JAYESHKUMAR ARJANBHAI LATHIYA,SURAT vs. ITO, WARD-3(2)(4), SURAT

ITA 988/SRT/2025Status: DisposedITAT Surat17 August 2026AY 2012-134 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that similar issues have been consistently decided by co-ordinate benches, upholding a 6% addition on purchases. The jurisdictional High Court has also affirmed this view. Therefore, the addition was restricted to 6% of the impugned purchases.

What were the facts?

The assessee, a diamond trader, had purchases of Rs. 49,20,419/- from an entity linked to a group involved in providing accommodation entries. The AO treated these purchases as bogus and made a 100% addition. The assessee claimed the purchases were genuine.

What were the issues?

Whether purchases made from an entity linked to a group providing accommodation entries are entirely bogus, and if not, what is the extent of the addition that can be made.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148

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: Shri P.M. Jagasheth, CA
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 17.06.2026Pronounced: 17.08.2026

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first appeal dated 22.07.2025 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“Ld. CIT(A)”], which in turn arises out of the assessment-order dated 26.12.2018 passed by learned ITO, Ward-3(2)(4), Surat [“Ld. AO”] u/s 143(3) r.w.s. 147 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2012-13, the assessee has filed this appeal on the grounds as mentioned in Form No. 36 (Appeal Memo). Jayeshkumar Arjanbhai Lathiya

2.

Brief facts are such that the assessee-individual is engaged in the business of trading of diamond. For

The order continues below.

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