ATOP FOOD PRODUCTS PVT. LTD.,MORBI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 1(1), RAJKOT, RAJKOT

ITA 932/RJT/2025Status: DisposedITAT Rajkot14 September 2026AY 2015-167 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the rejection of books of account was unjustified as the assessee provided a plausible explanation for the decline in gross profit rate and the AO did not point out any specific defects. The Tribunal also found that the canteen expenses were not claimed twice, as demonstrated by the assessee's reconciliation.

What were the facts?

The assessee, a private limited company, had its books of account rejected by the Assessing Officer (AO) due to a decline in gross profit rate. The AO estimated the gross profit at a higher rate, leading to an addition to income. Additionally, canteen expenses were disallowed on the grounds of being claimed twice.

What were the issues?

Whether the rejection of books of account based solely on a decline in gross profit rate is justified? Whether canteen expenses were claimed twice?

Which sections of the Income-tax Act were involved?

Section 145(3),Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. BRR Kumar & Shri Sonjoy Sarma

For Appellant: Shri D. M. Rindani, Ld. AR
For Respondent: Shri Shishir Kumar, Ld. Sr. DR
Hearing: 29/07/2026Pronounced: 14/09/2026

Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2015-16, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the Ld. Commissioner of Income Tax (Appeals) [hereinafter referred to as ‘Ld.CIT(A)’], dated 29.10.2025, which in turn arises out of an order passed by assessing officer u/s. 143(3) of the Act,

The order continues below.

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