S K LOGISTICS,ASHRAM ROAD, AHMEDABAD vs. INCOME TAX OFFICER, WARD-1(1)(3), VEJALPUR, AHMEDABAD

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ITA 1790/AHD/2025Status: DisposedITAT Ahmedabad24 August 2026AY 2023-245 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition was based on a clerical mistake in party-wise purchase details, and the assessee had provided sufficient documentary evidence to rectify the error. The Assessing Officer and CIT(A) rejected these documents without independent verification.

What were the facts?

The assessee's return for AY 2023-2024 was selected for scrutiny. The Assessing Officer made an addition of Rs. 7,33,195/- on account of a difference in purchase amounts from Go-Apptive Pvt Ltd, which the assessee agreed to. The CIT(A) confirmed this addition.

What were the issues?

Whether the addition made on account of a difference in purchase amounts, based on a clerical error, is sustainable when the assessee provides supporting documents. Whether the lower authorities erred by not independently verifying the documents submitted by the assessee.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, B” BENCH, AHMEDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL "B” BENCH, AHMEDABAD DR. B.R.R. KUMAR VICE PRESIDENT SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.1790/AHD/2025 (Assessment Year: 2023-2024) S K Logistics 28, Basement, Netpune Tower, Nehru Bridge Ashram Road, Ahmedabad-380009, Gujarat [PAN:ABQFS9402D] …………. Appellant Vs Income Tax Officer, Ward-1(1)(3) Ahmedabad AayakarBhawan(Vejalpur), Nr. Sachin Tower, 100ft Road, Anandnagar-Prahladnagar Road Ahmedabad-380015, Gujarat …………. Respondent Appearance For the Appellant/Assessee : Shri Parin Shah, AR For the Respondent/Department : Shri Abhijit Sr. DR. Date Conclusion of hearing : 15.06.2026 Pronouncement of order : 24.08.2026

O R D E R Per Rahul Chaudhary, Judicial Member: 1. The present appeal has been preferred by the Assessee against the Order, dated 11/08/2025, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the 'CIT(A)'] whereby the Learned CIT(A) had dismissed the appeal against the Assessment Order, dated 05/03/2025, passed under Section 143(3) read with Section 144B of the Income Act, 1961 [hereinafter referred to as 'the Act'] for the Assessment Year 2023-2024.

2.

The Assessee has raised following grounds of appeal: 1. In facts & Circumstances of the case, Your Appellant, most respectfully submits that the Ld. CIT(A) has erred in law and on facts by confirming the addition of Rs.7,33,195/- being 4.25% on account of difference of

ITA No.1790/AHD/2025 Assessment Year2023-2024 Rs.1,72,51,638/- in purchase amount of Go-ApptivePvt Ltd. without considering documents submitted during the assessment proceeding

3.

We have heard both the sides and have perused the material on record.

4.

The relevant facts in brief are that the Assessee filed the return of income for the Assessment Year 2023-2024 on 26/10/2023 which was selected for scrutiny. The Assessing Officer completed the Assessment vide Assessment Order, dated 05/03/2025, passed under Section 143(3) read with Section 144 of the Act after making an addition of INR.7,33,195/- (computed at the rate of 4.23% of the alleged non- disclosed purchases of INR.1,72,51,638/- from Go-Apptive Pvt Ltd). The relevant observation of the Assessing Officer read as under:

“3.7.1 With regard to the issue mentioned in para 2.4.1 of the show cause notice regarding the difference in purchases of Rs.2,93,49,896/-, the Assessee has stated that this difference is arisen due to purchase return of Rs.1,21,41,257/- and mistakes occurred in purchase register of M/s GOAPPTIV Private Limited by Rs. 1,72,51,638/- The explanation of the Assessee is found correct. Further, the Assessee has stated that GP ratio is 4.25% with regard to transactions done with M/s GOAPPTIV Private Limited. In this regard, the Assessee has submitted the copy of agreement. The Assessee has stated that the GP ratio as calculated in show cause notice and audit report includes the commission amount earned by the Assessee which has nothing to do with the gross profit on sale and purchase transaction reported in trading account. The explanation of the Assessee is found correct. The Assessee himself agreed for addition @4.25%on the difference of Rs.1,72,51,638/-. It comes to Rs.7,33,195/-. As agreed by the Assessee, this amount is added to the gross profit. On this issue, penalty proceedings u/s 270A for underreporting of income in consequence of misreporting of income is initiated separately. 3.7.2 After considering the submissions of the Assessee on 21/02/2025 and oral explanation made during video conference, the contentions against the issues mentioned in para 2.4.2 and 2.4.3 are accepted and no variation is made on these issues." 5. Before the Learned CIT(A) it was contended on behalf of the Assessee that the Assessing Officer had made an addition merely on the basis of clerical mistake committed by the Assessee while furnishing party-wise details of purchases along with the Submission, dated 16/08/2024,

ITA No.1790/AHD/2025 Assessment Year2023-2024 during the assessment proceedings. It was submitted that the Assessee had incorrectly stated the aggregate purchases made from Go-Apptive Ltd as INR.16,53,63,839/- Instead INR.14,81,12,197/-The Assessee placed before the Assessing Officer following documents/details to establish that the actual purchases made by the Assessee from Go- Apptive Pvt. Pvt Ltd was INR.14,81,12,197/- (a) Audited Financial Statements [vide submission dated 19/09/2024], (b) Ledger Account of Go-Apptive Pvt. Ltd maintained by the Assessee [vide Submission, dated 21/02/2025] and (c) Confirmation of Accounts given by Go-Apptive Pvt. Ltd [vide submission, dated 21/02/2025]. The aforesaid submissions did not find any favour with the Learned CIT(A) and the addition of INR.7,33,195/-(computed at the rate of 4.23% of the alleged non- disclosed purchases of INR. 1,72,51,638/-) made by the Assessing Officer was confirmed by the Learned CIT(A).

6.

Being aggrieved the Assessee has carried the issue n appeal before this Tribunal.

7.

We note that it is admitted position that to establish that the actual purchases made by the Assessee from Go-Apptive Pvt. Ltd during the relevant previous year stood at INR. 14,81,12,197/-, the Assessee had placed before the Assessing Officer and Learned CIT(A) (a) Audited Financial Statements [vide submission dated 19/09/2024], (b) Ledger Account of Go-Apptive Pvt. Ltd maintained by the Assessee [vide Submission, dated 21/02/2025] and (c) Confirmation of Accounts given by Go-Apptive Pvt. Ltd [vide submission, dated 21/02/2025]. On the other hand the sole basis of which the Assessing Officer arrived at the conclusion that the Assessee had not reported the purchases of INR.1,72,51,638/- is the party-wise details of purchases furnished by the Assessee during the assessment proceedings. We find that even though the Assessee has placed a relevant documents and details to establish that the inadvertent mistake was committed by the Assessee while giving the party-wise details of purchases, the Assessing Officer and the Learned CIT(A) rejected the same without carrying out any 3

ITA No.1790/AHD/2025 Assessment Year2023-2024 Independent enquiry/verification or bringing on record any material to doubt the veracity of the documents furnished by the Assessee. The documents on record support the stand taken by the Assessee while there is nothing on record to support the conclusion drawn by the Assessing Officer and the Learned CIT(A). Therefore, we are of the view that the addition made by the Assessing Officer on account of difference in purchases made from Go-Apptive Pvt. Ltd. cannot be sustained. Accordingly, the addition of INR.7,33,195/- is deleted and the Ground No.1 raised by the Assessee is allowed.

8.

The appeal preferred by the Assessee is allowed.

Order pronounced on 24.08.2026

Sd/- Sd/- (Dr. B.R.R. Kumar) (Rahul Chaudhary) Vice President Judicial Member

िदनांकDated : 24.08.2026 अहमदाबाद Ahmedabad; HC.PS

ITA No.1790/AHD/2025 Assessment Year2023-2024 आदेशक��ितिलिपअ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent. 3. संबंिधतआयकरआयु�/ Concerned CIT 4. आयकरआयु�(अपील) / The CIT(A) 5. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण/ DR, ITAT, 6. गाड�फाईल /Guard file. आदेशानुसार/BY ORDER, उप/सहायकपंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, अहमदाबाद / ITAT, Ahmedabad

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