INNOPAK INFRA CHEM LLP,VAPI,GUJARAT vs. THE INCOME TAX OFFICER WARD 1, VAPI, GUJARAT

ITA 145/SRT/2026Status: DisposedITAT Surat10 August 2026AY 2020-217 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that if purchases are accepted as genuine, the Revenue must prove that sales did not occur or that sale proceeds represent other undisclosed income. Following a coordinate bench's decision, the Tribunal directed the Assessing Officer to make an addition at 0.5% of sales.

What were the facts?

The assessee's case was reopened based on incriminating material found during a search at a related group's premises, which indicated bogus purchase transactions and cash repayments. The Assessing Officer added Rs. 28,63,492/- as profit on suspected sales.

What were the issues?

Whether the addition on account of alleged bogus sales is justified when purchases are not disputed, and what is the appropriate profit element to be taxed in such cases.

Which sections of the Income-tax Act were involved?

Section 132,Section 147,Section 148,Section 151,Section 143(2),Section 142(1),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

For Appellant: Shri P M Jagasheth, CA
For Respondent: Shri Ajay Uke, Sr. DR
Hearing: 19/05/2026

Per, Dr. Arjun Lal Saini, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year 2020-21, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC) Delhi, dated 15.01.2026, which in turn arises out of an order passed by the Assessing Officer u/s 147 of the Act, on 30.03.2025. 2. The grounds of appeal raised by the assessee are as follows: “On the facts and in the circumstances of the case as well as

The order continues below.

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