AASHAQ HUSSAIN KHAN,BARAMULLAH V. INCOME TAX OFFICER, SRINAGAR

ITA 616/ASR/2024

AI Insights

The case involves Shri Aashaq Hussain Khan Wagoora, who appealed against the assessment order for the Assessment Year 2017-18, which was based on best judgment under section 144 of the Income Tax Act. The appellant did not file a return of income and was non-compliant during the assessment proceedings. The assessing officer added a significant amount to the appellant's income, including Rs.13.31 Lacs deposited during the demonetization period, and estimated the remaining deposits as business income at 8%. The Commissioner of Income Tax (Appeals) upheld this assessment due to the absence of any reply from the appellant. The Tribunal, however, found the estimation of 8% on the appellant's business income to be high, considering the low profit margin in the appellant's business of selling sim cards and recharge coupons. The Tribunal also questioned the separate addition for post-demonetization deposits, suggesting it was an artificial bifurcation of business receipts.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831739 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 14-11-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHARAN DASS LD.
• Assessee Lawyers: WRITTEN SUBMISSIONS
• Keywords: Set aside; Business income
• Section: 144

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AMRITSAR PHYSICAL HEARING BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND SHRI UDAYAN DAS GUPTA, JM आयकर अपील सं. / ITA No.616/ASR/2024 (निर्धारण वर्ा / Assessment Year: 2017-18) Shri Aashaq Hussain Khan Wagoora, Darahu Frasta Wari, Baramulla J & K – 193201 बिधम/ Vs. ITO Ward-1 Srinagar - 192301 स्थायीलेखासं./जीआइआरसं./PAN/GIR No. BGHPK-0549-L (अपीलाथी/Appellant) : (प्रत्यथी / Respondent) अपीलाथीकीओरसे/ Appellant by : Written submissions प्रत्यथीकीओरसे/Respondent by : Sh. Charan Dass (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 20-01-2026 घोषणाकीतारीख /Date of Pronouncement : 20-01-2026 आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC dated 02-08-2024 in the matter of an assessment framed by Ld. AO on best judgment basis u/s 144 on 06-12-2019. The registry has noted delay of 44 days in the appeal which stand condoned. The assessee has filed written submissions along with its grounds of appeal. The Ld. Sr. DR pleaded for dismissal of the appeal. After due consideration, the appeal is disposed-off as under. Printed from counselvise.com 2 2. The assessee did not file return of income and remained non- compliant during assessment proceedings. It transpired that the assessee deposited Rs.316.07 Lacs in its bank account out of which Rs.13.31 Lacs were deposited during demonetization period. The amount of Rs.13.31 Lacs was accordingly added u/s 69A. On the remaining deposits of Rs.302.76 Lacs, Ld. AO estimated business income @8% and framed the assessment. The Ld. CIT(A) confirmed the assessment for want of any reply from the assessee. Aggrieved, the assessee is in further appeal before us. 3. From assessee’s submissions, it appears that the assessee has acted as seller of sim cards and recharge coupons. The ledger from Bharti Airtel Ltd. has been placed on record. It has been submitted that the profit margin in this line of business is very low and therefore, the estimation of 8% is on the higher side. The assessee has also assailed separate addition for post-demonetization deposits on the ground that it is only an artifical bifurcation whereas the despoits represent business receipts only. Finding substance in these pleadings, we set aside the impugend order and restore the appeal back to the file of Ld. CIT(A) for fresh adjudication by considering these documents with a direction to the assessee to plead and prove its case forthwith. 4. The appeal stands allowed for statistical purposes. Order pronounced on 20th January, 2026. Sd/- Sd/- Printed from counselvise.com 3 (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 20-01-2026 आदेश की प्रनिनलनप अग्रेनर्ि /Copy of the Order forwarded to : 1. अपीलाथी/Appellant 2. प्रत्यथी/Respondent 3. आयकरआयुक्त/CIT 4. ववभागीयप्रवतवनवि/DR 5. गार्डफाईल/GF ASSISTANT REGISTRAR ITAT AMRITSAR Printed from counselvise.com "