HUSSNAIN INTERNATIONAL INDIA,MORADABAD vs. ITO WARD - 2(1), MORADABAD, MORADABAD

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ITA 6421/DEL/2026Status: DisposedITAT Delhi17 August 2026AY 2015-163 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the Assessing Officer's assessment order for AY 2016-17 accepted a profit rate of 2.63% on turnover. Therefore, it was deemed appropriate to apply the same profit rate of 2.63% to the current case instead of the 8% addition.

What were the facts?

The assessee's appeal for AY 2015-16 concerned an addition of Rs. 23,86,573/- made by the Assessing Officer, which was 8% of the total turnover, treated as unexplained investment. The assessee argued that a lower profit rate was accepted in a subsequent assessment year.

What were the issues?

The primary issue was the correctness of the addition made by the lower authorities at 8% of the total turnover as unexplained investment. The assessee sought to rely on a lower profit rate accepted in a subsequent assessment year.

Which sections of the Income-tax Act were involved?

Section 68,Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI

Before: SHRI SATBEER SINGH GODARA

Hearing: 03.08.2026Pronounced: 03.08.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “SMC” NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No.6421/Del/2026 Assessment Year: 2015-16 Hussnain International Vs. Income Tax Officer Ward- India, 2(1), Moja Basantpur, Ramrai, Moradabad, Uttar Pradesh- Near Deer Park, Rampur 244 001 Road, Moradabad- 244 001 Uttar Pradesh PAN: AABFH8751L (Appellant) (Respondent) Assessee by Sh. Pranav Yadav, Adv. Department by Sh. Manoj Kumar, Sr. DR

Date of hearing 03.08.2026 Date of pronouncement 03.08.2026 ORDER This assessee’s appeal for assessment year 2015-16, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1083999182(1), dated 23.12.2025 involving proceedings under section 147 r.w.s 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties. Case file perused.

ITA No.6421/Del/2026 Hussnain International India

2.

Learned counsel representing assessee presses for its fourth substantive ground reading as under: “On the facts and circumstantces of the case and in law, the CIT(A) erred in confirming the addition made by the assessing officer of Rs. 23,86,573/- i.e., at the rate 8 percent of total turnover of Rs. 2,98,32,158/- as alleged unexplained investment u/s 68 of the Act.”

3.

Suffice to say, it has come on record that sole issue sought to be canvassed hereby is that of correctness of learned lower authorities assessing the assessee’s turnover @ 8% in assessment as upheld in the lower appellate discussion. It is in this factual backdrop that Mr. Yadav has filed a copy of the learned Assessing Officer’s assessment order itself dated 21.03.2022 for A.Y. 2016- 17 assessing average NP @ 2.63% only in its hands which has gone unrebutted from the Revenue side. It is thus deemed appropriate that a lumpsump addition @ 2.63% in the assessee’s case than that in issue @ 8% would be just and proper with a rider that the same shall not be treated as a precedent. Necessary computation shall follow as per law.

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ITA No.6421/Del/2026 Hussnain International India

6.

This assessee’s appeal is partly allowed. Order pronounced in the open court on 03.08.2026.

Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated:17.08.2026 Pooja Mittal/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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