Income Tax Officer Vs. Mahesh Kumar Aggarwal

Parties Involved

Facts Summary

The assessee is an individual proprietor of two concerns namely M/s MK Overseas and M/s Shiv Trading Company, engaged in the business of wholesale and trading of scrap metal goods. The case was selected for Complete Scrutiny as the assessee had made substantial purchases from suppliers who are either non-filers or have filed non-business ITR or reflected substantially lower turnover in ITR. The Assessing Officer rejected the books of account of the assessee and assessed the income at Rs.4,23,73,112/- against the return of income of Rs.25,86,260/- at the net profit considering @ 8% of turnover. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. NFAC, which allowed the appeal and deleted the addition made by the AO.…

Legal Issues

• 1. Deletion of income assessed by AO at Rs.4,25,47,065/- on estimation basis at 8% of the turnover.
• 2. Failure of AO to conduct diligent inquiry before rejecting books of account and estimating income.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• ITA No.3988/Mum/2025

  Mumbai Bench benchAY 2021-22Dismissed

• Karnal Agricultural Steel Industries vs. Assistant Commissioner of Income Tax

  Delhi Bench 'D' benchAY 2009-10Partly Allowed

• Subhkaran & Sons vs Deputy Commissioner of Income Tax, Central Circle- 7(1), Mumbai

• Sh. Vishal Fire Works Vs. Assessing Officer

• Babulal Mishrimalji Mehta vs Income Tax Officer

  SMC Bench, Mumbai benchAY 2019-20Partly Allowed

• Srikrishan Agarwal vs. DCIT, Circle-3(2), Gangtok