No Book Rejection, No Adhoc Profit: ITAT Mumbai Deletes 1% Closing Stock Addition

Kireet Kedarnath Rai Vs DCIT (ITAT Mumbai) Mumbai ITAT  condoned a delay of 319 days in filing the appeal and proceeded to decide the matter on merits. On merits, the Tribunal dealt with an adhoc addition of 1% of closing stock/work-in-progress (₹5,67,458) made by the AO and sustained by CIT(A) in the case of a civil contractor executing works for PWD, CPWD & AAI. The ITAT noted that the assessee had furnished complete job-wise details, running bills, and bank statements during assessment proceedings, and that the books of account were never rejected. Holding that estimation of closing ...