MRS. PURNIMA SUNIL AGRAWAL,VALSAD vs. ITO, WARD 7, VAPI

ITA 1170/SRT/2025Status: DisposedITAT Surat27 July 2026AY 2013-145 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal followed a coordinate bench's decision in the assessee's own case for a prior AY, which estimated net profit at 2% of total turnover. Therefore, the same net profit rate was applied for the impugned AY.

What were the facts?

The assessee, engaged in waste paper trading, had her books of account rejected by the AO due to failure to substantiate purchases. The AO disallowed 15% of total purchases as non-genuine, which was confirmed by the CIT(A).

What were the issues?

Whether the disallowance of 15% of purchases was justified when the business involved dealing with illiterate vendors and a lower profit margin was established in earlier years.

Which sections of the Income-tax Act were involved?

Section 145(3),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH SMC, SURAT

Before: Shri T. R. Senthil Kumar & Shri Ratnesh Nandan Sahay

For Appellant: Shri A. Gopalakrishnan Aiyar
For Respondent: Shri Ajay Uke, Sr. DR
Hearing: 30/04/2026Pronounced: 27/07/2026

PER: RATNESH NANDAN SAHAY, AM:

1.

This is an appeal filed by the assessee against the order of the Ld. Addl/JCIT(A), Thiruvanantpuram [In short, ‘the ld. CIT(A)’] dated 29/09/2025 for the assessment year (AY) 2013-14 wherein the assessee has raised following grounds of appeal:

"

1.

On appreciation of the facts and circumstances of the case and law, the learned Commissioner of Income Tax (Appeals) has erred in confirming the action of the Learned AO making disallowance to the tune of Rs.37,27,890/-being 15% of total purchases of waste paper made during the year.

2

2.

On appreciation of the facts and circ

The order continues below.

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