ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, BAREILLY, BAREILLY vs. ADESH PANDEY, BAREILLY

ITA 208/LKW/2025Status: DisposedITAT Lucknow29 June 2026AY 2022-2310 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the AO had wrongly rejected the assessee's books of account as the assessee had provided substantial documentation. The Tribunal also agreed that the AO's estimation of gross profit at 8% was arbitrary and not based on comparable data or past records.

What were the facts?

The assessee, engaged in the wholesale liquor business, filed its return of income. The Assessing Officer (AO) rejected the assessee's books of account due to a lack of verifiable sales, purchases, and expense details, and estimated the gross profit at 8%. The Commissioner (Appeals) deleted this addition.

What were the issues?

Whether the rejection of books of account by the AO was justified, and whether the estimation of gross profit was arbitrary.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH “A”, LUCKNOW

Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI NIKHIL CHOUDHARY

For Appellant: Shri Shaurya Shashwat Shukla

PER SUDHANSHU SRIVASTAVA, J.M.:

This appeal has been preferred by the Revenue against the order dated 11.02.2025, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2022-23. 2.0 The brief facts of the case are that the assessee was engaged in the wholesale business of Alcoholic Liquor and had been granted Licence by the Excise Department of Uttar Pradesh Government for sale of Indian Made Foreign Liquor (IMFL) and Beer in the Districts of Sonbhadra, Bhadohi and Mirzapur of State of Uttar Pradesh. The assessee filed its return of income for the year under consideration on 02.11.2022, declaring a total income of Rs.6,27,70,400/-. The case of the assessee was ITA No.208/LKW/2025 selected for scrutiny under C

The order continues below.

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