GARG SHIP BREAKING PRIVATE LIMITED,BHAVNAGAR vs. THE DY. CIT, CIRCLE-3(1)(1), AHMEDABAD

ITA 340/AHD/2026Status: DisposedITAT Ahmedabad25 September 2026AY 2022-234 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that while the assessee's non-cooperation warranted scrutiny, the AO's estimation of profit at 2% lacked a rational basis. Therefore, the matter was remanded to the AO for a detailed examination.

What were the facts?

The assessee, a scraper dealer, filed its return of income with low disclosed income relative to its liabilities. The Assessing Officer (AO) rejected the books of account and estimated income at 2% of turnover due to lack of proper response from the assessee. The CIT(A) dismissed the appeal for non-prosecution and on merits.

What were the issues?

Whether the estimation of income by the AO was arbitrary and lacked a rational basis, and whether the assessment order was passed in violation of procedural requirements.

Which sections of the Income-tax Act were involved?

Section 144B,Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH

Before: Shri Tapas Ram Misra & Shri R. Govindarajan

For Appellant: Shri Mohit Balani, C.A
For Respondent: Shri Arvind Kumar Namdeo, Sr. D.R

PER R. GOVINDARAJAN, ACCOUNTANT MEMBER:

The assessee has filed the appeal against the order dated 10-12-2025 passed by Commissioner of Income Tax (Appeals), National Faceless Appeal Centre NFAC, Delhi (in short, referred to as the CIT(A)) u/s. 250 of the Income Tax Act, 1961 (herein referred to as “the Act”) relating to Assessment Year 2022-23. 2. The assessee raised the following grounds of appeal:- “1. The Ld. CIT(A) has erred in law and on facts in passing the impugned order ex-parte and in confirming the assessment framed by the Assessing Officer. Under the facts, the impugned appellate order is cryptic, non-speaking and passed without independent application of mind.

I.T.A No. 3

The order continues below.

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