TABASSUM,BAREILLY vs. ASSTT. COMMISSIONER OF INCOME TAX-1, BAREILLY

ITA 722/LKW/2025Status: DisposedITAT Lucknow11 June 2026AY 2023-249 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while the rejection of books of account might be justified, the AO was not justified in ignoring comparative cases and past trading results when estimating profit. The matter was restored to the AO for a fresh decision after the assessee produces complete books.

What were the facts?

The assessee's books of account were rejected by the AO due to non-production, leading to an estimation of income at 6% of turnover. The CIT(A) upheld this decision, refusing to admit additional evidence. The assessee appealed this order.

What were the issues?

Whether the AO was justified in rejecting the books of account and estimating income without considering comparable cases. Whether the CIT(A) erred in not admitting additional evidence.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 145(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW ‘A’ BENCH, LUCKNOW

Hearing: 23.03.2026Pronounced: 11.06.2026

PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the assessee against the order of the ld. CIT(A), NFAC passed under section 250 of the Income Tax Act, 1961 dated 17.07.2025, wherein the ld. CIT(A) has dismissed the appeal of the assessee against the order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 for the A.Y. 2023-24 on 18.03.2025. The grounds of appeal are as under:- “1. Because on the facts and in the circumstances of the case the order of Ld. CIT(A) is bad in law as the rejected books of account of the Appellant on surmises and conjectures by invoking the provisions of section 145(3) of the Income Tax Act. The Ld. AO exercised his juri iction arbitrarily an

The order continues below.

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