HANUMANPRASAD AMILAL SHARMA,BHAVNAGAR vs. DCIT, CIRCLE 1, BHAVNAGAR, BHAVNAGAR

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ITA 926/AHD/2026Status: DisposedITAT Chandigarh12 June 2026AY 2013-143 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the purchases were accounted for and reflected in the books of accounts. However, to minimize the rigor of reassessment, the assessee offered 10% over the profit on these purchases.

What were the facts?

Reassessment proceedings were initiated against the assessee for AY 2013-14 based on information that the assessee availed accommodation entries. The Assessing Officer treated purchases of Rs. 99,31,560/- as unaccounted and made an addition.

What were the issues?

The primary issues were the validity of reassessment proceedings and the addition of purchases treated as unaccounted income.

Which sections of the Income-tax Act were involved?

Section 147,Section 56

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE- & SHRI RAHUL CHAUDHARY

For Appellant: Shri Prakash D Shah, AR
For Respondent: Shri Abhijit, Sr. DR
Hearing: 10.06.2026Pronounced: 12.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT & SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.926/Ahd/2026 (Assessment Year: 2013-14) Hanumanprasad Amilal Sharma, The Deputy Commissioner Vs. 102 Raj Complex of Income Tax, Sanskarmandal, Circle-1, Bhavnagar-364001. Bhavnagar. Gujarat.

[PAN :ANKPS8853 J] (Appellant) .. (Respondent) Appellant by : Shri Prakash D Shah, AR Respondent by: Shri Abhijit, Sr. DR Date of Hearing 10.06.2026 Date of Pronouncement 12.06.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

This appeal is filed by the Assessee against the appellate order dated 15.01.2026 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2013-14.

2.

The assessee has raised the following grounds of appeal:

1.

That the Ld. CIT(A)/National Faceless Appeal Centre, Delhi has erred in law and facts by not quashing the assessment order passed under section 147 of the Income Tax Act, 1961 as the reassessment proceeding and its subsequent is bad in law and therefore the order passed by the learned Ld. AO is to be quashed and the learned AO is to be directed to accept the returned income.

ITA No. 926/Ahd/2026 Asst. Year : 2013-14 - 2– 2. That the Ld. CIT(A), National Faceless Appeal Centre, Delhi, has erred in law and facts by confirming the addition of Rs. 99,31,560/- as income from other sources under section 56 of the Act, though the purchase made by appellant is genuine and therefore, the Ld.AO is to be directed to delete the said while computing the total income.

3.

That your appellant craves a leave to add, alter or amend any grounds at or before the time of hearing 3. Brief Facts of the case are that assessee is an individual engaged in the business of trading in scrap in the name and style of Gujarat Ship Scrap Corporation. The return of income for AY 2013-14 was originally filed on 29.09.2013, declaring total income of 10,71,440/-. Reassessment proceedings were initiated under section 147 based on credible information that the assessee is a beneficiary who has availed accommodation entries from M/s Harsh Enterprise (Prop. Shri Divyang Shah) amounting to Rs. 99,31,560/-. The Assessing Officer completed the reassessment treating the entire purchases of Rs. 99,31,560/- as unaccounted, and made the addition.

4.

Heard the argument of both the parties and perused the material available on record.

5.

At the outset the Ld.AR submitted that sum of Rs.99,31,560/- represented accounted purchases duly reflected in the books of accounts, sold subsequently and earned profit . It was submitted that even such profit earned has also been considered in the regular books of accounts and hence no addition is called for. He also submitted that to minimize the rigour of reassessment to conclude the proceedings the assessee shall offer 10% over and above the regular profit on the purchases made from M/s Harsh Enterprise. In the specific facts and

ITA No. 926/Ahd/2026 Asst. Year : 2013-14 - 3– circumstances in the case and keeping in view the evidences of purchases and the reports relied upon by the revenue, we find that ends of justice will be made by directing the AO to add Rs.9,93,156/- to the returned income.

6.

In the result, the appeal of the assessee is partly allowed.

The order is pronounced in the open Court on 12.06.2026.

Sd/- Sd/- (RAHUL CHAUDHARY) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 12.06.2026 MV आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy

सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

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