Atop Food Producers Pvt. Ltd. vs. Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Atop Food Producers Pvt. Ltd., a private limited company engaged in the manufacturing and sale of potato chips and wafers, filed its return of income for the assessment year 2015-16 declaring a total loss. The return was initially processed under section 143(1) of the Income-tax Act, 1961, and later selected for scrutiny. The Assessing Officer rejected the books of account under section 145(3) of the Act and estimated the gross profit at 6.13%, resulting in an addition of Rs.62,42,881/-. The assessee appealed against this order to the Commissioner of Income Tax (Appeals), which was sustained. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Assessing Officer was justified in rejecting the books of account under section 145(3) of the Act.
• 2. Whether the disallowance of canteen expenses of Rs.20,83,073/- was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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