ITAT Kolkata Deletes GP Addition, Rules AO Cannot Enhance Without Rejecting Books

Hitesh Trading Company Vs ITO (ITAT Kolkata)

The Income Tax Appellate Tribunal (ITAT) in Kolkata has ruled in favor of Hitesh Trading Company, allowing its appeal against an order that enhanced its Gross Profit (GP) rate. The ITAT’s decision effectively reverses the additions made by the Assessing Officer (AO) and upheld by the Commissioner of Income Tax (Appeals), or CIT(A). The central issue revolved around the validity of the AO’s arbitrary estimation of the assessee’s GP without providing a basis for comparison or rejecting the company’s books of account

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