AGGARWAL CONSTRUCTION CO,CHANDIGARH V. DEPUTY COMMSSIONER OF INCOME TAX CIRCLE-1, BATHINDA

ITA 384/ASR/2023

AI Insights

The case involves M/s Aggarwal Construction Co., which appealed against the order of the Commissioner of Income Tax (Appeals), NFAC, confirming the assessment framed by the AO under section 143(3) of the Income Tax Act for the Assessment Year 2016-17. The primary issues in the appeal were the estimated profit rate applied by the AO and the addition of Rs. 8 Lacs as unsecured loans under section 68. The Tribunal found merit in reducing the profit rate on the sale of material to 1.25% based on precedents and accepted the appellant's evidence regarding the unsecured loans, leading to the deletion of the addition.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 836604 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 27-12-2023
• Other Referred Cases: AY 2014-15
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHARAN DASS LD.
• Assessee Lawyers: SUDHIR SEH GAL LD
• Section: 143(3)

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AMRITSAR VIRTUAL HEARING BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND SHRI UDAYAN DASGUPTA, JM आयकर अपील सं. / ITA No.384/ASR/2023 (िनधाŊरण वषŊ / Assessment Year: 2016-17) M/s Aggarwal Construction Co. H No. 613, Sector – 36B Chandigarh - 160036 बनाम/ Vs. DCIT Circle - 1 Central Revenue Building, Civil Lines Punjab - 151001 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAMFA-7129-G (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Sh. Sudhir Sehgal (Advocate) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Sh. Charan Dass (Addl. CIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 05-02-2026 घोषणाकीतारीख /Date of Pronouncement : 11.02.2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016- 17 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC dated 03-11-2023 in the matter of an assessment framed by Ld. AO u/s 143(3) on 21-12-2018. Though the assessee has raised multiple grounds of appeal, however the only grounds urged by Ld. AR before us are qua estimated profit rate and addition Printed from counselvise.com 2 of Rs.8 Lacs as made by Ld. AO u/s 68. Having heard rival submissions, the appeal is disposed-off as under. 2. The assessee acted as a civil contractor. During asessment proceedings, the Ld. AO rejected books of the assessee and estimated profit rate of 2% on gross sale of material and 6% on gross contract receipts. The Ld. AO also made addition of Rs.8 Lacs being unsecured loans as taken from Shri Puran Singh on 15-09-2015. Since the assessee did not file the requisite documents, the amount of Rs.8 Lacs was added u/s 68. The Ld. CIT(A) confirmed the action of Ld. AO against which the assessee is in further appeal before us. 3. We find that in AY 2014-15, on similar facts, Ld. CIT(A) vide order dated 15-02-2019 has reduced profit rate of 2% to 1.25%. Therefore, taking the same view, we direct Ld. AO to estimate profit rate of 1.25% on sale of material. The estimation of 6% on gross contract receipts is correct. The corresponding grounds stands partly allowed. 4. So far as the unsecured loan of Rs.8 Lacs is concerned, Ld. AR has placed on record copy of bank statement of Shri Puran Singh. The perusal of the same would show that the unsecured loan has been advanced through banking channels and the same has been sourced by the lender out of FDR maturities. Therefore, the onus of Sec.68 stood discharged by the assessee. This addition is thus deleted. This ground stand allowed. No other ground has been urged in the appeal. Printed from counselvise.com 3 5. The appeal stands partly allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. -Sd- -Sd- (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:11.02.2026 आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AMRITSAR Printed from counselvise.com "