SHREE VACHHRAJ EXPORTS,SURAT vs. ITO, WARD 3(2)(1), SURAT

ITA 395/SRT/2025Status: DisposedITAT Surat10 August 2026AY 2018-195 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that while the assessee provided sales invoices and bank details, the purchase transactions were not fully explained, particularly regarding GST returns. Therefore, the addition was restricted to 6% of the gross profit, aligning with the profit margins in the diamond industry.

What were the facts?

The assessee, Shree Vachhraj Exports, was subjected to reassessment proceedings for AY 2018-19 based on information suggesting transactions with bogus companies. The Assessing Officer added Rs. 81,11,908/- as unexplained cash credits under Section 68, which was confirmed by the CIT(A).

What were the issues?

Whether the addition of Rs. 81,11,908/- as unexplained cash credits under Section 68 was justified, and if the assessee had adequately explained its sales and purchase transactions.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Shri Suresh K. Kabra, CA
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 16.06.2026Pronounced: 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 06.03.2025 for the Assessment Year (in short “AY”) 2018-19. 2. The assessee has raised the following grounds of appeal:

“1. The Ld. CIT, NFAC has erred and was not just and proper on the facts of the case and in law in confirming the addition of 81,11,908/- u/s.68 of the Income-tax Act. Prayer:

3.

1 The addition made by Ld Assessing Officer and confirmed by the Ld. CIT(A)-NFAC may be kindly deleted.

3.

2 Personal hearing may be granted.

The order continues below.

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