CHIRAG MAHESHKUMAR VYAS,AHMEDABAD V. .THE DY.CIT, CENTRAL CIRCLE-2(2), AHMEDABAD

ITSSA 14/AHD/2024

AI Insights

The case involves Chirag Maheshkumar Vyas, an individual and director at M/s. John Energy Limited, who appealed against the order of the CIT(A) which upheld the additions made by the AO during the assessment year 2016-17. The additions were initially made following a search survey action at M/s. John Energy group, where discrepancies in the assessee's capital account and unexplained agricultural income were noted. The ITAT, after reviewing the evidence, including the assessee's bank withdrawals and declared agricultural income in previous years, decided in favor of the assessee, allowing the appeal and deleting the additions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 25290 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 19-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A P SINGH
• Assessee Lawyers: S N DIVETIA
• Keywords: Capital receipt

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT SHRI TR SENTHIL KUMAR, JUDICIAL MEMBER I.T(SS)A. No.14/Ahd/2024 (Assessment Year: 2016-17) Chirag Maheshkumar Vyas, Sivalaya Sr.No.8, Swatantra Ashok Vatika Road, Opp. Kotak House, Bodakdev, Ahmedabad-380054. Vs. D.C.I.T, Central Circle-2(2), Ahmedabad. [PAN No.ABYPV5751G] (Appellant) .. (Respondent) Appellant by : Shri SN Divetia with Shri Samir Vora,, ARs Respondent by: Shri A P Singh, CIT. DR Date of Hearing 12.12.2024 Date of Pronouncement 19.12.2024 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)-12, Ahmedabad, vide order dated 22.06.2024 passed for the Assessment Year 2016-17. 2. The Assessee has taken the following grounds of appeal:- 1.1 The order passed by U/s.250 passed on 22.06.2023by CIT(A)-12, Ahmedabad upholding the additions aggregating to Rs.13,14,524/-(Rs.5,00,000 + 7,67,580 + 46944) made by AO is wholly illegal, unlawful and against the principles of natural justice. IT(SS)A No. 14/Ahd/2024 Chirag M Vyas vs. DCIT Asst.Year –2016-17 - 2– 2.1 The ld.CIT(A) has grievously erred in law and or on facts in upholding the additions aggregating to Rs.13,14,524/- (Rs.5,00,000 + 7,67,580 + 46944) made by AO. 2.2 That the in the facts and circumstances of the ld.NFAC ought not to have upheld the additions aggregating to Rs.13,14,524/- It is therefore, prayed that the additions upheld by the CIT(A) may kindly be deleted. 3. The assessee is an individual and Director in M/s. John Energy Limited. A search survey action has been conducted in the case of M/s.John Energy group on 08.03.2016. During the course of assessment proceedings, the AO noticed that there has been an increase in the capital account of the assessee by an amount of Rs.5,00,000/- which was claimed to be received from his daughter Ms Richa Chirag Vyas. Owing to the non submission of evidences regarding the source of increased in capital, the AO treated the amount of Rs.5,00,000/- u/s.68 of the Act, as unexplained income. Further, the AO made addition of Rs.46,944/- from the amount of Rs.4,44,000/- declared by the assessee as income from agriculture. The Ld.CIT(A), confirmed the addition owing to non-compliance. 4. On going through the records, we find that the assessee had sufficient cash withdrawal to prove the sources of Rs.7,67,580/- and we also find that the assessee had shown agricultural income of Rs.1,60,000/- in the AY 2009-10 and Rs.1,62,000/- in AY 2011-12. Post survey, the assessee filed return of income declaring total income of Rs.49,41,000/-. Hence, the claim of the assessee in declaring the agricultural income cannot be disputed at this juncture. Keeping in view, the return of income and the earning of agricultural income, the bank withdrawals we hold that no further addition IT(SS)A No. 14/Ahd/2024 Chirag M Vyas vs. DCIT Asst.Year –2016-17 - 3– is called for on account of capital receipt, unexplained money and agricultural income. 5. In the result, the appeal of the assessee is allowed. This Order pronounced in Open Court on 19.12.2024 Sd/- Sd/- (TR SENTHIL KUMAR) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Ahmedabad; Dated 19.12.2024 Manish, Sr. PS TRUE COPY आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ(अपील) / The CIT(A)- 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडᭅ फाईल / Guard file. आदेशानुसार/ BY ORDER, सहायक पंजीकार (Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "