DEEPANSHU SRIVASTAVA,GHAZIABAD vs. DCIT, CIRCLE 2(1)(1), GHAZIABAD

ITA 4063/DEL/2025Status: DisposedITAT Delhi20 March 2026AY 2017-1822 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted the assessee's reliance on audited financial statements and the High Court's judgment emphasizing their importance. It also considered the assessee's argument about low margins in a high turnover business, especially during the COVID year.

What were the facts?

The assessee claimed substantial purchases from suppliers who were non-filers or had low turnovers. The Assessing Officer (AO) rejected the assessee's books of accounts due to lack of supporting documents for purchases and non-maintenance of stock registers. The AO estimated the gross profit based on the average of the preceding two years.

What were the issues?

Whether the AO was justified in rejecting the books of accounts and estimating the gross profit based on an average rate without properly considering the audited financial statements and the nature of the assessee's business.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 142(1),Section 133(6),Section 145(3)

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Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, DELHI BENCH “G”: NEW DELHI

Before: Ms. MADHUMITA ROY & SHRI NAVEEN CHANDRA

For Appellant: Shri Sumit Lalchandani, Advocate |, Shri Sandeep Singhal, Advocate &, Shri Shivam Yadav, Advocate |
For Respondent: Shri Manish Gupta, Sr. DR |

PER Ms. MADHUMITA ROY, JM:

The instant appeals, filed by the assessee, are directed against the separate orders dated 03.04.2025 & 25.04.2025 passed by the Ld. CIT(A), arising out of the assessment orders dated 19.09.2019 & 23.12.2022 for AYs 2017-18 & 2021-22 respectively.

2.

Since both the matters relate to the same assessee, these are heard analogously and are being disposed of by a common order.

ITA No.4064/Del/2025 - AY 2021-22:

The order continues below.

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