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Additions Based on Staff “Observations” and Demonetization Deposits Set Aside — ITAT Allahabad Orders Fresh Assessment in Rajendra Tripathi vs. ITO Ward-1(4), Maharajganj (ITA No.100/ALLD/2024, AY 2017-18)
Facts of the CaseThe assessee, engaged in wholesale trading of sugar, edible
oil, and rice, filed a return declaring income of ₹12,90,992. During the
demonetization period, he deposited ₹32,16,500 in old currency n...
Cash Deposits Treated as Unexplained Income Remanded for Fresh Examination — Awadhesh Kant Tripathi vs. ITO, Ward-1(1), Allahabad (ITAT Allahabad)
Facts of the CaseThe assessee, Awadhesh Kant Tripathi, was found through AIR
information and departmental database to have made cash deposits of ₹12,93,300
in his bank account during Financial Year 2011-12 (relevant ...
Cash Deposits Cannot Be Treated as Unexplained When Income Declared u/s 44AD — ITAT Allahabad Deletes Addition in Panna Lal Prajapati vs. ITO Ward-3(2), Mirzapur (ITA No.87/ALLD/2024, AY 2011-12)
Facts of the CaseThe Assessing Officer observed substantial cash deposits
aggregating ₹30,63,500 in the assessee’s bank accounts and initiated
reassessment proceedings under section 147. The assessee, a small scrap...
DVO Report Can Trigger Reassessment, but No Addition if Valuation Difference is Within Tolerance — ITAT Allahabad Deletes Addition u/s 69 in Om Prakash Singh vs. ACIT, Central Circle, Allahabad (ITA No.114/Alld/2023, AY 2017-18)
Facts of the CaseFollowing a survey under section 133A at medical
establishments connected with the assessee, assessment was completed under
section 143(3). Subsequently, the Assessing Officer referred the construction...
Inflated Turnover in Revised Return Filed for Tender Qualification Requires Fresh Verification — ITAT Allahabad Remands Case in M/s N. Chaurasia Associates vs. ACIT Circle-3, Mirzapur (ITA Nos. 29 & 41/ALLD/2019, AY 2014-15)
Facts of the CaseThe assessee, a civil contractor, originally filed its return
declaring contract receipts of ₹5.46 crore and income of ₹18.67 lakh. The
return was processed under section 143(1). Subsequently, the ...
Addition for Suppressed Sales & Alleged Unaccounted Purchases Unsustainable Without Corroborative Evidence — ACIT, Allahabad vs. M/s Kesarwani & Co. (ITAT Allahabad)
Facts of the CaseA search and seizure operation was conducted at the premises
of the assessee firm, M/s Kesarwani & Co. During assessment proceedings
under Section 143(3), the Assessing Officer (AO) made multiple a...
Reassessment Based on Form 16A Discrepancy Valid, but Addition for Alleged Undisclosed Receipts Deleted — ITAT Allahabad in M/s Deora Electric Works vs. DCIT Circle-1, Allahabad (ITA Nos.99 & 101/Alld/2020, AY 2009-10)
Facts of the CaseThe assessee filed its return declaring income of
₹17,40,230, and assessment was completed under section 143(3). Later, the
Assessing Officer observed that contractual receipts shown in the accounts ...
Demonetization Cash Deposits from Petrol Pump Sales Cannot Be Treated as Unexplained Without Disproving Books — ITAT Allahabad Deletes Addition u/s 69A in Asha Tewari vs. ITO Maharajganj (ITA No.75/ALLD/2024, AY 2017-18)
Facts of the CaseThe assessee, an authorized dealer of Indian Oil Corporation
operating a petrol pump, deposited substantial cash during the demonetization
period. The Assessing Officer observed deposits of ₹1.51 cro...
Profit Estimation in Survey Cases — ITAT Allahabad Fixes 3.5% Net Profit for Sub-Contractor After Rejection of Books u/s 145(3) in M/s Jyoti Erectors Pvt. Ltd. vs. DCIT Circle-2, Allahabad (ITA No.77/ALLD/2020, AY 2016-17)
Facts of the CaseA survey under section 133A was conducted at the premises of
the assessee company. During the survey, a statement of a director/partner
indicated estimated turnover and income figures. Subsequently, th...
Section 44AD Not Applicable to Co-operative Society — ITAT Allahabad Sets Aside Best Judgment Assessment on Demonetization Deposits in Itaili Sadhan Sahkari Samiti Ltd. vs. ITO-2(4), Fatehpur (ITA No.58/ALLD/2024, AY 2017-18)
Facts of the CaseThe assessee, a registered co-operative society engaged in
supplying seeds and fertilizers to its members, deposited ₹16,44,100 in cash
during the demonetization period and did not file a return with...