BHARATKUMAR VITHALDAS PATEL L/H KALPUBEN BHARAT PATEL WIFE OF DECEASED BHARATKUMAR VITHALDAS PATEL,AHMEDABAD V. THE ITO, WARD-7(2)(1), AHMEDABAD

ITA 1498/AHD/2025

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The case involves an appeal by Bharatkumar Vithaldas Patel, represented by his wife, against the order of the Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal contested the additions made to the assessee's income for the Assessment Year 2015-16, which were based on unexplained investments in property and disallowance of deductions under Chapter VI-A of the Income-tax Act. The Tribunal examined the evidence presented, including bank statements and sale deeds, and found that the payments for the property were made through a loan account, thus explaining the source of funds. The Tribunal's decision partially overturned the CIT(A)'s earlier ruling, allowing the appeal in part.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790041 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 28-07-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUDHAKAR VERMA
• Assessee Lawyers: M. K. PATEL
• Keywords: Unexplained investment; Source of fund
• Section: 144; 69

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA R. KAMBLE, JUDICIAL MEMBER ITA No. 1498/Ahd/2025 (Assessment Year: 2015-16) Bharatkumar Vithaldas Patel, L/h. Kalpuben Bharat Patel, Wife of deceased Bharat Kumar Vithaldas Patel, 12, Pavansut Society, Nr. Gyanda Society, Jivrajpark, Ahmedabad-380051 [PAN : ADMPP 2015M] Vs. Income-Tax Officer, Ward-7(2)(1), Ahmedabad (Appellant) .. (Respondent) Appellant by : Shri M.K. Patel, AR Respondent by: Shri Sudhakar Verma, Sr DR Date of Hearing 08.10.2025 Date of Pronouncement 26.11.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay condoned. This appeal has been filed by the Assessee against the order dated 20.03.2025 passed by the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (‘Ld. CIT(A)’ in short), under Section 250 of the Income-tax Act, 1961 (‘the Act’ in short), for the Assessment Year 2015-16. 2. The assessee has raised following grounds of appeal:- “1. That on facts, and in law, the learned NFAC has grievously erred in not considering the submissions and evidences filed by appellant, and in confirming the addition of Rs. 8,92,500/- made towards unexplained payment for purchase of property u/s 69 of the Act. Printed from counselvise.com ITA No. 1498/Ahd/2025 Bharatkumar Vithaldas Patel Vs. ITO Asst. Year : 2015-16 - 2– 2. That on facts, and in law, the learned NFAC has grievously erred in confirming the disallowance of claim of deduction of Rs.1,65,000/- made under Chapter VI-A of the Act.” 3. In the present case, the original assessee, being a salaried bank employee since deceased, now represented by his wife as legal heir, had not filed a return of income for the relevant assessment year. Based on high-value transactions flagged under the Non-Filer Monitoring System (NMS), including purchase of immovable property, credit card payments, and salary disbursements, proceedings were initiated under section 148A of the Act. Subsequently, the assessment was completed under section 144 r.w.s. 147, determining total income of Rs. 22,15,203/- and making additions under section 69 of the Act. In appeal, the Ld. CIT(A) sustained the addition of Rs. 8,92,500/- towards unexplained investment in property and further disallowed the claim of Rs. 1,65,000/- made under Chapter VI-A. 4. During the course of appellate proceedings before us, the assessee submitted evidence in the form of bank statements showing that the sum of Rs. 8,92,500/- was paid by account payee cheques drawn from a SBI OD Personal Loan Staff account. These documents were also filed during appellate proceedings before the Ld. CIT(A). The payment details are corroborated by the sale deed and the property purchase schedule. 5. We have heard the rival contentions and perused the material available on record. In respect of the addition of Rs. 8,92,500/-, we find that the payments of Rs. 5,00,000/- and Rs. 3,92,500/- were made through account payee cheques from the assessee’s SBI OD loan account, and the bank statement placed on record substantiates the same. The payments match with the schedule in the registered sale deed. We are, therefore, satisfied that the source of funds is satisfactorily explained. Accordingly, the addition made under section 69 of the Act is directed to be deleted. Printed from counselvise.com ITA No. 1498/Ahd/2025 Bharatkumar Vithaldas Patel Vs. ITO Asst. Year : 2015-16 - 3– 6. With regard to the disallowance of deduction of Rs. 1,65,000/- under Chapter VI-A, since the amount has been paid towards the tuition fee of the children, the same is to be allowed subjected to the ceiling prescribed. 7. In the result, the appeal of the assessee is partly allowed. The order is pronounced in the open Court on 26.11.2025. Sd/- Sd/- (SUCHITRA R. KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 26.11.2025 **btk आदेश की \u0007ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, , , , अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation … Words processed by Hon’ble VP on his PC on 14.11.2025 2. Date on which the typed draft is placed before the Dictating Member …...25.11.2025 3. Other Member …...25.11.2025 4. Date on which the approved draft comes to the Sr.P.S./P.S …..25..11.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement …..26.11..2025 6. Date on which the fair order comes back to the Sr.P.S./P.S …...26.11.2025 7. Date on which the file goes to the Bench Clerk …...26.11.2025 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 "