ACIT CENTRAL CIRCLE 7 (1) , MUMBAI vs. ELECMEC ENGINEERING & PROJECTS PRIVATE LIMITED, MUMBAI

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ITA 3057/MUM/2025Status: DisposedITAT Mumbai08 October 2025AY 2017-18Bench: SHRI SAKTIJIT DEY, HON'BLE (Vice President), SHRI NARENDRA KUMAR BILLAIYA, HON'BLE ACCOUNTANT MEMBER I.T.A. Nos.3055, 3057 & 3056/Mum/2025 Assessment Year: 2016-17, 2017-18 & 2018-19 Assistant Commissioner of Income Tax, Central Circle – 7(1) Vs Mumbai Elecmec Engineering & Projects Private Limited 208, Ashirwad Building Ahmedabad Street Carnac Bunder, Chinchbunder Mumbai - 400009 [PAN: AADCE9111C] अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent) C.O. Nos.194, 195 & 196/Mum/2025 Assessment 1 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, finding that the transactions were circular trading aimed at increasing turnover and availing bank credit, not for suppressing income. The Tribunal agreed that no further addition was warranted as the disclosed profits included commission income, and there was no evidence of cash transactions.

What were the facts?

A search operation revealed that the assessee company was involved in bogus purchase and sales transactions, misusing banking credit facilities. The Assessing Officer (AO) rejected the books of accounts and made additions based on estimated income from these transactions.

What were the issues?

Whether additions made by the AO on account of bogus purchase and sales transactions were justified, and if the profit disclosed by the assessee sufficiently accounted for any commission earned.

Which sections of the Income-tax Act were involved?

Section 153C

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “E” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE

For Appellant: Shri Vijay Mehta, A/R
Hearing: 30/09/2025Pronounced: 08/10/2025

आदेशानुसार/ BY ORDER TRUE COPY

1.

Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai , 3057 & 3056/Mum/2025 C.O. Nos. 194, 195 & 196/Mum/2025 11

Initial Date 1. Draft dictated on 30/09/2025 Sr.PS

2.

Draft placed before author 06/10/2025 Sr.PS 3. Draft proposed & placed JM/AM before the second member 4. Draft discussed/approved JM/AM by Second Member. 5. Approved Draft comes to /10/2025 Sr.PS/PS the Sr.PS/PS 6. File pronounced on /10/2025 Sr.PS 7. File sent to the Bench Clerk /10/2025 Sr.PS 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed Yes

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