BHIKHABHAI MANGALBHAI PATEL,VADODARA V. THE ITO, WARD-4(1)(1), VADODARA

ITA 1743/AHD/2025

AI Insights

The case involves an appeal by Bhikhabhai Mangalbhai Patel against the order of the Commissioner of Income Tax (Appeals) which confirmed the addition of Rs. 15,00,000 to the assessee's income for the Assessment Year 2017-18. The addition was initially made by the Assessing Officer due to unexplained cash deposits in the assessee's bank accounts. The assessee provided bank statements showing that the deposits were from previously withdrawn amounts intended for house construction, which were not utilized and re-deposited. The Tribunal, after reviewing the evidence and explanations provided, concluded that the source of the deposits was adequately explained and thus, the addition was unjustified.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784631 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 16-09-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROHIT AA SUDA NI
• Assessee Lawyers: M K PATEL

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI T R SENTHIL KUMAR, JUDICIAL MEMBER ITA No.1743/Ahd/2025 (Assessment Year: 2017-18) Bhikhabhai Mangalbhai Patel, C/57, Amin Park Society, Nr. Pavandham Society, Manjalpur, Vadodara-390011. [PAN :ACJPP3974 H] Vs. The Income Tax Officer, Ward-4(1)(1), Vadodara. (Appellant) .. (Respondent) Appellant by : Shri M K Patel, AR Respondent by: Shri Rohit Aasudani, Sr. DR Date of Hearing 12.11.2025 Date of Pronouncement 13.11.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 17.07.2025 passed by the Commissioner of Income Tax (Appeals)National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2017-18. 2. The assessee has raised the following grounds of appeal: 1. The learned CIT(A) has grievously erred in law, and on facts, in confirming the addition of Rs.15,00,000/- made in respect of cash deposited in appellant’s bank account. Printed from counselvise.com ITA No. 1743/Ahd/2025 Asst. Year : 2017-18 - 2– 2. That on facts and in law, the entire addition ought to have been deleted as prayed for. 3. The appellant craves leave to add, alter, amend any ground of appeal. 3. On perusal of the records, we find that the Assessing Officer made an addition of Rs.15,00,000 on account of cash deposits made by the assessee in three different bank accounts, as detailed below: Sr.No. Name of Bank Amount(in Rs.) Date of Deposit 1. State Bank of India 5,00,000/- 16.11.2016 2. Axis Bank 7,00,000/- 14.11.2016 3. ICICI Bank 3,00,000/- 25.11.2016 4. The assessee furnished copies of bank statements showing that on 18.07.2016, withdrawals were made of Rs.5,00,000/-, Rs.7,00,000/-, and Rs.3,00,000/-, which were subsequently re- deposited in the respective bank accounts on 16.11.2016, 14.11.2016, and 25.11.2016. The Ld. Counsel for the assessee further explained that these withdrawals were made for the purpose of construction of a house. However, as the construction activity did not materialize, the withdrawn funds were re-deposited into the same bank accounts. On verification, we find that the deposits are duly supported by corresponding withdrawals from the same bank accounts. Considering these facts and the explanation of the assessee, we are of the view that the source of deposits stands satisfactorily explained. Hence, the addition made by the Assessing Officer of ₹15,00,000/- cannot be sustained. Printed from counselvise.com ITA No. 1743/Ahd/2025 Asst. Year : 2017-18 - 3– 5. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 13.11.2025. S /- Sd/- Sd/- (T R SENTHIL KUMAR) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 13.11.2025 MV 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, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "