CHOUDHARY CONSTRUCTIONS & EARTHMOVERS CO. vs. INCOME TAX OFFICER

Parties Involved

Facts Summary

The case involves an appeal by CHOUDHARY CONSTRUCTIONS AND EARTHMOVERS CO. against an order passed by the NFAC, Delhi, under section 250 of the Income Tax Act, 1961. The assessee was unable to submit details of entire quantum of purchases amounting to Rs.66,89,07,021/-. The AO estimated the gross profit at 8% and made an addition of Rs.07,24,322/-. The assessee challenged this addition before the CIT(A) but was unsuccessful. The assessee then approached the ITAT, arguing that the addition should be estimated at 3% instead of 8%. The ITAT considered the submissions and decided to estimate the addition at 3% instead of 8%.…

Legal Issues

• 1. Estimation of gross profit at 8% by AO
• 2. Rejection of books of account by AO

Judgment Outcome

Decided in favour of Partly Assessee.

Precedents Relied Upon

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