AMIT PATWA,CHEMBUR WEST MUMBAI V. INCOME TAX OFFICER 27(1)(1), MUMBAI, VASHI NAVI MUMBAI

ITA 4592/MUM/2025

AI Insights

The case involves Amit Patwa, the appellant, who challenged the order passed by the National Faceless Appeal Centre (NFAC) / CIT(A) for the assessment year 2017-18. The primary issue was the addition of Rs. 9,34,600 as unexplained money under section 69A of the Income Tax Act, 1961, due to cash deposits made during November and December 2016. The Assessing Officer (AO) initially added this amount as unexplained, citing insufficient justification of the source of the deposits. However, the appellant provided substantial documentation, including profit and loss accounts and bank statements, which led the Tribunal to accept the deposits as legitimate income sources.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 773417 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 18-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIKIT TIWARI
• Assessee Lawyers: VIMAL PUNMIYA
• Keywords: Business income

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER I.T.A. No. 4592/Mum/2025 Assessment Year: 2017-18 Amit Patwa Room No. 63, 2/6, Amir Baug No. 2, PL Lokhande Marg, Near hanuman Mandir, Chembur (W), Mumbai - 400089 PAN – CTOPP6227P Vs ITO, Ward - 27(1)(1) IT Office, Vasi Rly Stn, Bldg, Navi Mumbai, Mumbai – 400 703. (Appellant) (Respondent) Assessee by Shri Vimal Punmiya Revenue by Shri Anikit Tiwari, Sr. DR Date of Hearing 01.09.2025 Date of Pronouncement 22.09.2025 ORDER Per: SHRI. SANDEEP GOSAIN, J.M.: The present appeal has been filed by the assessee challenging the impugned orders dt. 21.05.2025 passed under section 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre (NFAC) / CIT(A) for the assessment year 2017-18. 2. The assessee has raised the effective ground, thereby challenging the addition made u/s 69A of the Act. 3. I have heard the counsels for both the parties, perused the material placed on record, judgments cited before us and also the orders passed by the revenue Printed from counselvise.com 2 ITA No. 4592/Mum/2025 Amit Patwa, Mumbai. authorities. From the records, I noticed that the assessee had made cash deposits of Rs. 31,26,700/- during the period 09.11.2016 to 30.12.2016. Thus AO made addition of Rs. 9,34,600/- as unexplained money u/s 69A of the Act. As per revenue, the assessee could not justified the source of cash deposit is bank withdrawals and cash in hand. However, after show cause notice, it was claimed by the assessee that the same was out of sales. Since the revenue had found contradictory reply therefore addition u/s 69A of the Act was made as ‘unexplained money’. 4. However, the revenue authorities admitted that the total sales as per profit and loss account is only Rs. 19,42,135/- and therefore the cash deposit of Rs. 9,34,600/-, which was claimed to have been made out of sales and cash in hand accepted by the revenue to be genuine source of income. 5. Further, in order to substantiate the source of cash deposit, the assessee placed following documents on record: 1. Copy of Income Tax Acknowledgement; Computation of Income; Profit and Loss A/c, Balance sheet, and Form ITR 4. 2. Copy Of Confirmation for Loan Sanctioned and Repayment from Mumbai District Central Co- Op Bank Ltd 3. Copy of Gold Loan Statement- A/c No: 042180700000517 From Mumbai District Central Co-Op Bank Ltd Printed from counselvise.com "