PRIYA ENTERPRISE,VAPI vs. ITO, WARD-7, VAPI

ITA 800/SRT/2025Status: HeardITAT Surat23 January 2026AY 2010-11Bench: DR. B.R.R. KUMAR, VICE-PRESIDENT MS SUCHITRA RAGHUNATH KAMBLE (Judicial Member)5 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that cash deposits, when duly reflected in the audited books of account and explained with reference to recorded transactions, cannot be added as unexplained. Similarly, additions based on the proportion of sundry creditors to total purchases, without rejecting the books of account or disproving the identity/genuineness of creditors, are unsustainable.

What were the facts?

The assessee's appeal was against the CIT(A)'s order which confirmed additions made by the Assessing Officer. The additions pertained to cash deposited in a bank account and sundry creditors appearing as a significant percentage of total purchases.

What were the issues?

Whether additions for cash deposits and sundry creditors are valid without rejection of books of account and specific evidence to disprove genuineness.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: DR. B.R.R. KUMAR, VICE-MS SUCHITRA RAGHUNATH KAMBLE

For Appellant: Shri Rajesh Upadhyay, AR
For Respondent: Ms Namita Patel, Sr. DR
Hearing: 19.01.2026Pronounced: 23.01.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as “Ld. CIT(A)”] dated 31.07.2024, under section 250 of the Income-tax Act, 1961 [in short “the Act”] for the Assessment Year 2016-17. Ground No.2:

2.

The Assessing Officer made addition of Rs.15,12,000/-, being cash deposited in HDFC Bank account as unexplained money for want of documentary evidence. The Ld. CIT(A) confirmed the addition observing that the assessee had not furnished supporting evidence during assessment as well as appellate proceedings.

The order continues below.

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