MUKUND OIL MILLS PVT. LTD.,KOLKATA vs. DCIT, CENTRAL CIRCLE 3(4),, KOLKATA

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ITA 2534/KOL/2025Status: DisposedITAT Kolkata12 January 2026AY 2012-2013Bench: SHRI GEORGE MATHAN (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer cannot make disallowances on an estimation basis when the books of accounts are not rejected. The disallowance should be specifically identified with supporting evidence.

What were the facts?

The assessee, engaged in oil extraction, appealed against an order disallowing 20% of travelling and miscellaneous expenses. The Assessing Officer disallowed these expenses on an estimation basis without rejecting the assessee's audited books of accounts.

What were the issues?

Whether ad-hoc disallowances on estimation basis are permissible without rejecting the books of accounts.

Which sections of the Income-tax Act were involved?

IT Act

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH KOLKATA

Before: SHRI GEORGE MATHAN

Hearing: 12/01/2026Pronounced: 12/01/2026

O R D E R This is an appeal filed by the assessee against the order dated 19.09.2025 passed by the ld.Addl/JCIT(A), Faridabad for the assessment year 2012-2013.

2.

It was submitted by the ld.AR that the assessee is in the business of extraction of oil. It was the submission that the assessee’s books were audited. It was the submission that the Assessing Officer in the course of assessment disallowed 20% of the travelling expenses and the miscellaneous expenses without rejecting the books of accounts of the assessee. It was the submission that the disallowance on estimation basis should not be permitted.

3.

In reply, ld.Sr. DR vehemently supported the orders of the ld. Assessing Officer and ld. CIT(A).

4.

I have considered the rival submissions. A perusal of the facts in the present case clearly shows that the Assessing Officer has made adhoc

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