SHRIKANT BRIJMOHAN SONI,AMRAVATI vs. INCOME TAX OFFICER WARD-5, AMRAVATI

ITA 423/NAG/2026Status: DisposedITAT Nagpur10 September 2026AY 2020-2111 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reassessment notice was invalid as it was based on 'borrowed satisfaction' and lacked independent application of mind by the AO. Furthermore, the disallowance of purchases was erroneous due to the lack of corroborative evidence and the denial of the assessee's right to cross-examine the third-party informant.

What were the facts?

The assessee challenged an addition for bogus purchases made from M/s. Om Sai Enterprises. The Assessing Officer (AO) initiated reassessment based on information from GST authorities regarding fraudulent ITC claims by the supplier. The assessee provided documentary evidence for the purchases, but the AO disallowed them without cross-examination.

What were the issues?

Whether the reassessment proceedings were validly initiated based on third-party information without independent application of mind and whether the disallowance of purchases was justified without providing an opportunity for cross-examination.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 148A,Section 151A,Section 44AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR SMC BENCH, NAGPUR

Before: SHRI MANISH BORADShrikant Brijmohan Soni,

For Appellant: Shri K.P. Dewani, Advocate
For Respondent: Shri Shiv Shankar Yadav, Sr.DR
Hearing: 04/08/2026Pronounced: 10/09/2026

This appeal by the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi (for short, “CIT(A)”) dated 02.02.2026 passed u/sec. 250 of the Income Tax Act, 1961 (for short, “Act”) which is arising out of assessment order dated 27.01.2025 passed u/sec. 147 r.w.s. 144 of the Act for the Assessment Year (A.Y.) 2020-21. 2. The grievance of the assessee revolves around the addition for bogus purchases of Rs. 22,00,464/- made from M/s. Om Sai Enterprises. The assessee has also challenged the validity of notice issued u/sec. 148 of the Act being illegal and bad in law as it has been initiated merely on the basis of information flagged on the Insight Portal and alleged input received from GST authorities, without any independent application

The order continues below.

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