Adhoc addition post rejection of books of accounts unwarranted: ITAT Delhi

ITO Vs Neeraj Kumar (ITAT Delhi)

ITAT Delhi held that once the books of accounts are rejected, it doesn’t warrant any adhoc addition. Thus, CIT(A) rightly restricted GP @ 1% instead of 1.5% as estimated by AO. Appeal dismissed, accordingly.

Facts- In this case the assessment order u/s. 144 of the Act was passed on 28.03.2016. AO had rejected the books of accounts and thereafter, made various additions. CIT(A) held that since books have been rejected, hence, estimating the 1% GP instead of 1.5% estimated by the AO would serve the end of justice. He held tha

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