SHREENATH METALS,NA

ITA 543/SRT/2026Status: DisposedITAT Surat18 September 2026AY 2017-1812 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO's approach was inconsistent in treating unrecorded sales and cash sales differently. The Tribunal found the assessee's explanation for the cash deposit and VAT payment, supported by books of account, to be satisfactory.

What were the facts?

The assessee firm, engaged in metal trading, declared a low income. The Assessing Officer (AO) made additions for estimated gross profit on unrecorded sales, unexplained cash deposit, and unexplained VAT payment. The Commissioner (Appeals) upheld these additions.

What were the issues?

Whether the cash deposit and VAT payment were sufficiently explained by the assessee's books of account, and if Section 115BBE was applicable to the additions.

Which sections of the Income-tax Act were involved?

Section 68,Section 69C,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI B.M. BIYANI

For Appellant: Ms. Chaitali Shah, CA
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 24.06.2026Pronounced: 18.09.2026

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first appeal dated 20.02.2026 passed by learned Commissioner of Income-Tax (Appeals)-Addl/JCIT(A), Panaji [“CIT(A)”], which in turn arises out of the assessment-order dated 28.12.2019 passed by learned ITO, Ward-5, Navsari [“AO”] u/s 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2017-18, the assessee has filed this appeal. Shreenath Metals

2.

The background facts leading to present appeal are such that the assessee-firm is engaged in the business of trading of scrap/metal. For AY 2017-18, the assessee filed

The order continues below.

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