BHIKHABHAI RAMANBHAI PATEL,AHMEDABAD V. THE ITO, WARD-3(2)(1), AHMEDABAD

ITA 746/AHD/2025

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The case involves Bhikhabhai Ramanbhai Patel, who appealed against the order of the Commissioner of Income-Tax (Appeals) confirming the addition of Rs.8.00 lakhs to his income as unexplained cash deposits during the demonetization period in India. The Assessing Officer had initially made this addition, suspecting that the cash was not from legitimate sources, given the timing and the assessee's financial activities. The Tribunal dismissed the appeal, agreeing with the lower authorities that the assessee did not adequately explain the source of the cash deposits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 823067 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 08-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAVINDRA; LD.
• Assessee Lawyers: S.N. DIVATIA

Judgement Text

"आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ अहमदाबाद \bयायपीठ ‘SMC’ अहमदाबाद। अहमदाबाद। अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD ] ] BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER ITA No.746/Ahd/2025 Assessment Year : 2017-18 Bhikhabhai Ramanbhai Patel C/o. M/s.Bhikhalal Ramanlal Patel Nr.Borring, ST Road, Sanand PAN:AEHPP 2121 A Vs The ITO, Ward-3(2)(1) Ambawadi Ahmedabad. (Applicant) (Responent) Assessee by : Shri S.N. Divatia, AR Revenue by : Shri Ravindra, ld.SR.DR सुनवाई क तारीख/Date of Hearing : 17/12/2025 घोषणा क तारीख /Date of Pronouncement: 23/12/2025 आदेश आदेश आदेश आदेश/O R D E R The above appeal has been preferred by the assessee against order passed by the Ld.Commissioner of Income-Tax(Appeals), ADDL/JCIT(A)-5, Kolkata [hereinafter referred to as “ld.CIT(A)] dated 09.12.2024 under section 250 of the Income Tax Act, 1961 (\"the Act\" for short) for the assessment year 2017-18. 2. The assessee, in this appeal, is aggrieved by the action of the ld.CIT(A) in confirming addition made by the Assessing Officer (“AO” for short) of Rs.8.00 lakhs as unexplained cash deposits in the bank account of the assessee during the demonetization period. 3. The appeal of the assessee is time barred by 39 days. A separate application has been filed for condonation of delay. Considering the averments made in the application, the delay in filing the appeal before the Tribunal is condoned. Printed from counselvise.com ITA No.746/Ahd/2025 2 4. Brief facts of the case are that the assessee had deposited an amount of Rs.8,16,500/- in his bank accounts with The Kalupur Comm. Co-op. Bank Ltd. and Naroda Nagrik Cooperative Bank Ltd., Ahmedabad, in the month of November, 2016 i.e. during the demonetization period. On being asked to explain the source of deposits, the assessee explained that the above cash was deposited out of past withdrawals from the bank of Rs.15.00 lakhs on 19.3.2016. The AO, however, observed that from the record it revealed that the assessee has taken loan of Rs.20 lakhs on 15.3.2016 and out of that he had withdrawn an amount of Rs.15 lakhs on 19.3.2016. He also observed that from the above facts, it revealed that the assessee was in need of cash, and hence he had taken loan on interest in March, 2016, which might have been consumed by him. The AO, further, noted that even before the demonetization period also, the assessee had deposited cash in his bank account of Rs.9,03,900/-, hence, it was hard to believe that the said balance of Rs.8.00 lakhs was out of cash withdrawals of Rs.15 lakhs on 19.3.2016. He, therefore, made the impugned addition of Rs.8.00 lakhs into the income of the assessee. Being aggrieved of the said order, the assessee went in appeal before the ld.CIT(A). 5. The ld.CIT(A) has given further opportunity to the assessee to explain the source of deposits, and asked the assessee to furnish the following documents: 1. Your source of income during financial year 2016-17 with necessary evidence. 2. Names and PANs of all the dependent members in your family during financial year 2016-17. 3. Average household expenses per month during financial year 2016- 17. 4. Date wise cash flow statement / cash account from 1/4/2014 to 31/3/2017. Printed from counselvise.com ITA No.746/Ahd/2025 3 6. However, since the assessee failed to furnish the aforesaid documents and did respond to the notice issued by the ld.CIT(A), he confirmed the addition so made by the AO. Being aggrieved by the order of the ld.CIT(A), the assessee is in appeal before this Tribunal. 7. I have heard rival submissions and gone through the record. The case of the assessee is that the assessee had taken loan of Rs.20.00 lakhs from the bank which was deposited in his saving bank account on 15.3.2016. It is commonly known that the bank advances loan, considering the need of the applicants for the specific purpose. It was mentioned that the assessee had obtained loan of Rs.20 lakhs on account of cold-storage, which apparently showed that the assessee was indulging in the some activity and the assessee had obtained loan from the bank for the some specific purpose, which in the case of the assessee has been mentioned as cold storage, “S.R. Cold Storage”. In this case, apart from deposit of Rs.8.00 lakhs, during the month of November, 2016, the assessee had deposited an amount of Rs.9.00 lakhs, which is before start of the period of demonetization. Hence, under this circumstance, it cannot be said that the aforesaid amount of Rs.8.00 was deposited out of the past cash withdrawals. No justification could be given by the ld.counsel for the assessee for such cash, as cash-in-hand. Therefore, I do not find any reason to interfere with the order of the ld.CIT(A) in this respect, and the same is upheld. 8. In the result, the appeal of the assessee stands dismissed. Order pronounced on 23rd December, 2025. Sd/- (Sanjay Garg) Judicial Member Ahmedabad,dated 23/12/2025 vk* Printed from counselvise.com "