TaxTMI 
TaxTMI 
2026 (6) TMI 1318
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....d his return of income for the AY 2022-23 on 02.10.2022 declaring total income at Rs. 11,04,770/-. The case was selected for complete scrutiny through CASS for the reasons that, "The assessee has disclosed low income from receipts (liquor) on which TCS has been deducted. There is a possibility that assessee has shown low income in order to reduce its profit/taxable income. Therefore, whether assessee has shown correct income in the ITR may be verified low income from TCS receipts- Liquor Business." The AO observed that the assessee has shown substantial expenses relating to entities not registered under GST and there is a possibility that assessee has booked bogus expenses in order to reduce its profit/taxable income. Therefore, AO observed....
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.... and made an addition of Rs. 1,41,60,168/-. 3. Aggrieved with the above order, assessee preferred an appeal before the ld. CIT (A) and filed detailed submissions. Ld. CIT (A) after going through the submissions of the assessee sustained the addition made by the AO. 4. Aggrieved with the above order, assessee is in appeal before us raising following grounds of appeal :- 1. That the National Faceless Appeal Centre (NFAC), Delhi has erred in law and on facts in sustaining the assessment order passed by the Learned Assessing Officer. 2. That the National Faceless Appeal Centre (NFAC), Delhi has erred in law and on facts in not considering the entire submissions/documents/ explanation filed before it. 3. That the....
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.... NP and in this regard, the additional evidences were produced before the ld. CIT (A). She submitted that books of accounts cannot be rejected u/s 145(3) merely because Gross Profit from a particular segment was lower and assesses was not in possession of proper documentary evidences in respect of expenses where the genuineness of expenses was not doubted and relied on the decision of Dreamax Infrastructure Developers vs. ITO (2018) 65 ITR (Trib.) 532 (Jaipur). 6. Ld. AR further submitted that both the AO as well as ld. CIT (A) made ad hoc addition of business income @ 3% relying on the decision of some other unrelated assessee of ITAT, Hyderabad Bench in the case of Sri Venkateswara Wings (supra) without discussing the facts involved th....
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....earlier years also, the same NP rate was accepted by the Revenue. 8. Further she also relied on the following decisions of coordinate Benches :- (i) KNP Associates vs. ITO in ITA No.525/Agr/2025 order dated 09.04.2025; (ii) Hardayal Milk Products Private Limited vs. ITO in ITA No.342/Agr/2025 order dated 29.12.2025; (iii) KNP Associates vs. ITO in ITA No.547/Agr/2025 order dated 03.03.2026. 9. On the other hand, ld. DR of the Revenue relied on the orders of the lower authorities. 10. Considered the rival submissions and material placed on record. We observed that the assessee is a wholesale dealer of Country Liquor and the margin is controlled due to Government interference. We observed that the assessee ....
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....ase, no regular books of accounts are being maintained by the assessee firm. However, we observed that in case of assessee herein, the books of accounts are not only maintained but also audited by the Chartered Accountant and filed before the Department before filing of return of income. Further we observed that in that decision, it is clearly stated that uniform rate of profit cannot be adopted in the case of every assessee in similar business but the AO failed to consider the above decision in totality. Accordingly, we are of the considered view that the decision relied upon by the lower authorities is distinguishable to the facts of the present case. 14. Further, we observed that assessee has relied on various decisions of the coordin....