MUNAWWAR SHAKUR KHAN,THANE vs. CENTRAL CIRCLE 8(4), MUMBAI, MUMBAI

आयकर अपीऱीय अधिकरण, म ुंबई पीठें, म ुंबई INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI BENCH: C BEFORE S HRI SANJAY GARG, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER ITA No.2886/MUM/2026 निर्धारणवर्ा/Assessment Year: 2022-23)

Munawwar Shakur Khan, The DCIT Bhiwandi Thane, Thane. Central Circle-8(4), Vs. Mumbai अपीलधर्थीAppellant प्रत्यथी Respondent

Permanent Account Number of BCKPK 5493 C Assessee:

अपीलधर्थीद्वारा/Appellant represented by: Shri S.R. Lodhe, Advocate प्रत्यथीद्वारा/Respondent represented by: Shri Ajay Soneji, Sr.DR सुनवाईकीतारीख/Date of conclusion of hearing: 09.09.2026 घोषणाकीतारीख/Date of pronouncement: 11.09.2026 आदेश / ORDER Per Sanjay Garg, Judicial Member:

The present appeal filed by the assessee is against the order of the Learned Commissioner of Income Tax (Appeals) [herein referred to as “Ld.CIT(A)”] dated 14.01.2026 for the Assessment Year 2022-23.

ITA No.2886/Mum/2026 Munawwar Shakur Khan :: 2 :: 2. The assessee has taken up the following grounds of appeal:

1) On the facts and in the circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals) erred in upholding the assessment order dated 31st March 2024 assesseing total income at Rs. 1,94,02,590/-for AY 2022-23. 2) On the facts and circumstance of the case and in law, the learned Commissioner of Income Tax (Appeals) erred in passing the order bearing DIN & No: ITBA/ALP/S/250/2023-24/1063757631(1) under section 250 for AY 2022-2023 on 14st January 2026. 3) On the facts and circumstance of the case and in law, the learned Commissioner of Income Tax (Appeals) erred in confirming the addition of Rs.1,82,86,934 made on account of non-genuine purchases in the assessment order dated 31st March 2024 for AY 2022-23 4) On the facts & in the circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals) erred in confirming the additions made as per the Assessment Order dated 31st March 2024 for the A.Y. 2022-23 without giving sufficient & proper opportunity of being heard. 5) On the facts & in the circumstances of the case and in law, the Learned Commissioner of Income Tax (Appeals) erred in confirming the additions made as per the Assessment Order dated 31st March 2024 for the A.Y. 2022-23 without fully & properly appreciating facts of the case & the submissions of the Appellant. 6) The appellant craves leave to add alter revise amend OR delete any OR all of the Grounds of the appeal at any time.

in scrap. The Assessing Officer (in short, “the AO”) had shown that the assessee

during the year purchases of Rs.30,40,29,552/- and opening stock of

Rs.17,85,985/-. The assessee had shown sales of Rs.30,55,34,902/- with closing

stock of Rs.92,15,478/- and reported gross profit of Rs.22,28,170/- and net profit

of Rs.12,15,660/-. The AO noted that the assessee had failed to prove the

genuineness of the purchases as well as of sales. He further observed that the

ITA No.2886/Mum/2026 Munawwar Shakur Khan :: 3 :: assessee had shown net profit @0.40% on the aforesaid purchases. Since the assessee couldn‟t prove with reliable evidences the genuineness of purchase and sale transactions, the AO estimated commission income @3% on purchases and further 3% on sales, totaling Rs.1,82,86,934/- and added the same into the total income of the assessee under the head „income from other sources‟ with the stipulation that the said addition will be over and above of the income already offered by the assessee in the return of income. In appeal, the Ld.CIT(A) enhanced addition made by the AO by directing the AO to add entire purchases made by the assessee. He also upheld 3% commission income on sales. Being aggrieved by the said order of the Ld.CIT(A), the assessee is in appeal before the Tribunal.

ITA No.2886/Mum/2026 Munawwar Shakur Khan :: 4 :: he should have added a reasonable profit element on such transaction, which, in his view, the assessee might have suppressed. Taking in view the overall facts and circumstances of the case, in our view, a reasonable profit element is required to be added in this case. After considering the rival submissions and having gone through the record, in our view, the addition @ 1% of the purchases being the suppressed profit element, over and above that has been declared by the assessee will be justified and appropriate. Therefore, the addition is restricted to that extent and remaining part of the addition is ordered to be deleted. Moreover, it is the case of the AO that the assessee is doing business, then the addition made by the AO under the head „income from other sources‟ is not justified, the same is to be added as income under the head “business or profession”. It is made clear that the assessee will not be allowed any deduction in respect of the addition confirmed by this Tribunal.

Order pronounced in the open court on 11.09.2026.

Sd/- Sd/- (JAGADISH) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai Dated: 11.09.2026

ITA No.2886/Mum/2026 Munawwar Shakur Khan :: 5 :: Copy to: 1 MUNAWWAR SHAKUR KHAN, 201, 125 TANVEER MANZIL MANGAL BANGALPURA, BHIWANDI THANE, THANE-421302, MAHARASHTRA The DCIT, CENTRAL CIRCLE 8(4), ROOM NO. 658, 6 FLOOR AAYAKAR BHAVAN, MAHARISHI KARVE ROAD, MUMBAI- 2 400020, MAHARASHTRA 3 THE PCIT / CIT, Mumbai 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE TRUE COPY

ASSISTANT REGISTRAR / SR. PRIVATE SECRETARY I.T.A.T., MUMBAI