ITA No. 6232/DEL/2025

Parties Involved

Facts Summary

The assessee, Shri Ashish Tyagi, did not file his return of income for A.Y. 2020-21. Based on information available on the Insight Portal of the department, the Assessing Officer (AO) noted that the assessee had made transactions amounting to Rs. 75,00,000/- during the year. Hence, a notice under section 148 was issued to the assessee on 14.03.2024, in response to which a return declaring income of Rs. 42,40,713/- was filed on 05.12.2024. The assessee was engaged in providing real estate agent services and had received commission income of Rs. 75,00,000/- from M/s. Gaursons Promoters Pvt. Ltd. against which expenses amounting to Rs. 32,65,992/- had been claimed. As the assessee could not submit complete documentary evidences in support of these expenses, the AO disallowed 50% of the expenses claimed and made an addition of Rs. 16,32,996/- to the returned income. Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), who reduced the disallowance from 50% to 25% of the expenses claimed. Further aggrieved, the assessee filed an appeal before the Tribunal.…

Legal Issues

• 1. Disallowance of expenses on estimate basis.

Judgment Outcome

Decided in favour of Assessee.

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