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Facts
The assessee's appeal for AY 2017-18 challenged an assessment order completed under Section 144, where profit was estimated at 8% under Section 44AD due to the assessee's failure to produce books of account before the Assessing Officer (AO) and the CIT(A). The assessee also did not appear before the ITAT.
Held
The tribunal noted the assessee's consistent non-compliance and the incomplete adjudication regarding profit estimation. To ensure substantive justice, the case was remanded to the AO, providing the assessee a final opportunity to furnish books of account and other details for a fresh assessment.
Key Issues
The key legal issue was the validity of profit estimation under Section 44AD due to non-production of books of account and non-compliance by the assessee.
Sections Cited
Section 144, Section 44AD
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Income Tax Appellate Tribunal, RAIPUR BENCH “SMC”, RAIPUR
Before: SHRI PARTHA SARATHI CHAUDHURY
आदेश / ORDER
PER PARTHA SARATHI CHAUDHURY, JM
The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, dated 22.12.2025 for the assessment year 2017-18 as per the grounds of appeal on record.
2. That as evident from Para 3.2 of the order of the Ld. CIT(Appeals)/NFAC that in spite of several opportunities being provided to the assessee failed to produce books of account before the A.O and the assessment order was therefore completed u/s. 144 of the Income Tax Act, 1961 (for short ‘the Act’). That the A.O was correct in estimating the profit @ 8% u/s. 44AD of the Act.
That when the matter came up for hearing, none appeared for the assessee nor any adjournment petition has been filed. Considering the aforesaid para i.e. 3.2 of the Ld. CIT(Appeal)/NFAC’s order that the adjudication regarding the estimation of profit @ 8% remained substantively incomplete due to non-compliance by the assessee before the A.O and for non-furnishing of the books of account and therefore, it would be fit and proper in the interest of substantive justice to provide final opportunity to the assessee enabling him to furnish books of account and other details before the A.O and after careful consideration of these
3 Manish Khandelwal Vs. ITO, Ward-Jagdalpur (C.G.)
A.O shall pass necessary order as per law. Needless to mention, principles of natural justice always to be complied with. I order accordingly.
As per the above terms grounds of appeal of the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 10th day of February, 2026.