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Income Tax Officer Vs. Mahesh Kumar Aggarwal

Case No: ITA No.6242/Del/2025
Court: Income Tax Appellate Tribunal, Delhi Bench ‘A’, New Delhi
Bench: Delhi Bench ‘A’, New Delhi
Date: 2/6/2026

Parties Involved

appellantIncome Tax Officer
respondentMahesh Kumar Aggarwal

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,

Decision in favour of

Assessee

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.

Precedents Relied Upon

12 precedents cited in this judgement.

Judgment Outcome

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