ITAT Chandigarh Judgments — August 2025

The Tribunal found that the assessee had indeed furnished complete Form No.15G / 15H with all requisite details. Noting that similar demands for earlier assessment years (2013-14 & 2014-15) were deleted by the CIT(A) based on identical documents, and that the CIT(A) had failed to consider these documents for the current AY 2016-17, the Tribunal deleted the impugned demand.

The Tribunal, considering principles of natural justice and potential communication gaps in the faceless regime, decided to grant the assessee another opportunity. Consequently, the impugned order was set aside, and the appeal was restored to the CIT(A) for a de novo adjudication on merits, with a direction to the assessee to present its case forthwith.

The Tribunal found that the assessee's presumptive income declared u/s 44AD was supported by bank credits and VAT/GST returns, and no detailed books were required under that section. Citing acceptance of similar income in a prior AY 2017-18 assessment u/s 143(3), the Tribunal ruled that the AO's addition of Rs. 34.75 Lacs was based on presumptions and was unsustainable. The presumptive income as declared by the assessee u/s 44AD is to be accepted.

The Tribunal acknowledged the assessee's cash-intensive business, VAT compliance, and maintained cash book, concluding that the cash deposits were primarily from business sales. However, due to the assessee's non-compliance in fully substantiating the claim, a lumpsum addition of Rs.2 Lacs was confirmed as business income, with the remaining addition being deleted. The AO was directed to re-compute the income.