SHREE RAJMOTI INDUSTRIES,RAJKOT vs. ASSISSTANT COMMISSIONER OF INCOME TAX -CIRCLE 2(1), RAJKOT

ITA 781/RJT/2026Status: DisposedITAT Rajkot09 September 2026AY 2018-195 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer failed to reject the books of account before estimating profits and that the additions were made beyond the scope of limited scrutiny. Subsequent events, like the SARFAESI Act action, corroborated the assessee's financial distress.

What were the facts?

The assessee, engaged in manufacturing and trading edible oils, filed a return declaring a loss. The Assessing Officer disallowed expenses under Section 40(a)(ia) and estimated Gross Profit at a higher rate than declared, leading to additions. The CIT(A) confirmed these additions.

What were the issues?

Whether the Assessing Officer could estimate profits without rejecting books of account, and whether additions made were beyond the scope of limited scrutiny.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 145(3),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri R. D. Lalchandani, Ld. AR
For Respondent: Shri Sanjay Kumar, Ld. CIT(DR)
Hearing: 03/08/2026Pronounced: 09/09/2026

Per, Shri Sonjoy Sarma, JM:

Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2018-19, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 23.04.2026, which in turn arises out of an order passed by assessing officer u/s. 143(3) of the Act, dated 16.05.2021. Sh. Rajmoti Industries

02.

Brief facts of the case are that the

The order continues below.

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