MOHANLAL PREMRAJ SHAH,VAPI vs. INCOME TAX OFFICER WARD 5, VAPI

ITA 2/SRT/2026Status: DisposedITAT Surat10 September 2026AY 2020-2110 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that a Rojmel slip indicating a Rs. 2,00,000/- cash transaction with the assessee constituted tangible evidence. However, the AO's quantification of unaccounted purchases at Rs. 6,77,770/- lacked basis. The Tribunal treated Rs. 2,00,000/- as additional business turnover and sustained presumptive income thereon.

What were the facts?

The AO reopened the assessee's case based on information from a search and survey on a third party, alleging unaccounted cash purchases. The assessee, engaged in a small retail business and covered under Section 44AD, denied these allegations and provided account confirmations.

What were the issues?

Whether additions on account of alleged unaccounted purchases and estimated profit thereon are justified based on third-party documents, and if so, how should they be quantified and taxed.

Which sections of the Income-tax Act were involved?

Section 147,Section 44AD,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. Khushbu Bagrecha, CA
For Respondent: Shri Ashish Kumar, Sr.DR
Hearing: 18.06.2026Pronounced: 10.09.2026

Per B.M. Biyani, A.M.: Feeling aggrieved by order of first appeal dated 05.12.2025 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”], which in turn arises out of assessment-order dated 30.03.2025 passed by learned ITO, Ward-5, Vapi [“AO”] u/s 147 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2020-21, the assessee has filed this appeal.

Mohanlal Premraj Shah

2.

Precisely stated, the facts of the case are as under:

(i) The assessee-individual is engaged in trading business of fire crackers, etc. For AY 2020-21, the asse

The order continues below.

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