CHETAK TILES PVT LTD,CHITTORGARH vs. ACIT CIRCLE-2, UDAIPUR

ITA 1134/JODH/2025Status: DisposedITAT Jodhpur19 August 2026AY 2020-215 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that only the profit element on unaccounted purchases can be added to income, not the entire purchase amount. The assessee had voluntarily offered income to the extent of profit on unaccounted purchases.

What were the facts?

The assessee's assessment was reopened based on information from a search operation on the Yashika Group, which revealed the assessee had unrecorded purchases from this group. The Assessing Officer made an addition of Rs. 11,46,487/- on account of these unrecorded purchases.

What were the issues?

Whether the entire amount of unrecorded purchases can be added to income, or only the profit element thereof. Whether adverse materials were properly confronted to the assessee.

Which sections of the Income-tax Act were involved?

Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Appellant: Shri Biren Shah, C.A. (Virtually)
For Respondent: Ms. Shivani Bansal CIT-DR

PER: SHRI SAKTIJIT DEY; V.P. :

Captioned appeal by the assessee arises out of order dated 27-10-2025 passed by National Faceless Appeal Centre (NFAC), Delhi for the Assessment year 2020-21. 2. The short issue arising in the appeal relates to addition of an amount of Rs.11,46,487/-. Of course, the assessee has raised a ground challenging the validity of reopening of assessment under Section 147 of the Income Tax Act, 1961 (in short ‘the Act’). However, at the time of hearing, assessee did not 2 advance any argument in respect of the said ground. Hence, the ground is dismissed as not pressed.

3.

Insofar as merits of the addition is concerned, briefly the facts are, the assessee is a resident corporate entity. Bas

The order continues below.

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