SHRI SUMERMAL K SHETH,MUMBAI vs. INCOME TAX OFFICER, 19(3)(4), MUMBAI
Facts
The assessee, a metal trader, had purchases from certain parties deemed non-genuine by the Assessing Officer. The AO rejected the books of account and made an addition of 12.5% of these purchases. The CIT(A) upheld this addition.
Held
The Tribunal followed a coordinate bench's decision for the preceding year and reduced the profit element on non-genuine purchases from 12.5% to 5%. The rejection of books of account was not granted separate relief as the addition was restricted to profit element.
Key Issues
Whether the addition for non-genuine purchases should be restricted to the profit element and at what rate, and the validity of reassessment proceedings.
Sections Cited
Section 145(3), Section 147, Section 143(3), Section 148, Section 234A, Section 234B, Section 234C, Section 234D
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY & SHRI G. M. DOSS
PER G.M. DOSS, ACCOUNTANT MEMBER :
This appeal by the assessee is directed against the order dated 24.03.2026, passed by the learned Joint Commissioner of Income-tax (Appeals) for the assessment year 2011-12. The assessee has raised the following grounds of appeal: 1. “On the facts and circumstances of the case and in law the learned Joint Commissioner of Income tax (Appeals) erred in confirming addition to the extent
1 Shri Sumerlal K Sheth
of Rs.48,07,147/- calculated @ 12.50% of alleged non genuine purchases of Rs.3,84,57,1
The order continues below.
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