Krunal Hasmukhbhai Kiri vs. Assessment Unit, Income Tax Department

Parties Involved

Facts Summary

The assessee filed his return of income on 16.02.2022 declaring total income of Rs.11,42,510/-. The case was selected for complete scrutiny under CASS and notice u/s 143(2) was issued on 28.06.2022. The assessee replied on 18.11.2022 and submitted only part details. Thereafter, notices u/s 133(6) were issued to various parties to verify the genuineness of transactions and creditworthiness of suppliers. The designated Verification Unit (VU) was also requested to verify the transactions physically. The Assessing Officer (AO) rebutted the submission and found that the argument of the assessee was not tenable. AO rejected the books of account and estimated the profit of the assessee @ 8% of the turnover. The total income was determined at Rs.8,27,55,550/-. Aggrieved by the order of AO, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) dismissed the appeal for non-prosecution by the assessee. The assessee then filed the present appeal before the Income-Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) erred in passing an Ex-parte order and dismissing the appeal without appreciating the facts and circumstances of the case?
• 2. Whether the Commissioner of Income Tax (Appeals) erred in confirming the addition made of Rs.8,16,13,040/- estimating profit of the appellant @ 8% of turnover?
• 3. Whether the Commissioner of Income Tax (Appeals) erred in confirming the addition of Rs.8,16,13,040/- made rejecting audited books of account doubting the genuine purchases made?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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