ITAT Upholds Rejection of Books, Confirms ₹40.45 Lakh Addition at 20.97% GP

Sarandhar Umashankar Gupta Vs ACIT (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT) Ahmedabad upheld the Assessing Officer’s (AO) estimation of gross profit at 20.97% for a road contractor, Sarandhar Umashankar Gupta, for the Assessment Year 2017-18. This decision followed the rejection of the assesses books of accounts under Section 145A of the Income Tax Act due to numerous unverifiable cash transactions. The AO’s scrutiny revealed significant discrepancies, including substantial cash payments for contract expenses (Rs. 1.96 crore to 206 individuals), raw materials, and ...