What did the Tribunal hold?

The Tribunal upheld the rejection of books of account but directed the AO to estimate net profit at 3% of the cost of goods put to sale, following a precedent. One appeal was dismissed as withdrawn.

The assessee, engaged in liquor trading, had his books of account rejected by the Assessing Officer (AO) due to non-furnishing of details and vouchers. The AO estimated profit at 5% of stock put to sale and made an addition for unexplained cash deposits. The CIT(A) granted relief on cash deposits but sustained the business income estimation.

What were the issues?

Whether the rejection of books of account and estimation of business income by the AO was justified, and if so, at what rate.

Karla Srinivasa Rao, Vijayawada vs ITO | ITAT Visakhapatnam 2022

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

Hearing: 16/03/2022Pronounced: 08/04/2022

आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:-

1. 1. ननधधाररती/ The Assessee– Karla Srinivasa Rao, D.No.40-12-72A, Flat No.406, HRT Elegance, Ramaswamy St., Patamata, Vijayawada. 2. रधजस्व/The Revenue – Income Tax Officer, Ward-2(4), Central Revenue Building, MG Road, Opp. PWD Grounds, Vijayawada.

3. The Principal Commissioner of Income Tax, Vijayawada. 4.आयकर आयुक्त ( अऩीऱ)/ The Commissioner of Income Tax (Appeals), Vijayawada. 5. ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ववशधखधऩटणम/ DR,ITAT, Visakhapatnam 6.गधर्ा फ़धईऱ / Guard file

आदेशधनुसधर / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam

KARLA SRINIVASA RAO,VIJAYAWADA vs. THE INCOME TAX OFFICER, WARD NO. 2(4), VIJAYAWADA

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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