DHAIRYA JYOTISH DANDWALA,AHMEDABAD V. THE ITO, WARD-5(2)(2), AHMEDABAD

ITA 813/AHD/2025

AI Insights

This case involves an appeal by Dhairya Jyotish Dandwala against the order of the CIT(A)/Addl/JCIT(A)-2, Chennai, which confirmed the addition of Rs. 5,80,000 as unexplained expenditure by the Assessing Officer under section 69C of the Income Tax Act for the assessment year 2017-18. The assessee had made substantial cash payments for credit card purchases, which were scrutinized. The Assessing Officer initially added the amount as unexplained expenditure, but the Tribunal found that the assessee had received cash from his parents, which was used to pay the LIC premiums, thus explaining the source of the expenditure.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717723 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 17-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEES CREDIT; KAMAL DEEP SINGH
• Assessee Lawyers: TEJ SHAH
• Keywords: Unexplained expenditure; Tax effect
• Section: 133(6); 69C

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before Dr. BRR Kumar, Vice President And Ms. Suchitra Kamble, Judicial Member Dhairya Jyotish Dandwala, 101, Satvik Appartment, Nandoli Gam Road, Shilaj Lake, Shilaj, Ahmedabad PAN: AGGPD5272P (Appellant) Vs The ITO, Ward-5(2)(2), Ahmedabad (Respondent) Assessee by: Shri Tej Shah, A.R. Revenue by: Shri Kamal Deep Singh, Sr. D.R. Date of hearing : 08-07-2025 Date of pronouncement : 14-08-2025 आदेश/ORDER Per Suchitra Kamble, Judicial Member: This is an appeal filed against the order dated 12-03- 2025 passed by CIT(A)/Addl/JCIT(A)-2, Chennai for assessment year 2017-18. 2. The grounds of appeal are as under:- “1. That the Ld. CIT(A) erred in law and in the facts of the case in confirming the order of the AO in making addition of Rs. 5,80,000/- u/s 69C of the act. Total tax effect Rs. 3,48,000/-” 3. The assessee filed return of income on 20th December, 2017 declaring income at Rs. 4,96,040/-. During the year under consideration, the assessee derived income from small ITA No. 813/Ahd/2025 Assessment Year 2017-18 Printed from counselvise.com I.T.A No. 813/Ahd/2025 Dhairya Jyotish Dandwala, A.Y. 2017-18 2 construction work and as advisor and director in real estate. The assessee also received income as advisor for catering business. The case of the assessee was selected for limited scrutiny for the reason large cash payments made for credit card purchases. Statutory notices were issued and the same was replied by the assessee. The Assessing Officer observed that the assessee made substantial payment for credit card purchase in cash amounting to Rs. 5,80,000/- through credit card during assessment year 2017-18. The assessee has deposited cash of Rs. 5,80,000/- on 16-11-2009 in City Bank for assessee’s credit card payment. The notice u/s. 133(6) of the Act was issued to City bank calling for the credit card statement of the assessee, the same was submitted and after going through the same, the Assessing Officer held that the assessee failed to discharge his onus regarding the payments made for the purpose of LIC payment by him for his father and mother. The Assessing Officer made addition of Rs. 5,80,000/- u/s. 69C as unexplained expenditure. 4. The ld. A.R. submitted that the assessee has paid LIC premium of his parents through his credit card. For the said payment of premium, the assessee received Rs. 1,50,000/- on 03-11-2016 from his mother. The assessee also received Rs. 1,50,000/- on 31-10-2016, Rs. 1,00,000/- on 07-11-2016 and Rs. 1,80,000/- on 10-11-2016 from his father. Thus, the assessee after receiving the said cash from his parents paid the LIC premium amounting to Rs. 5,80,000/- on 16-11-2016. Therefore, assessee explained all the expenditure on the credit card to the Assessing Officer. Printed from counselvise.com I.T.A No. 813/Ahd/2025 Dhairya Jyotish Dandwala, A.Y. 2017-18 3 5. The ld. D.R. relied upon the assessment order and the order of the CIT(A). 6. We have heard both the parties and perused all the relevant material available on record. The assessee made payment of LIC premium of his father and mother for which he received cash from his parents and the assessee also explained the source of their payment. Therefore the credit card payment has been categorically explained by the assessee. These payments of LIC premium were not doubted by the Assessing Officer. Hence the CIT(A) was not right in making addition to the extent of Rs. 5,80,000/- u/s. 69C of the Act. Thus, the appeal of the assessee is allowed. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 14-08-2025 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 14/08/2025 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद Printed from counselvise.com "