TOFEEQ TAHERBHAI GINWALA,VADODARA vs. ITO, WARD 1, GODHRA, GODHRA

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD ] ] Before Shri Sanjay Garg, Judicial Member आयकर अपील सं /ITA No.777/Ahd/2026 िनधा�रण वष� /Assessment Year : 2022-23 Tofeeq Taherbhai Ginwala, ITO FF-101, Aman Residency, बनाम/ Ward-1, v/s. Wadi S.N. Road, Kamatipura, Godhra Vadodara, Gujarat-390017 �थायी लेखा सं./PAN: AOCPG5520M (अपीलाथ�/ Appellant) (�� यथ�/ Respondent) Assessee by : Shri Anuj Tiwari, AR Revenue by : Shri Amit Pratap Singh, Sr. DR सुनवाई की तारीख/Date of Hearing : 23/07/2026 घोषणा की तारीख /Date of Pronouncement: 29/07/2026 आदेश/O R D E R The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (in short “NFAC”), Delhi [hereinafter referred to as ‘Ld. CIT(A)’] dated 12/02/2026 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2022-23. 2. The assessee in this appeal is aggrieved by the action of the CIT(A) in confirming the action of the Assessing Officer (in short “the AO”) in rejecting the books of account of the assessee and thereby estimating the net profit @ 8% of the turn over resulting into the addition of Rs. 16,31,698/-.

ITA No.777/Ahd/2026 Tofeeq Taherbhai Ginwala vs. ITO Asst.Year 2022-23 2 details for proving the purchases and sales made by the assessee during the year under consideration which included stock register etc. The AO further noted that there was a low Gross Profit as compared to the earlier years and there was certain cash spending. He, therefore, rejected the books of account of the assessee and estimated the net profit @ 8%. 4. Being aggrieved by the said order of the AO, the assessee preferred appeal before CIT(A). During the appellate proceedings, the assessee furnished requisite details and evidences, whereupon, the Ld. CIT(A) called for Remand Report from the AO. In the Remand Report, the AO noted that there was not any discrepancy in the stock register and that the closing stock matched with the figures declared by the assessee. He, further, noted that the explanation was given by the assessee that in the earlier year, the assessee had declared his income u/s 44AD of the Act which is on ad-hoc basis and no accounts were maintained. The AO having accepted the aforesaid contention of the assessee, however, noted that the Gross Profit declared by the assessee in comparison to the profits declared by other traders in the market, were slightly less. He, therefore, reported that estimation of the net profit @ 8% was justified. 5. Unfortunately the Ld. CIT(A) without deliberating upon the observation made by the AO in the in the remand report, confirmed the additions so made by the AO in a mechanical manner.

ITA No.777/Ahd/2026 Tofeeq Taherbhai Ginwala vs. ITO Asst.Year 2022-23 3 6. Being aggrieved by the said order of the CIT(A), the assessee has come in appeal before this Tribunal.

Order pronounced in the Open Court on 29/07/2026. Sd/- (Sanjay Garg) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 29/07/2025 Tanmay, Sr. P.S. TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु� अपील ( ) / The CIT(A)-(NFAC) 5. िवभागीय �ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद /DR,ITAT, Ahmedabad. , , 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad