JASWINDER SINGH,BATHINDA vs. DCIT, CIRCLE-1, BATHINDA, BATHINDA

ITA 585/ASR/2025Status: DisposedITAT Amritsar23 July 2026AY 2016-1712 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that while rejection of books was not entirely justified due to the nature of the liquor business, the declared profit margins were volatile. Therefore, a net profit rate of 0.55% on net sales was deemed appropriate for equity.

What were the facts?

The assessee, a liquor retailer, had its books of accounts rejected by the AO and CIT(A) for reasons including lack of stock registers and vouchers. The AO estimated income at 1.50% and CIT(A) reduced it to 1.0% on turnover.

What were the issues?

Whether the rejection of books of accounts and estimation of income by the lower authorities was justified in the context of the liquor trade's operational realities and past profit margins.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH ‘DB’ : AMRITSAR

Before: SHRI S. RIFAUR RAHMAN & SHRI UDAYAN DAS GUPTA

For Appellant: Shri Sudhir Sehgal, Advocate
For Respondent: Shri Manek Shah Kapoor, Sr. DR
Hearing: 21.07.2026

PER S.RIFAUR RAHMAN, AM:

1.

These appeals filed by the assessee are against the order of the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT(A)”, for short] dated 03.06.2025 for the Assessment Years 2016-17 and 2018-19. 2. Since the issues are common and the appeals are connected, hence the same are heard together and being disposed off by this common order. We take up the assessee’s appeal being ITA No.585/Del/2025 for AY

2016-17 as lead case to adjudicate the issues under consideration.

1.

On the facts and circumstances of the case as well as in law, the Learned CIT (A)has erred by upholding the rejection of books of accounts maintain

The order continues below.

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