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

ITA 4007/MUM/2025Status: DisposedITAT Mumbai27 February 2026AY 2018-1930 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the rejection of the assessee's books of account was improper. Consequently, the estimation of income at 0.5% of sales turnover by the lower appellate authority was also found to be unsustainable, as it relied on the rejected books.

What were the facts?

The assessee, a wholesale steel trader, was investigated following a search operation. The Assessing Officer (AO) found evidence of fabricated invoices and circular transactions within the group to avail Letter of Credit (LC) facilities from banks, indicating no actual business activity. The AO rejected the assessee's books of account and estimated income at 7% of sales turnover.

What were the issues?

Whether the assessee's books of account were rightly rejected by the AO due to alleged bogus transactions and inflated turnover. The propriety of estimating income based on rejected books of account.

Which sections of the Income-tax Act were involved?

Section 145,Section 68,Section 132,Section 131

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI JAGADISH

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

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

The order continues below.

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