Books Cannot Be Rejected Without Specific Defects: ITAT Chandigarh

ITO Vs Balaji Processors (ITAT Chandigarh) The appeal concerns the assessment for AY 2016–17, where the Assessing Officer (AO) rejected the assessee’s books of account under Section 145(3) and estimated income by applying an 8% net profit rate, resulting in assessed business income of Rs. 12.81 crore instead of the returned income of Rs. 79.85 lakh. The Commissioner of Income Tax (Appeals) [CIT(A)] subsequently reversed the AO’s action. The revenue appealed against this reversal. The AO noted several deficiencies, including the alleged non-submission of sales and purchase accounts, absen...