Manak Chand Agarwal vs. ITO, Ward 53(1), New Delhi

Parties Involved

Facts Summary

The assessee, Manak Chand Agarwal, filed an appeal against the order of the Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre, Delhi dated 03.08.2023, relating to the assessment year 2013-14. Agarwal filed an e-return of income on 27.09.2013, declaring a total income of Rs. 8,36,120/-. The case was selected for scrutiny under the Centralized Processing System (CASS), and a statutory notice under section 143(2) of the Act was issued on 10.09.2014. Agarwal is a wholesaler-cum-retailer of sugar, wheat flour, vegetable oils, and other items under the name M/s Agarwal Trading Company. The assessee has shown income from business and profession, house property, and other sources. The assessee has shown a turnover of Rs. 20,81,39,735/- and a gross profit of Rs. 33,90,130/-, giving a GP rate of 1.63%. The Assessing Officer (AO) observed that Agarwal was non-cooperative and that the assessee's books of accounts were not correctly maintained. The AO passed an exparte order under section 143(3)/144 read with section 145(3) of the Act, making various additions and assessing the income at Rs. 65,89,580/-. Agarwal appealed before the Commissioner of Income Tax (Appeal), who dismissed the appeal by sustaining the additions. Agarwal is in appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the provisions of law, the order passed by the Ld. CIT (Appeal) under section 250 of the act is bad both in the eyes of law and on facts.
• 2. Whether the Ld. CIT(A) has failed to appreciate that the assessment order passed u/s 143(3) r.w.s 144 is illegal bad in law and without jurisdiction.

Judgment Outcome

Decided in favour of Assessee.

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