Kavita Sharma Vs ITO (ITAT Delhi)
The appeal was filed against the order dated 19.03.2018 passed by the Commissioner of Income Tax (Appeals), arising from the assessment order dated 16.12.2016 under Section 143(3) of the Income Tax Act, 1961 for Assessment Year 2014–15.
The assessee had filed a return of income declaring Rs. 9,14,500, which was processed and later selected for complete scrutiny under CASS due to low net profit in comparison to large gross receipts. Notices under Sections 143(2) and 142(1) were issued, and the authorized representative of the assessee participated in the proceedings by submitting explanations and written submissions.
Upon completion of assessment proceedings, the Assessing Officer made an addition of Rs. 5,13,21,792 by rejecting the books of accounts under Section 145(3) and estimating net profit at 28% on the declared turnover, as against the declared net profit of 0.12%.
The assessee challenged this order before the Commissioner of Income Tax (Appeals), who dismissed the appeal. Aggrieved by this, the assessee filed an appeal before the Tribunal raising several grounds. The primary contentions included lack of valid jurisdiction due to absence of proper transfer under Section 127, improper rejection of books of accounts, estimation of profit without basis, and violation of principles of natural justice due to lack of adequate opportunity of hearing.
