Mohan Bhaguji Nanaware vs. Ward 1(1), Kalyan

Parties Involved

Facts Summary

The assessee, Mohan Bhaguji Nanaware, is engaged in wholesale trading of agricultural produce, specifically onions. The assessee purchases onions from farmers and sells them in the Agricultural Produce Market Committee (APMC). For the year under consideration, the assessee did not file the return of income within the prescribed time. The case was reopened based on information relating to cash transactions in the assessee's bank account. The assessee filed a return of income on 08/02/2024, declaring a total income of Rs.4,99,440/- and a turnover of Rs.4,74,26,200/-. During reassessment, the assessee furnished the return of income, tax audit report, balance sheet, profit and loss account, bank statements, and various ledger accounts. The Assessing Officer rejected the books of account and estimated the net profit at 8% of the turnover, determining the business income at Rs.37,94,096/- and making an addition of Rs.29,29,118/- under the head 'Profits and Gains of Business or Profession'. The assessee preferred an appeal before the Commissioner of Income Tax (Appeals), which was dismissed. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Rejection of books of account under section 145(3) of the Act
• 2. Estimation of profit at 8% of turnover

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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