DHARA RAKESH SHETH,AHMEDABAD V. INCOME TAX OFFICER, WARD 7(1)(1), AHMEDABAD, AHMEDABAD

ITA 1186/AHD/2025

AI Insights

The case involves Dhara Rakesh Sheth, the appellant, who contested an order by the Income Tax Officer (ITO) adding Rs. 10,14,575 to her income as unexplained investment for the Assessment Year 2016-17. The addition was based on a loss from share trading reported in an earlier financial year, which the ITO deemed unexplained due to the absence of supporting details from the assessee. The Tribunal, after reviewing the case, found the Assessing Officer's order unsubstantiated and allowed the appeal, thereby removing the additional income assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 771845 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2016-2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATEEK SHARMA
• Assessee Lawyers: EMAIL; SPEED POST
• Keywords: Unexplained investment
• Section: 144; 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.1186/Ahd/2025 (Assessment Year: 2016-17) Dhara Rakesh Sheth, 9, Ashwini Apartment, Tejendra Park, Naranpura, Ahmedabad-380013. [PAN : BGLPS5238 L] Vs. The Income Tax Officer, Ward-7(1)(1), Ahmedabad. (Appellant) .. (Respondent) Appellant by : None Respondent by: Shri Prateek Sharma, Sr. DR Date of Hearing 05.08.2025 Date of Pronouncement 25.08.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned This appeal is filed by the Assessee against the appellate order dated 12.04.2024 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2016-17. 2. For the sake of ready reference, the entire order of the Assessing Officer is reproduced herewith: - Printed from counselvise.com ITA No.1186/Ahd/2025 Dhara Rakesh Sheth Vs. ITO Asst. Year 2016-17 - 2– “In this case the Return of income for A.Y.2016-17 was filed by the assessee on 05.08.2016, declaring total income at Rs. 2,10,000 /-. The case has been Selected under Limited Scrutiny (Computer Added Scrutiny Selection). Notice u/s.143(2) of the Act issued on 07/07/2017 and served upon the assessee by E-mail and speed post at the latest address available on record. 2 Thereafter to complete the assessment, notice u/s. 142(1) r.w.s 129 of the Act issued on 05/11/2018 on e-mail and was personally received by the assessee. 3. Notice u/s 143(2) of the Income tax Act, 1961 was issued to the assessee on 07/07/2017. The assessee has her source of income is Salary only. 4. The assessee has made a loss of Rs.10,14,575/- from trading of shares during F.Y.2010-11, in this regarding a show cause notice dtd. 10-12-2018 issued and served upon the assessee. 5. The show cause notice dated 10-12-2018 issued to the assessee is reproduced here as under. On verification of your submission it is noticed that you have made loss of Rs. 10,14,575/- during F.Y.2010-11 from trading of shares. You must had to settle the account with the broker/Operator. You have not furnish any details of source of Rs. 10,14,575/- till date. You are show caused why Rs. 10,14,575/- treated as your unexplained investment u/s.69 of the I.T. Act. 1961. You4 reply should be reach to this office on or before 13-12-2018. If you do not submit any reply/explanation by that time it will be assumed that you have nothing to say and the assessment order will be finalized without any further intimation. 6. In this regard, the assessee has not furnished required details or not sought for any adjournment till date. The assessee has not Printed from counselvise.com ITA No.1186/Ahd/2025 Dhara Rakesh Sheth Vs. ITO Asst. Year 2016-17 - 3– explained the source of Rs.10,14,575/- till date. However, assessee failed to furnish the required details of her unexplained investment of an amount of Rs. 10,14,575/-, Therefore an amount of Rs. 10,14,575/- has been added to the total income of the assessee. ….. 7. Subject to the above discussion/remarks the total income of the assessee is computed as under: Total Income as per return of income Rs. 2,10,000/- ADD: Unexplained investment as discussed in the order Rs. 10,14,575/- Total Income assessed Rs. 12,24,575/- Rs. 12,24,575/- Assessed under section 144 r.w.s 147 of the Income-tax Act at Rs. 12,24,575/-.” 3. On going through the above order, we find no iota of reason to affirm the order of the Assessing Officer. 4. In the result, appeal of the assessee is allowed. The order is pronounced in the open Court on 25.08.2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 25.08.2025 MV Printed from counselvise.com ITA No.1186/Ahd/2025 Dhara Rakesh Sheth Vs. ITO Asst. Year 2016-17 - 4– आदेश की \u0007ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b थ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 11.08.2025 2. Date on which the typed draft is placed before the Dictating Member 20.08.2025 3. Other Member 20.08.2025 4. Date on which the approved draft comes to the Sr.P.S./P.S 21.08.2025 5. Date on which the fair order is placed before the Dictating Member for pronouncement 25.08.25 6. Date on which the fair order comes back to the Sr.P.S./P.S 25.08.25 7. Date on which the file goes to the Bench Clerk 25 .08.25 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "