FRIENDS TRANSPORT CARRIER,JAGRAON V. ITO, JAGRAON

ITA 951/CHANDI/2024

AI Insights

The case involves M/s Friends Transport Carrier, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was related to the assessment year 2020-21, where the Assessing Officer had disallowed 75% of the claimed expenditures due to lack of evidence, resulting in an addition of Rs.60.11 Lacs to the assessee's income. The CIT(A) upheld this decision. The Tribunal, upon reviewing the case, decided to estimate the income based on the presumptive provisions of Section 44AD of the Income Tax Act, applying an 8% rate on the total receipts declared by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780496 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Appeal Filed On: 07-09-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE; RANJIT KAUR LD.
• Section: 144

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.951/CHANDI/2024 (िनधाŊरणवषŊ / Assessment Year: 2020-21) M/s Friends Transport Carrier Shop No. 6. Moga Road Near Swaraj Tractor Agency, Jagraon, Punjab – 142026 बनाम/ Vs. ITO Jagraon Punjab ˕ायीलेखासं./जीआइआरसं./PAN/GIR No. AAGFF-7789-P (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : None ŮȑथŎकीओरसे/Respondent by : Dr. Ranjit Kaur (Addl.CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 17-09-2025 घोषणाकीतारीख /Date of Pronouncement : 07/10/2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2020-21 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 08-08-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 20-09-2022. At the time of hearing, none appeared for assessee. Accordingly, the appeal was heard with the able assistance of Ld. Sr. Printed from counselvise.com 2 DR who pleaded for dismissal of the appeal. Upon perusal of case records, the appeal is disposed-off as under. 2. The assessee reflected transport receipts of Rs.81.89 Lacs and claimed deduction of expenditure for Rs.80.31 Lacs u/s 57. The Ld. AO disallowed 75% of the expenses for want of evidences from the assessee and made addition of Rs.60.11 Lacs. Upon further appeal, Ld. CIT(A) dismissed the appeal for the same very reasons. Aggrieved, the assessee is in further appeal before us. 3. It emerges that the assessee has earned transport receipts and incurred various expenditure against the same. However, the assessee has failed to substantiate the expenditure. Taking cue from presumptive provisions of Sec.44AD, we estimate the income of the assessee @8% of total receipts of Rs.81,89,283/- which comes to Rs.6,55,143/-. The Ld. AO is directed to re-compute the income of the assessee. 4. The appeal stands partly allowed. Order pronounced on 07/10/2025 Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 07/10/2025 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 Printed from counselvise.com 3 ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "