MANISH KHANDELWAL,JAGDALPUR vs. INCOME TAX OFFICER, JAGDALPUR

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ITA 34/RPR/2026Status: HeardITAT Raipur10 February 2026AY 2017-18Bench: SHRI PARTHA SARATHI CHAUDHURY (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the estimation of profit remained substantively incomplete due to the assessee's non-compliance. Therefore, a final opportunity is granted to the assessee to furnish books of account and other details to the AO for a fresh assessment.

What were the facts?

The assessee failed to produce books of account before the Assessing Officer (AO) despite several opportunities. Consequently, the assessment was completed under Section 144, estimating profit at 8% under Section 44AD.

What were the issues?

Whether the assessment completed under Section 144 based on estimated profit was justified without providing the assessee a final opportunity to produce documents.

Which sections of the Income-tax Act were involved?

Section 144,Section 44AD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH “SMC”, RAIPUR

Before: SHRI PARTHA SARATHI CHAUDHURY

For Respondent: Dr. Priyanka Patel, Sr. DR
Hearing: 10.02.2026Pronounced: 10.02.2026

आदेश / ORDER

PER PARTHA SARATHI CHAUDHURY, JM

1.

The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, dated 22.12.2025 for the assessment year 2017-18 as per the grounds of appeal on record.

2. That as evident from Para 3.2 of the order of the Ld. CIT(Appeals)/NFAC that in spite of several opportunities being provided to the assessee failed to produce books of account before the A.O and the assessment order was therefore completed u/s. 144 of the Income Tax Act, 1961 (for short ‘the Act’). That the A.O was correct in estimating the profit @ 8% u/s. 44AD of the Act.

3.

That when the matter came up for hearing, none appeared for the assessee nor any adjournment petition has been filed. Considering the aforesaid para i.e. 3.2 of the Ld. CIT(Appeal)/NFAC’s order that the adjudication regarding the estimation of profit @ 8% remained substantively incomplete due to non-compliance by the assessee before the A.O and for non-furnishing of the books of account and therefore, it would be fit and proper in the interest of substantive justice to provide final opportunity to the assessee enabling him to furnish books of account and other details before the A.O and after careful consideration of these

3 Manish Khandelwal Vs. ITO, Ward-Jagdalpur (C.G.)

A.O shall pass necessary order as per law. Needless to mention, principles of natural justice always to be complied with. I order accordingly.

4.

As per the above terms grounds of appeal of the assessee are allowed for statistical purposes.

5.

In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 10th day of February, 2026.

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