BHAGYALAXMI PRINTS (PVT) LTD,SURAT vs. DCIT CIRCLE-1(1)(1), SURAT

ITA 1073/SRT/2025Status: DisposedITAT Surat10 August 2026AY 2019-204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the AO and CIT(A) ignored the documentary evidence submitted by the assessee, such as invoices, delivery challans, e-way bills, and bank statements. The Tribunal found that the addition made solely on the basis of an individual's statement was not sustainable.

What were the facts?

The assessee claimed purchases of coal from M/s. Chaniyara Agro Industries Private Limited. The Assessing Officer (AO) made an addition for bogus purchases based on the statement of an individual arrested for tax evasion, without fully considering the documentary evidence provided by the assessee. The CIT(A) upheld the addition.

What were the issues?

Whether the addition for bogus purchases is justified when the assessee has provided substantial documentary evidence, and whether an opportunity for cross-examination was required.

Which sections of the Income-tax Act were involved?

Section 37(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI BHAGIRATH MAL BIYANI

For Appellant: Shri Ramesh Goyal, CA
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 11.06.2026Pronounced: 10.08.2026

PER : SUCHITRA KAMBLE, J M:

The appeal filed by the assessee is against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short “CIT(A)”] dated 07.08.2025 for the Assessment Year (in short “AY”) 2019-20. 2. The assessee has raised the following grounds of appeal:

“1. The Ld. CIT(A) has erred on the facts of the case and in law in confirming the addition made by the AO of Rs.23,37,804/- on account of Bogus purchase of coal.

2.

The Ld. CIT(A) has erred on the facts of the case and in law in holding that opportunity of cross examination is not required in income tax act.”

3.

The assessee filed return of income for AY 2019-20 on 17.09.2

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 37(1)

All 6,995 judgments and leading authorities on Section 37(1) →

Recent GST High Court judgments

Search GST case law →