DOMERAJI INDAJI DEVRA,BANASKANTHA V. THE ITO, WARD-4, PALANPUR

ITA 257/AHD/2025

AI Insights

The case involves Domeraji Indaji Devra, a potato dealer, who appealed against the order of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, Delhi, which confirmed the addition of Rs. 25,50,000 as unexplained money for the Assessment Year 2017-18. The primary contention was whether the cash deposits in the assessee's bank account were unexplained and whether the income should be taxed at a special rate under Section 115BBE, which was argued to be applicable from AY 2018-19 onwards, not AY 2017-18. The Tribunal noted that the assessee had been engaged in cash transactions as part of his business and that the revenue authorities did not substantiate their claims adequately.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772650 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJENKUMAR M VASAVDA
• Assessee Lawyers: JIMI PATEL

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.257/Ahd/2025 (Assessment Year: 2017-18) Domeraji Indaji Devra, 59, Bhaker Kheda, Bhaker Moti, Dantiwada, Banaskantha-385510. [PAN :CQIPD5721 R] Vs. Income Tax Officer, Ward-4, Palanpur. (Appellant) .. (Respondent) Appellant by : Shri Jimi Patel, AR Respondent by: Shri Rajenkumar M Vasavda, Sr. DR Date of Hearing 13.08.2025 Date of Pronouncement 26.08.2025 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 15.07.2024 passed by the Commissioner of Income Tax (Appeals)National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2017-18. Printed from counselvise.com ITA No. 257/Ahd/2025 Domeraji Indaji Devra Vs. ITO Asst. Year : 2017-18 - 2– 2. The assessee has raised the following grounds of appeals: 1. Ld.CIT(A) erred in law and on facts in confirming addition of Rs.25,50,000/- made u/s.69A of the Act being allege unexplained money without appreciating facts and law of the case properly. 2. Without prejudice to above, Ld .Assessing Officer erred in law and facts in taxing the income at special rate mentioned in Section 115BBE of the Act without appreciating that amendment made in Section 115BBE will be applicable from AY 2018-19 onwards and not applicable for AY 2017-18 which is assessment year under question. 3. The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing if need arise. 4. The Assessing Officer observed that assessee had total deposits of Rs.25,50,000/- which includes cash deposit of Rs.17,50,000/- deposited in the bank account. The Ld. CIT (A) held that though the assessee had submitted that the amount was deposited to repay the loan taken from RBL Bank, the appellant has not furnished any loan certificate to substantiate this claim. Before us, it was submitted that the assessee is a potato dealer and has been doing the business in cash over the years. The cash deposits are consistent pattern in the business of the assessee during the year and the earlier years. The alleged repayment of loan could have been simply verified by the Ld.CIT (A) by examining the bank statement, for which the revenue authorities failed to do, thus digressing the issue of cash deposits and the source of cash thereon. On the point of cash deposits it was submitted that the assessee has been engaged in the sale of agricultural produce (potatoes). This fact is not disputed by the revenue authorities. Hence, keeping in view the specific facts of the case and the bank statement filed by the assessee, we hold that no addition is warranted. Printed from counselvise.com ITA No. 257/Ahd/2025 Domeraji Indaji Devra Vs. ITO Asst. Year : 2017-18 - 3– 5. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 26.08.2025. Sd/- Sd/-/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 26.08.2025 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 "