LAKHPAT TRADING AND INDUSTRYS PVT. LTD.,JODHPUR vs. ACIT, CIRCLE-3, JODHPUR

ITA 600/JODH/2025Status: DisposedITAT Jodhpur26 February 2026AY 2017-18Bench: DR. MITHA LAL MEENA, HON’BLE (Accountant Member), SHRI SUDHIR PAREEK, HON’BLE (Judicial Member)32 pages
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What did the Tribunal hold?

The Tribunal held that the AO was not justified in rejecting the books of accounts and making additions without providing the assessee an opportunity to cross-examine third-party evidence. The Tribunal emphasized that the department must provide an opportunity to controvert evidence relied upon.

What were the facts?

The assessee, engaged in oilseed trading, challenged the rejection of its audited books of accounts and subsequent income estimation by the Assessing Officer (AO). The AO had rejected the books under Section 145(3) and made additions based on an estimated profit rate and treating certain sales as bogus.

What were the issues?

Whether the rejection of audited books of accounts and subsequent additions by the AO were valid without providing an opportunity for cross-examination of third-party evidence. Whether sales treated as bogus were sustainable without proper substantiation and opportunity to the assessee.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 68,Section 69C

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Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Appellant: Shri Rajendra Jain, Advocate and Smt, CA (Physical), Smt. Runi Pal, CIT-DR (Virtual)
Hearing: 29.01.2026

DR. MITHA LAL MEENA, A.M.: This appeal is filed by assessee against the order of National Faceless Appeal Centre, Delhi [hereinafter referred to as NFAC/ CIT(A)] dated 26.06.2025 with respect to Assessment Year 2017-18 challenging therein the rejection of its books of accounts u/s 145(3), estimation of income and reducing genuine sales.

2.

Grounds of appeal are as under:

1.

That on the facts and in the circumstances of the case, the order passed by the ld. AO is bad in law and bad in facts.

2 Asst. Year: 2017-18

2.

That on the facts and in the circumstances of the case, the Id AO grossly erred in making various observation in the assessment order is apparently arbitrarily and also contrary to the mate

The order continues below.

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