ARVIND KUMAR SINGHAVI,SHAJAPUR vs. INCOME TAX OFFICER, WARD-1, UJJAIN, UJJAIN

ITA 310/IND/2025Status: DisposedITAT Indore03 June 2026AY 2017-1828 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that a mere fall in GP ratio, without specific defects in the books of account, cannot justify rejection of books and estimation of higher profits. Certain disallowances were also deleted.

What were the facts?

The assessee's income was initially assessed with additions for telephone and other expenses. Subsequently, the assessment was revised under Section 263, leading to a fresh assessment order with significant additions due to a fall in the Gross Profit (GP) ratio.

What were the issues?

Whether the rejection of books of account and estimation of higher GP is justified solely due to a fall in GP ratio, and the validity of other disallowances.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250,Section 263,Section 144,Section 145(3),Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

For Appellant: CA & Sh
For Respondent: Shri Ashish Porwal, Sr.DR
Hearing: 21.05.2026Pronounced: 03.06.2026

Per Paresh M Joshi, J.M.:

This is an Appeal filed by the Assessee under section 253 of the income tax Act 1961,[ herein after referred to as the Act

for the sake of brevity] before this tribunal, as & by way of a second appeal .The Assessee is aggrieved by the order

bearing No:-ITBA/NFAC/S/250/2024-25/1072319660(1)

dated 20.01.2025 passed by the Ld. CIT(A) u/s 250 of the Act, which is hereinafter referred to as the “Impugned

Order”. The Relevant Assessment year is 2017-18 and the ARVIND KUMAR SINGHAVI ITA No. 310/Ind/2025 - A.Y.2017-18

corresponding previous year period is from 01.04.2016 to 31.03.2017

2.

Factual Matrix

2.

1 That as and by way of an “Original Assessment order”

made u

The order continues below.

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