TaxTMI 
TaxTMI 
2026 (8) TMI 1346
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....r (AY) 2018-19. 2. The grounds of appeal raised by the assessee are as under: "1. THE ORDER IS BAD IN LAW, ILLEGAL AND WITHOUT JURISDICTION 1.1 In the facts and the circumstances of the case, and in law, the appellate order u/s. 250 of the Income tax Act, 1961 ['the Act'] framed and passed on 24.12.2025 by the Commissioner of Income tax (Appeals), National Faceless Appeal Centre, Delhi ['Ld. CIT (A)'] is bad in law, illegal and without jurisdiction, as the same is framed in breach of the statutory provisions of the Act and the scheme and as otherwise also is not in accordance with the law. 1.2 Without prejudice to the generality of the above, the appellate order so passed is bad in law, illegal ....
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....he circumstances of the case, and in law, such action of rejection of books of accounts is bad in law, illegal and without jurisdiction and that no such rejection was called for. WITHOUT PREJUDICE TO THE ABOVE: 4. ADDITION OF Rs. 12,43,39,852/- 4.1 It is submitted that, in the facts and circumstances of the case and in law, the CIT(A) erred in confirming the action of the A.O. in making addition of Rs. 2,04,25,809/-, being the amount of enhanced gross profit arrived at by applying the gross profit rate of the last year with the turnover of the current year 4.2 While doing so, the Ld. CIT(A) erred in - (i) Basing his action only on surmises, suspicion and conjecture, (ii) Taking into acco....
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....and revised returns. The AO also observed that the accounts were purportedly audited by different auditors and that the requisite audit report under the Companies Act, 2013 as well as Forms 3CA/3CD and other supporting records, were not properly furnished/uploaded. The assessee explained that the tax audit report was based on provisional accounts, resulting in variation in the figures. The AO issued a show-cause notice proposing rejection of the books on the ground that the accounts were not properly audited and the figures could not be verified. The assessee was also called upon to furnish, inter alia, GSTR-9/9C and AOC-4/MGT-7 and to substantiate the expenditure claimed. However, the assessee did not furnish any reply or the documents sou....
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....t the financial statements could not be considered reliable and that the AO was justified in rejecting the books of account. The CIT(A) further held that the estimation of profit by the AO at the preceding year's net profit rate of 2.31% was in order and upheld the addition of Rs. 12,43,39,852/-. Consequently, the appeal of the assessee was dismissed. 5. Aggrieved by the order of CIT(A), the assessee filed appeal before the Tribunal. The Ld. CIT DR submitted that the AO was not justified in rejecting the books of account and estimating the profit at 2.3128% of the turnover merely on the basis of the preceding year's net profit rate. It was submitted that the assessee had furnished the relevant financial statements, audit reports ....