SAI MULTITRADE PRIVATE LIMITED,SURAT V. ITO, WARD-2(1) (2), SURAT

ITA 844/SRT/2025

AI Insights

The case involves Sai Multi Trade Private Limited, which appealed against the order of the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi. The primary issues in the appeal were the reopening of the assessment under Section 147 by issuing a notice under Section 148, the rejection of books of accounts under Section 145(3), and the addition of Rs. 2,75,66,158 as unexplained income. The Tribunal found that the assessee failed to provide sufficient evidence to substantiate the claims regarding the purchases made through a broker, which led to the initial rejection of their explanations. However, the Tribunal also noted discrepancies in the documentation provided by the Assessing Officer and granted a remand for a de novo assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831384 (ITAT-SURAT)
• Duration Of Justice: 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 11-08-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAMITA PATEL
• Assessee Lawyers: RASESH SHAH
• Section: 147; 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 844/SRT/2025 (Assessment Year: 2009-10) Sai Multi Trade Private Limited, C-1244, Raghukul Textile Market, Ring Road, Surat-395002 [PAN : AALCS 6867 R] Vs. Income Tax Officer, Ward-2(1)(2), Surat (Appellant) .. (Respondent) Appellant by : Shri Rasesh Shah, CA Respondent by: Ms. Namita Patel, Sr. DR Date of Hearing 20.01.2026 Date of Pronouncement 22.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the assessee against the order dated 20.06.2025 passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as the “Ld. CIT(A)”), under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year 2009-10. 2. The assessee has raised following grounds of appeal:- “1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of the Ld. Assessing Officer in re-opening assessment u/s. 147 by issuing notice u/s. 148 of the I.T. Act, 1961. 2. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of the Ld. Assessing Officer of rejecting the books of accounts u/s. 145(3) of the Income Tax Act, 1961. Printed from counselvise.com ITA No. 844/SRT/2025 Sai Multi Trade Pvt Ltd Vs. ITO Asst. Year : 2009-10 - 2– 3. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of Assessing Officer in making the addition of Rs. 2,75,66,158/- by treating the entire credits in the bank account of the assessee as unexplained income.” 3. Briefly stated, the Assessing Officer treated the total credits of Rs. 2,75,66,158/- appearing in the bank accounts of the assessee as unexplained income, which was confirmed by the Ld. CIT(A). 4. Before us, the Ld. AR submitted that the assessee is engaged in the business of export of Onions and other agricultural produce to various countries like Bangladesh and Dubai and that the foreign remittances received were against such exports. The Bench has specifically asked to furnish the details of the purchases made and the corresponding payments for purchase of agricultural produce from various parties. In response, the Ld. AR submitted that the purchases have been made through a broker namely Shri Asifbhai. The Bench further required the assessee to furnish the details of payments made to Shri Asifbhai, particularly with reference to withdrawals from the bank accounts. However, despite repeated opportunities granted, the assessee failed to furnish any evidence regarding the payments made for such purchases before the Bench. 5. The Ld. AR also challenged the validity of the reopening of the assessment. Upon perusal of the record, we find that before issuance of notice u/s 148 of the Act, the Revenue Authorities have given opportunity to the assessee to furnish/explain details such as names and addresses of the farmers from whom the assessee has purchased agricultural commodities. Even during the reopening proceedings, the assessee merely stated that purchases were made through one Shri Asifbhai; however, no office address or contact details of the said broker were furnished to substantiate the claim. Hence, the appeal of the assessee fails on the issue of reopening. Printed from counselvise.com ITA No. 844/SRT/2025 Sai Multi Trade Pvt Ltd Vs. ITO Asst. Year : 2009-10 - 3– 6. The Ld. DR has also submitted that the entries in the purchase ledger do not tally with the corresponding bank statements. Considering the totality of the facts and circumstances, in the interest of justice, one opportunity is being given to the assessee to produce all the details before AO who shall consider the documents and pass an order de novo. 7. In the result, the appeal of the assessee is hereby allowed for statistical purposes. This order is pronounced in the open Court on …22.01.2026 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Surat; Dated 22/01/2026 btk आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ ) अपील ( / The CIT(A)- 5. िवभागीय Ůितिनिध , अिधकरण अपीलीय आयकर , /DR,ITAT, Surat, 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Surat 1. Date of dictation …dictated in the open court on..…20.01.2026….….. 2. Date on which the typed draft is placed before the Dictating Member … …20.01.2026………… 3. Other Member……20.01.2026…………… 4. Date on which the approved draft comes to the Sr.P.S./P.S …. …20.01.2026…………. 5. Date on which the fair order is placed before the Dictating Member for pronouncement ......22..01.2026........ 6. Date on which the fair order comes back to the Sr.P.S./P.S …22.01.2026…..…………. 7. Date on which the file goes to the Bench Clerk …….….…. 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "