MOOLCHAND BHABUTMALJI SONI,SURAT vs. ITO, WARD 1, BARDOLI

ITA 605/SRT/2026Status: DisposedITAT Surat09 September 2026AY 2023-245 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer and CIT(A) overlooked the assessee's submissions and the fact that neither party's GST returns or books of accounts reflected the alleged transactions. Therefore, the addition made by the AO and confirmed by the CIT(A) was not sustainable.

What were the facts?

The assessee's case was selected for scrutiny following a search on M/s. Tirth Gold, which revealed unaccounted purchases of Rs. 2.60 lacs made by the assessee. The assessee denied these transactions, claiming they were not reflected in their regular books or GST returns, nor in the searched entity's records.

What were the issues?

Whether additions for unaccounted purchases based solely on third-party digital data are valid without corroborative evidence, and if penalty proceedings are justified in such cases.

Which sections of the Income-tax Act were involved?

Section 69C,Section 115BBE,Section 271AAC,Section 274

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Shri PM Jagasheth, CA
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 22.06.2026Pronounced: 09.09.2026

PER : SUCHITRA KAMBLE, J M:

The appeal filed by the assessee is against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short “CIT(A)”] dated 26.02.2026 for the Assessment Year (in short “AY”) 2023-24. 2. The assessee has raised the following grounds of appeal:

“1. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of unaccounted purchases of Rs 2,60,176/- of MS Tirth Gold, on basis of AUG Software entries of Ms Tirth Gold, found during the co

The order continues below.

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