DINESHKUMAR SOMABHAI PATEL,AHMEDABAD V. THE ITO, WARD- 4, MEHSANA

MA 43/AHD/2025

AI Insights

The case revolves around a Miscellaneous Application filed by Dineshkumar Somabhai Patel against the Income Tax Officer (ITO), Ward-4, Mehsana, concerning the addition of unexplained cash deposits to his income. The ITAT had previously dismissed Patel's appeal, confirming the addition as per the findings of the CIT(A). The primary contention in the Miscellaneous Application was the incorrect factual basis noted by the ITAT, which allegedly stated that the cash deposits were sourced from withdrawals made almost four years back. Patel argued that the deposits were actually sourced from withdrawals made immediately before the deposits. However, the ITAT, upon reviewing the evidence, found no mistake in their earlier factual finding and dismissed the application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652621 (ITAT-AHMEDABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-06-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT
• Assessee Lawyers: DEEPAK SHAH

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE: SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER MISCELLANEOUS APPLICATION No. 43/Ahd/2025 (in I.T.A. No. 1485/Ahd/2024) (िनधा[रण वष[ / Assessment Year : 2017-18) Dineshkumar Somabhai Patel 3, Panchamrut Vastuvilla, Opp. Murlidhar Party Plot, Science City Road, Sola, Ahmedabad – 380060 बनाम / Vs. The ITO Ward-4, Mehsana Öथायी लेखा सं./जीआइआर सं./PAN/GIR No. : ABXPP2992A (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : Shri Deepak Shah A.R. Ĥ×यथȸ कȧ ओर से/Respondent by : Shri Abhijit, Sr. DR Date of Hearing 06/06/2025 Date of Pronouncement 19/06/2025 (आदेश)/ORDER PER SMT. ANNAPURNA GUPTA, AM: The present Miscellaneous Application has been filed by the assessee, pointing out mistake in the order passed by the ITAT in appeal in ITA No. 1485/Ahd/2024 dated 19.11.2024. MA No. 43/Ahd/2025 [Dineshkumar Somabhai Patel vs. ITO] A.Y. 2017-18 - 2 – 2. The mistake pointed out in the order of the ITAT was with reference to its finding of fact that the assessee had explained the source of cash deposit from withdrawals made from his bank account almost 4 years back. The issue involved in the present appeal related to addition made to the income of the assessee on account of cash deposits in the bank account, source of which, remained unexplained. The ITAT dismissed the assesses appeal against the order of the Ld.CIT(A) confirming the addition of unexplained cash deposits in Bank noting the findings of the Ld. CIT(A) that the source of cash deposit was attributed by the assessee to cash withdrawn earlier, but cash was noted to be withdrawn from his bank account almost 4 years back and no reason was given for holding such huge amount of cash for such a long period of time and re-depositing it later. Coupled with this finding was also the finding that the assessee had evidenced the source of cash deposit by way of furnishing only its cash flow statement, without substantiating the entries therein. 3. The Ld. Counsel for the assessee has pointed out that the ITAT has noted incorrect fact of the deposits being sourced from withdrawals almost 4 years back. His contention was that the deposit was sourced from withdrawals made immediately before the deposits. He drew our attention to the copy of cash book filed by the assessee evidenced with the bank statement, pointing out that the deposits made in the impugned year were sourced by MA No. 43/Ahd/2025 [Dineshkumar Somabhai Patel vs. ITO] A.Y. 2017-18 - 3 – withdrawals made in the immediately preceding year i.e. A.Y. 2016-17, wherein, there were withdrawals made of approximately Rs.21,00,000/- in 3 lots; Rs.9,00,000/- + 9,00,000 + 3,00,000/-. To this, it was pointed out at bar to the Ld.Counsel for the assessee that the Ld. CIT(A) had noted withdrawals made 4 years back by the assessee also which was evidenced by entry in the cash book on 29th December, 2014 of a withdrawal of Rs.5,00,000/-, which balance was carried forward till the impugned year for re-deposit. The Ld. Counsel for the assessee was unable to controvert the said fact except for stating that the deposits were related to withdrawals made in the immediately preceding financial year and not made 4 years back. 4. We have perused the evidence on which the assessee himself has relied i.e. cash book and we find that there is no mistake in the order of the ITAT noting fact that the deposits in the bank account in cash were sourced from withdrawals made almost 4 years back. There are entries of withdrawals in cash from different bank accounts of the assessee almost 4 years back which have remained accumulated as cash in hand up to the impugned year and to the date when the amounts have been deposited in the bank account. Therefore, we do not find any merit in the contention of the Ld. Counsel for the assessee before us of there being any mistake in the order of the ITAT vis a vis recording a finding of fact that the MA No. 43/Ahd/2025 [Dineshkumar Somabhai Patel vs. ITO] A.Y. 2017-18 - 4 – cash deposits were sourced from withdrawals made almost four years back. 5. In the result, Miscellaneous Application filed by the assessee is dismissed. This Order pronounced on 19/06/2025 Sd/- Sd/- (T.R. SENTHIL KUMAR) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 19/06/2025 S. K. SINHA True Copy आदेश कȧ Ĥितिलǒप अĒेǒषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंिधत आयकर आयुƠ / Concerned CIT 4. आयकर आयुƠ(अपील) / The CIT(A)- 5. ǒवभागीय Ĥितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "