C M & COMPANY,BIKANER vs. ACIT CIRCLE-1, BIKANER, BIKANER

ITA 96/JODH/2026Status: DisposedITAT Jodhpur27 August 2026AY 2015-1616 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO's estimation of income was based on an inappropriate comparison of profit rates and an unsupported profit rate. The CIT(A) confirmed the addition without addressing the inconsistency in the computation of comparative net profit rates.

What were the facts?

The assessee, a partnership firm dealing in vegetables and fruits on a commission basis, had its books of account rejected by the Assessing Officer due to alleged deficiencies in supporting vouchers, lack of proper particulars for cash payments, and absence of a formal stock register. The AO estimated the net profit by applying a 9% rate to own-account sales, leading to an addition.

What were the issues?

Whether the rejection of books of account and subsequent estimation of income by the Assessing Officer was justified based on the facts and circumstances of the case, particularly concerning the comparison of profit rates and the basis for estimation.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH JODHPUR

For Appellant: Shri Amit Kothari, CA (Physically)
For Respondent: Ms. Nidhi Nair, Addl. CIT-DR
Hearing: 04.08.2026Pronounced: 27.08.2026

PER: MAKARAND VASANT MAHADEOKAR, AM

This appeal by the assessee is directed against the order dated 21.11.2025 passed by the learned Commissioner of Income Tax (Appeals), Jaipur-5 [hereinafter referred to as “CIT(A)”] under section 250 of the Income-tax Act, 1961 [hereinafter referred to as 2 C M & Company “the Act”], in appeal arising from the assessment order passed by the Assistant Commissioner of Income Tax, Circle-1, Bikaner [hereinafter referred to as “Assessing Officer”] under section 143(3) of the Act for Assessment Year 2015-16. 2. The assessee has raised the following grounds of appeal:

1.

That appeal order passed u/s 250 of the Income Tax Ac

The order continues below.

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