Income Tax Addition for Turnover Mismatch Set Aside Due to Lack of Evidence: ITAT Deletes Disallowance under Section 40A(3) as Income was Estimated [Read Order]

The ITAT asserted that documentary support remains essential for deferring tax recognition to subsequent years. While granting substantial relief, the ITAT also emphasised procedural fairness by remanding issues that required factual verification
By Eeva Mary Sanil - On April 8, 2025 9:13 am - 2 mins read
ITAT - ITAT Raipur - Income Tax Addition - Addition for Turnover Mismatch - TAXSCAN

In a recent ruling, the Raipur Bench of the Income Tax Appellate Tribunal (ITAT) partly allowed appeals for multiple assessment years by holding that where income is assessed on an estimated basis, separate disallowances, such as those under Section 40A(3), are not sustainable. The assessee, Nishant Jain, a civil contractor engaged in government infrastructure projects,…

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