MADHUBEN KANTILAL PATEL,SURAT vs. ITO, WARD-2(2)(1), SURAT

ITA 586/SRT/2026Status: DisposedITAT Surat05 August 2026AY 2019-204 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee's income was trade discount received as a resale agent, which was explained. The addition made by the AO and confirmed by the CIT(A) was not justified as the assessee had provided evidence of its income source.

What were the facts?

The assessee, a resale agent for Sumul Dairy, deposited a large sum in a joint bank account. The Assessing Officer (AO) re-opened the assessment and made an addition treating a portion of the discount received as unexplained money, as the assessee had not filed a return. The CIT(A) partly allowed the appeal.

What were the issues?

Whether the discount received by a resale agent from a dairy for sale of milk products can be treated as unexplained money under Section 69A. Whether the re-opening of assessment and subsequent additions were justified.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 69A,Section 144B,Section 143(2),Section 271AAC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Shri P.M. Jagasheth, CA
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 16.06.2026Pronounced: 05.08.2026

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 09.03.2026 for the Assessment Year (in short “AY”) 2019-20. 2. The assessee has raised the following grounds of appeal:

“1. On the facts and in the circumstances of the case as well as law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in re-opening the assessment u/s. 147 of the Act and issuing notice u/s. 148 of the Income Tax Act, 1961. 2. On the facts and in the circumsta

The order continues below.

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