Estimation of income without having any seized material or any material having corroborating evidence is bad in law

Last updated: 20 January 2021
Quick Summary
The Income Tax Appellate Tribunal has ruled that estimating a taxpayer's income without any seized material or corroborating evidence is unlawful. This decision stems from appeals concerning assessment years 2016-17 and 2017-18, where the Assessing Officer's (AO) estimation of income was deleted by the Commissioner of Income Tax (Appeals). The tribunal's order consolidates these appeals, highlighting the importance of evidence in income determination.

Court :
ITAT Visakhapatnam

Brief :
These appeals by the Revenue and the cross objections by the assessee are directed against the separate orders of Commissioner of Income Tax (Appeals)-3, Visakhapatnam, both dated 30/06/2020 for the Assessment Years 2016-17 & 2017-18. Since facts and the issues are common in both the appeals, they are clubbed and heard together and disposed of by way of this consolidated order. 

Citation :
ITA 184/VIZ/2020

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

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