SUPERWAYS ENTERPIRSES PRIVATE LIMITED LTD ,MUMBAI vs. DCIT CENTRAL CIRCLE 7(1), MUMBAI

ITA 3142/MUM/2025Status: DisposedITAT Mumbai27 February 2026AY 2015-1630 pages
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What did the Tribunal hold?

The Tribunal held that there was no reason to suspect the genuineness of the purchase and sales transactions and deleted the addition made by the AO. It also upheld the deletion of the addition of unexplained cash credit, finding that the loans were accounted for as intra-corporate deposits, largely repaid through banking channels, and the identity and creditworthiness of lenders were established.

What were the facts?

The assessee, a wholesale trader in steel, was investigated following a search operation. The Assessing Officer (AO) alleged that the assessee fabricated invoices for inflated sales and purchases to avail Letter of Credit (LC) facilities from banks, engaging in circular transactions without genuine business activity. The AO rejected the assessee's books and estimated income at 7% of sales turnover.

What were the issues?

Whether the AO was justified in rejecting the assessee's books of account and estimating income based on alleged bogus transactions, and whether the unsecured loans constituted unexplained cash credit.

Which sections of the Income-tax Act were involved?

Section 68,Section 145(3),Section 132,Section 131

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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI JAGADISH

For Appellant: Shri Siddharth Srivastava
For Respondent: Shri Arun Kanti Datta, CIT-DR
Pronounced: 21.01.2026

Heard together (2 matters)

ITA No. 3140/Mum/2025
ITA No. 3972/Mum/2025

Read from the judgment's own cause title. This page is filed under one of them.

PER BENCH:

These are bunch of thirteen appeals, seven by the assessee and six by the Department, arising out of a common or

The order continues below.

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