DCIT, MUZAFFARNAGAR vs. M/S. MITTAL CONSTRUCTION UNIT, MUZAFFARNAGAR

ITA 3752/DEL/2017Status: DisposedITAT Delhi21 April 2025AY 2013-14Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI S. RIFAUR RAHMAN (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the AO's rejection of books and estimation of income without proper reconciliation was not justified. It also found that once books are rejected, no further disallowance can be made on other grounds. The Tribunal modified the estimation of income and upheld the CIT(A)'s deletion of other additions.

What were the facts?

The Revenue appealed against the CIT(A)'s order, and the assessee filed cross-objections. The Assessing Officer (AO) had rejected the assessee's books of account and made several additions, including on account of gross profit, unexplained sundry creditors, and unsecured loans.

What were the issues?

Whether the AO was justified in rejecting the books of account and estimating income, and whether further disallowances could be made after book rejection. The genuineness and creditworthiness of unsecured loans also formed a key issue.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 68,Section 143(3)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘E’: NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRIS.RIFAUR RAHMAN

For Appellant: Shri Ankit Gupta, Advocate
For Respondent: Shri Dheeraj Kumar Jain, Sr. DR
Hearing: 23.01.2025

Heard together (2 matters)

CO No.91/Del/2023
ITA No.3752/DEL/2017

Read from the judgment's own cause title. This page is filed under one of them.

PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1.

The Revenue has filed appeal against the order of the Learned Commissioner of Income Tax (Appeals), Muzaffarnagar[“Ld. CIT(A)”, for short]dated 23.03.2017 for the Assessment Year 2013-14. The 2 CO No.91/Del/2023 assessee also filed cross objections against the order of ld. CIT (A) dated 23.03.2017 for AY 2013-14. 2. First we take up Revenue’s appeal being ITA No.3752/Del/2017 and the Revenue has taken the following three grounds :- “1. The CIT (A) has erred in law by directing the AO to take gross profit @12.5% on the

The order continues below.

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