AADI PROCON PRIVATE LIMITED,NAVRANPURA vs. INCOME TAX OFFICE WARD 1(1)(1), AHMEDABAD, AMBAWADI

ITA 1403/AHD/2025Status: DisposedITAT Ahmedabad24 September 2026AY 2016-1713 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that while the rejection of books and the need for estimation were justified due to discrepancies, the AO's method of estimating the sale consideration was not adequately supported. The matter was restored to the AO for fresh adjudication.

What were the facts?

The assessee, a real estate developer, disclosed sales for commercial units. The Assessing Officer (AO) found significant variations in the per square foot selling rates for units on the same floor and discrepancies in financial statements. The AO rejected the assessee's books and estimated suppressed sales.

What were the issues?

Whether the Assessing Officer was justified in rejecting the assessee's books of accounts and estimating suppressed sales based on the sale rates disclosed. Whether the method of estimation adopted by the AO was reasonable and supported by evidence.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 145

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Sulabh Padshah, AR
For Respondent: Shri Hrishikesh Hemant Patki, SR-DR
Hearing: 28.07.2026Pronounced: 24.09.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the Assessee against the order of National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”] dated 08.05.2025 for the Assessment Year (A.Y.) 2016-17 in the proceeding u/s 143(3) of the Income Tax Act [hereinafter referred as “The Act”].

2.

The brief facts of the case are that the assessee had filed its return of income for A.Y. 2016-17 on 11.10.2016 declaring total income of Rs. 12,52,520/-. The case was selected for limited scrutiny under CASS to Aadi Procon Private Limited Vs ITO, AY- 2016-17 2 examine the sales turnover and the income disclosed th

The order continues below.

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