?

The assessee made an investment in shops for Rs. 22.75 lakhs and cash deposits of Rs. 19 lakhs, which were not adequately explained. During a survey, the assessee admitted to daily sales figures that, when extrapolated, suggested unaccounted sales and purchases.

What were the issues?

Whether the investment in shops and cash deposits were unexplained. Whether the addition for unaccounted sales was correctly computed and taxed.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 133A,Section 133(6),Section 44AD,Section 115BBE,Section 250

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Income Tax Appellate Tribunal, SMC BENCH, BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

For Appellant: Smt. Sheettal, Advocate
For Respondent: Shri Ganesh R Ghale, Advocate – Standing
Pronounced: 03.02.2026

PER WASEEM AHMED, ACCOUNTANT MEMBER:

This set of 3 appeals, filed at the instance of the assessee, is directed against the common order of the Learned Commissioner of Income Tax (Appeals)-15 Bengaluru (hereafter the learned CIT(A)), under section 250 of the Income Tax Act, 1963 (hereafter the Act) for A.Ys. 2015-16 & 2017-18 dated 16th August 2025 and separate order for A.Y. 2018-19 dated 16th August 2025. These appeals were heard together, accordingly adjudicated together hereunder. First, we take up assessee's appeal in ITA No. 2139/Bang/2025 for A.Y. 2015-16 as a lead ca

The order continues below.

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