What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and restored the matter to the AO for verification. The AO is to determine if the addition confirmed by the CIT(A) was out of GST collected and deposited by the assessee.

The assessee's appeal concerned whether certain credit entries of Rs. 2,96,26,289 were part of sales turnover or GST collected and deposited. The assessee relied on GST returns for verification.

What were the issues?

The key issue was to determine if credit entries represented sales turnover or GST collected and deposited by the assessee.

Rajkumar Laxmichand Gambhani… vs ITO | s.250 | ITAT Ahmedabad 2026

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI R. GOVINDARAJAN

For Appellant: Shri S N Divatia, AR, Ms. Madhulika Satpute, Sr. D.R

For Respondent: Ms. Madhulika Satpute, Sr. D.R

Hearing: 03/08/2026

Per Sanjay Garg, Judicial Member:

The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to as “NFAC”), Delhi

ITA No.1294/Ahd/2026 [Rajkumar Laxmichand Gambhani vs. ITO] A.Y. 2020-21 - 2 –

(hereinafter referred to as “CIT(A)”), dated 19.02.2026 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2020-21.

Short issue involved in this appeal is as to whether the credit entries to the extent of Rs.2,96,26,289/-, as noted by the Ld. CIT(A) in concluding para of his order, were part of the sales turnover of the assessee or the same were out of GST collected by the assessee from customers, which was further deposited by the assessee to the GST Department.

The Ld. Counsel for the assessee in this respect has relied upon the GST return and stated that the issue can be verified at the end of the Assessing Officer (in short ‘the AO’).

In view of the above submissions, the impugned order of the Ld. CIT(A) qua the controversy in question is, hereby, set aside and the matter is restored to the file of the AO for verification on the limited issue, as to the amount relating to which, the addition has been confirmed by the CIT(A) assessing 8% net profit of the same, was out of GST collection made by the assessee and further deposited with the GST Department. If the contention of the assesse is found correct, no addition will be made by the AO on

ITA No.1294/Ahd/2026 [Rajkumar Laxmichand Gambhani vs. ITO] A.Y. 2020-21 - 3 –

this issue. With the above observations, the appeal of the assessee is treated as allowed for statistical purpose.

In the result, the appeal of the assessee is treated as allowed for statistical purpose.

This Order is pronounced on 11/08/2026

Sd/- Sd/- (R. GOVINDARAJAN) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 11/08/2026 S. K. SINHA True Copy आदेश क� �ितिल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. 2. ��यथ� / The Respondent. संबंिधत आयकर आयु� / Concerned CIT 3. 4. आयकर आयु�(अपील) / The CIT(A)- �वभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

RAJKUMAR LAXMICHAND GAMBHANI,NEAR KALUPUR DARWAJA, AHMEDABAD vs. INCOME TAX OFFICER-WARD-1(3)(1) AHMEDABAD, VEJALPUR, AHMEDABAD

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