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Addition @ 8% of Bank Deposits u/s 44AD Without Opportunity Set Aside — ITAT Allahabad Restores Case Despite NFAC Dismissal on Technical Grounds in Guddu Kumar Gupta vs. ACIT/ITO (NFAC), Delhi (ITA Nos.59 & 70/ALLD/2024, AY 2013-14)
Facts of the CaseThe assessee had not filed a return of income for the relevant
year. The Department received information that cash deposits amounting to
₹1,46,63,200 had been made in his savings bank account. Despit...
Estimation of Profit After Rejection of Books Must Follow Past History — Arbitrary 8% NP Rate on Contract Receipts Rejected by ITAT Allahabad in DCIT vs. Shri Shakeel Haider, Amethi (AYs 2011-12 & 2012-13)
Facts of the CaseThe assessee, a civil contractor engaged in road construction
work for NHAI and other authorities, filed returns for AYs 2011-12 and 2012-13
declaring income from contract receipts. During assessment p...
Revised Return Filed to Correct Accountant’s Error Requires Examination of Books — ITAT Allahabad Orders De Novo Assessment in Ayush Jaiswal vs. NFAC (ITA No.20/ALLD/2024, AY 2020-21)
Facts of the CaseThe assessee initially filed a return declaring income of
₹14,49,900 and subsequently filed a revised return declaring ₹6,17,900. The
case was selected for scrutiny due to the significant reduction...
Old Trade Creditors Cannot Be Treated as Bogus & DVO Report Not Binding Without Considering Objections — ITAT Allahabad Grants Partial Relief in M/s Kesarwani Zarda Bhandar vs. JCIT Central Circle, Allahabad (ITA Nos. 80, 89–93/ALLD/2023, AYs 2004-05 to 2009-10)
Facts of the CaseA search under section 132 was conducted on the assessee’s
premises on 27.08.2009, followed by assessments under section 153A. Additions
were made on two principal issues:
Alleged
bogus sundr...
Demonetization Cash Deposits May Be Business Receipts — ITAT Allahabad Remands for Verification; Section 44AD May Apply in Aulad Husain vs. CIT(A), Delhi (ITA No.39/ALLD/2024, AY 2017-18)
Facts of the CaseUnder Operation “Clean Money,” the Department identified
persons who had deposited substantial cash during the demonetization period but
had not filed returns. The assessee had deposited ₹14,90,9...
Delay Due to Counsel’s Negligence Should Not Defeat Substantive Justice — ITAT Allahabad Restores Salary Case for Statutory Deductions in Anurag Jaiswal vs. ITO-2(1), Allahabad (ITA No.77/ALLD/2024, AY 2020-21)
Facts of the CaseThe assessee, a medical professional employed at King George’s
Medical University, originally filed a return declaring income of ₹9,48,020 and
claiming refund of excess TDS. Subsequently, on advice...
No Addition for Alleged Suppressed Production Without Rejection of Books or Evidence of Unaccounted Sales — ITAT Allahabad Dismisses Revenue’s Appeal in DCIT/ACIT Central Circle vs. M/s Kesarwani Zarda Bhandar (AYs 2011-12 & 2012-13)
Facts of the CaseThe Revenue filed appeals against orders of the CIT(A)
deleting additions made by the Assessing Officer on account of alleged
suppression of production for Assessment Years 2011-12 and 2012-13.The Asse...
Additions for Alleged Suppressed Production Unsustainable Without Concrete Evidence — ITAT Allahabad Upholds Deletion in ACIT/DCIT Central Circle, Allahabad vs. M/s Kesarwani Zarda Bhandar (AYs 2011-12 & 2012-13)
Facts of the CaseThe Revenue filed appeals challenging the orders of the CIT(A)
which had deleted substantial additions made by the Assessing Officer on
account of alleged suppression of production in the assessee’s ...
Cash Deposits from Presumptive Business Cannot Be Taxed as Unexplained When Similar Income Accepted in Earlier Years — ITAT Allahabad Applies Consistency Principle in Amit Chopra vs. ITO-1(1), Allahabad (ITA No.34/ALLD/2024, AY 2011-12)
Facts of the CaseBased on AIR information, the Department found that the
assessee had deposited ₹35,17,115 in a savings bank account but had not
originally filed a return of income for the relevant year. Reassessment...
Ex-Parte Dismissal by NFAC Without Considering Physical Submissions & Remand Report Violates Natural Justice — ITAT Allahabad Restores Appeal in Rohit vs. ITO, Ambedkar Nagar (ITA No.102/ALLD/2024, AY 2012-13)
Facts of the CaseThe assessee filed an appeal against an order of the CIT(A),
NFAC, which had arisen from a best-judgment assessment under section 144. The
appeal before the Tribunal itself was delayed by 692 days. The...