DHANANJAY TRADELINK PVT. LTD.,AHMEDABAD V. THE ITO, WARD-1(1)(3), AHMEDABAD

ITA 842/AHD/2025

AI Insights

The case involves Dhananjay Tradelink Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, which upheld the addition of Rs.14,39,98,052 as unexplained income under section 68 of the Income Tax Act. The additions included Rs. 6,02,41,420 towards unsecured loans and Rs. 8,37,56,632 towards sundry creditors. The Assessing Officer had initially treated these amounts as non-genuine due to lack of compliance and insufficient evidence provided by the assessee. The Tribunal found that the assessee was not given a proper opportunity to present its case and thus decided to set aside the CIT(A)'s order and remand the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780633 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Appeal Filed On: 22-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: S.N DIVETIA
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences; Principle of natural justice
• Section: 143(3); 68; 133(6)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.842/Ahd/2025 (Assessment Year: 2018-19) Dhananjay Tradelink Pvt. Ltd., 505, Padshani Pole Kalupur, Ahmedabad-380001. [PAN :AADCD8007 A] Vs. The Income Tax Officer, Ward-1(1)(3), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri S.N Divetia, with Shri Samir Vora, ARs Respondent by: Shri Rignesh Das, CIT. DR Date of Hearing 06.10.2025 Date of Pronouncement 08.10.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, vide order dated 07.03.2025 relevant to the Assessment Year 2018-19. 2. The assessee has raised the following grounds of appeal: 1.1 The order passed by U/s.250 passed on 07.03.2025 for AY 2018-19 by NFAC, [CIT(A)], Delhi (for short CIT(A)\" upholding the addition of Rs.14,39,98,052/- consisting of Rs. 6,02,41,420/- towards unsecured loans and Rs. 8,37,56,632/- towards sundry creditors as unexplained income u/s 68 is wholly illegal, unlawful and against the principles of natural justice. Printed from counselvise.com ITA No. 842/Ahd/2025 Asst. Year : 2018-19 - 2– 2.1 The Id. CIT(A), has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant. The CIT(A) has passed a non-speaking order, relying upon the findings of AO which is illegal and unlawful. 2.2 The Id. CIT(A) ought to have allowed sufficient opportunity before disposing off the appeal and intimating the further details required for the appeal. 3.1 The Id.CIT(A) has grievously erred in law and or on facts in upholding the addition of Rs. 14,39,98,052/- consisting of Rs. 6,02,41,420/- towards unsecured loans and Rs. 8,37,56,632/-towards sundry creditors as unexplained income u/s 68. 3.2 That the in the facts and circumstances of the Id. CIT(A), ought not to have upheld the addition of Rs.14,39,98,052/- consisting of Rs. 6,02,41,420/- towards unsecured loans and Rs. 8,37,56,632/-towards sundry creditors as unexplained income u/s 68 3. The brief facts case are that assessee is a company registered under the Companies Act, 1956. It is engaged in the business of trading in Fabric Cotton, Grain, Chemical items etc. It maintains regular books of accounts which are subject to statutory audit. It had filed its original return of income for A.Y.2018-19 on 07.10.2018 declaring total income of Rs.2,34,770/-. The case of the assessee was selected for scrutiny on various issues such as verification of transactions, unsecured loans, non-furnishing quantitative details etc. During the course of assessment proceedings, the AO had issued notices of hearing from time to time which was duly responded. The AO has observed that the three parties from whom unsecured loans aggregating to Rs. 6,02,41,420/- were received had no surplus capital to provide such huge amounts in view of the returned income. Similarly, the notices issued u/s 133(6) on Niyati Chemicals and Megasol Global has failed to comply even to the emails and hence in absence of confirmation, copy of ITR, bank statement and copy of bills, they were treated as unexplained. Hence, Printed from counselvise.com ITA No. 842/Ahd/2025 Asst. Year : 2018-19 - 3– the transactions aggregating to Rs. 8,37,36,632/-with the said parties were treated as non-genuine. The AO completed regular assessment u/s 143(3) rws 144B on the total income of Rs. 14,42,32,822/- after making addition towards unsecured loans of Rs. 6,02,41,440/- and sundry creditors of Rs.8,37,56,832/-. 4. Aggrieved against the Assessment Order, the assessee filed appeal before the Ld. CIT(A), who dismissed the appeal of the assessee. 5. Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal. 6. On perusal of the record, we find that the assessee was granted various opportunities of hearing to furnish details, clarifications, and explanations to substantiate the source of cash deposits. However, assessee failed to establish the creditworthiness and genuineness of the lenders. Consequently, the Ld. CIT(A) upheld the action of the Assessing Officer and dismissed the appeal. We also find that the assessee even failed to submit any details/supporting evidence to prove the source of the cash deposit before the Assessing Officer. The Ld. Counsel for the assessee prayed that, given an opportunity, all the details/clarification/explanation would be provided to the revenue authorities. Hence, in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer for de novo assessment, after affording due opportunity of being heard to the assessee. The assessee shall submit all the relevant bank statement/submission/document before the Assessing Officer and Printed from counselvise.com ITA No. 842/Ahd/2025 Asst. Year : 2018-19 - 4– comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. 7. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 08.10.2025. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 08.10.2025 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 "