DHARMENDRASINH RANJIT CHAVDA,BARDOLI V. THE INCOME TAX OFFICER, WARD-01, BARDOLI, SURAT

ITA 1334/SRT/2024

AI Insights

This case involves an appeal by Dharmendrasinh Ranjit Chavda against an order from the National Faceless Appeal Centre (NFAC), which had upheld an addition of Rs. 12,90,000 to his income for the assessment year 2017-18. The addition was made under section 68 of the Income Tax Act, concerning unexplained cash deposits during the demonetization period in India. The assessee contested this addition, providing detailed bank statements, a cash flow statement, and other documents to explain the source of the deposits. The Income Tax Appellate Tribunal (ITAT) in Surat, after reviewing the evidence, decided in favor of the assessee, allowing the appeal and removing the addition.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831712 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 21-12-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAMITA PATEL
• Assessee Lawyers: HIMALI MISTRY

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT “SMC” BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.1334/SRT/2024 (Assessment Year: 2017-18) Dharmendrasinh Ranjit Chavda, Afwa, Bardoli, Haripura, B.O. Bamni, Surat-394620 PAN : ALBPC0326K Vs. The ITO, Ward-1, Bardoli (Appellant) .. (Respondent) Appellant by : Ms. Himali Mistry, C.A. Respondent by: Ms. Namita Patel, Sr. D.R. Date of Hearing 20.01.2026 Date of Pronouncement 23.01.2026 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER:- This is an appeal filed against the order dated 20-01-2024 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2017-18. Delay condoned. 2. The assessing officer made addition of Rs. 12,90,000/- u/s. 68 of the Act related to cash deposits during demonetization period. The assessee has given the bank statement before the A.O. as well as before the CIT(A) explaining details of cash withdrawals prior to demonetisation along with the cash deposits from time to time. Before us, the assessee also gave the cash flow statement of the said withdrawals and cash deposits alongwith Printed from counselvise.com ITA No. 1334/Srt/2024 Dharmendrasinh Ranjit Chavda Vs. ITO Asst. Year : 2017-18 - 2– bank statement. Before us, the assessee submitted the cash withdrawal certificate issued by Bank of India as well as confirmation letters from his brothers. The assessee also gave the details of Kisan Credit Card (KCC) loan repayment for which the assessee made cash deposits prior to demonetization as well. Therefore, we hold that the addition does not sustain. 4. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 23.01.2026 Sd/- Sd/- Sd/- Sd/- (DR. B.R.R. KUMAR) (SUCHITRA KAMBLE) VICE-PRESIDENT JUDICIAL MEMBER Surat; Dated 23/01/2026 ak आदेश की \u0007ितिलिप अ ेिषत/ / / /Copy of the Order forwarded to : 1. अपीलाथ\u0011 / The Appellant 2. \u0007\u0012थ\u0011 / The Respondent. 3. संबंिधत आयकर आयु\u001a / Concerned CIT 4. आयकर आयु\u001a ) ) ) ) अपील ( ( ( ( / The CIT(A)- 5. िवभागीय \u0007ितिनिध , , , , आयकर अपीलीय अिधकरण , , , , /DR,ITAT, Surat, 6. गाड! फाईल / / / / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Surat Printed from counselvise.com "