##PAGE1##

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD

BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT And

SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER

ITA No.848/AHD/2026 (Assessment Year: 2020-21)

SNZ Infra Projects Pvt Ltd., The Income Tax Officer, Common Sariyana Residency, Vs. Ward-1(1)(1),

AN No.3622/C, Ahmedabad.

Near IP Mission School, Raikhand Bhadra,

Ahmedabad-380001.

[PAN :AABpApCelSl6an1t95 G] Respondent

( ) .. ( )

Appellant represented by :

Respondent represented by:

Shri Chetan Agarwal, AR Shri Hrishikesh Patki, Sr.DR Date of Hearing

Date of Pronouncement

27.07.2026 O R D E R 11.08.2026

PER DR. B.R.R. KUMAR, VICE-PRESI DENT:-

This appeal has been filed by the Assessee against the order dated 04.02.2026 passed by the Ld. Commissioner of Income Tax (Appeals)/ National Faceless Appeal Centre, Delhi (hereinafter referred to as ‘Ld. CIT (A)’ in short), under Section 250 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’ in short) for

Assessment Year 2020-21.

ITA No.848/AHD/2026, AY-2020-21 SNZ Infra Projects Pvt Ltd - 2–

2 . The Assessee has raised the following grounds of Appeal:-

1. The Ld.CIT9A) has erred in law and well as on facts in upholding an addition of Rs.38,54,100/- being purchase from M/s. Shree Arihant Trading

Company treated as bogus u/s.69C of the Act.

3. The assessee-company filed its return of income for the Assessment Year (A.Y.) 2020-21 on 21.12.2020 under Section 139(1) of the Income-tax Act, 1961 (“the Act”), declaring a total income of Rs.35,170/-. Subsequently, the Jurisdictional Assessing Officer (JAO) received information through the Insight Portal, on the basis of which it was noticed that the assessee-company had allegedly availed fraudulent Input Tax Credit (ITC) in respect of purchases amounting to Rs.38,54,100/- from M/s. Shree Arihant Trading Company, Proprietor Shri Rahul Hirenbhai Zaveri (PAN: AARPZ4852C). On examination of the information available on record, it was noticed that the aforesaid concern was involved in transactions relating to ineligible/fraudulent ITC and that the assessee-company, M/s. SNZ Infra Projects Pvt. Ltd., was one of the recipients of such ITC. Accordingly, the genuineness of the purchases claimed to have been made by the assessee-company from M/s. Shree Arihant Trading Company was required to be examined. Thereafter, proceedings under Section 148A of the Act were initiated and a show-cause notice was issued to the assessee. However, despite being afforded sufficient opportunity in accordance with the principles of natural justice, the assessee failed to furnish any explanation or represent its case. Consequently, based on the material available on record, an order under Section 148A(d) of the Act was

ITA No.848/AHD/2026, AY-2020-21 SNZ Infra Projects Pvt Ltd - 3–

passed on 27.03.2024, holding that the case was required to be reopened for reassessment. During the reassessment proceedings, the assessee was required to explain the alleged bogus purchase transaction of Rs.38,54,100/- made from M/s. Shree Arihant Trading Company. However, the assessee failed to comply with the show-cause notice and did not furnish any evidence or explanation to establish the genuineness of the said purchases. In the absence of any satisfactory explanation or supporting documentary evidence, the purchase transaction amounting to Rs.38,54,100/- was treated as bogus and the corresponding expenditure was considered unexplained within the

meaning of Section 69C of the Act.

4. Aggrieved by the assessment order, the assessee preferred an appeal before the Ld. CIT(A). Since there was a delay of 56 days in filing the appeal, the assessee filed an application seeking condonation of delay. However, the Ld.CIT(A), not being satisfied with the explanation furnished by the assessee, declined to condone the delay and dismissed

the appeal.

5. Being aggrieved by the said order, the assessee has preferred the present appeal before the Tribunal.

6. The Ld. Counsel for the assessee submitte