SUSHIL GUPTA,MAINPURI vs. ITO WARD 4(2)4 , MAINPURI

ITA 136/AGR/2026Status: DisposedITAT Agra22 June 2026AY 2022-20239 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the AO's reliance on a case dealing with imported liquor was distinguishable. Considering the assessee's consistent low profit margins in country liquor trade and similar cases, the Tribunal found the estimated 3% profit to be excessive.

What were the facts?

The assessee, a liquor dealer, filed his return of income. The AO rejected the assessee's books of accounts under Section 145(3) due to lack of proper documentation for expenses and estimated income at 3% on stock. The CIT(A) sustained the addition.

What were the issues?

Whether the rejection of books of accounts and estimation of income at 3% was justified given the nature of the business and the assessee's past profit trends.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA BENCH “DB”, AGRA

Before: SHRI S. RIFAUR RAHMAN & SHRI SUNIL KUMAR SINGH

For Appellant: Ms. Prarthana Jalan, CA
For Respondent: Shri Harsh Siddharth Gautam, Sr. DR
Hearing: 23.04.2026

PER S. RIFAUR RAHMAN, AM :

1.

This appeal is filed by the assessee against the order of the Ld. Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)] dated 05.01.2026 for the Assessment Year 2022-23. 2. Brief facts of the case are, assessee filed his return of income for the AY 2022-23 on 02.10.2022 declaring total income at Rs.11,04,770/-. The case

2 was selected for complete scrutiny through CASS for the reasons that, "The assessee has disclosed low income from receipts (liquor) on which TCS has been deducted. There is a possibility that assessee has shown low income in order to reduce its profit/t

The order continues below.

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