DY. COMMISSIONER OF INCOME TAX, JAIPUR, RAJASTHAN, INDIA V. MANAV PANSARI, RAJASTHAN, INDIA

ITA 1188/JPR/2025

AI Insights

The case revolves around an appeal by the Department against the order of the Learned CIT(A), which had set aside the assessment order concerning Manav Pansari for the assessment year 2013-14. The original assessment had added an amount of Rs. 3,18,41,574 as unexplained income, citing unaccounted credits and deposits in Pansari's bank account. However, the CIT(A) found that the source of these funds was traceable through the financial transactions of three partnership firms in which Pansari was a partner. The Tribunal agreed with the CIT(A)'s findings, noting that the Assessing Officer had not effectively challenged the documented sources of the funds.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822773 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 27-08-2025
• Other Referred Cases: Union of India vs. Ashish Agarwal
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALKA GAUTAM
• Assessee Lawyers: VISHNU KHANDELWAL
• Keywords: Set aside; Business expenditure; Source of fund; Deemed to accrue or arise in india
• Section: 147; 148; 40(b)

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”B-Bench” JAIPUR Jherh vUuiw.kkZ xqIrk] ys[kk lnL; ,oa Jh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SMT. ANNAPURNA GUPTA, AM & SHRI NARINDER KUMAR, JM vk;dj vihyla-@ITA No. 1188/JPR/2025 fu/kZkj.k o\"kZ@AssessmentYear : 2013-14 Dy. Commissioner of Income Tax , Jaipur. cuke Vs. Manav Pansari A-7, Showromm Sethi colony, TA Main Agra Road, Jaipur. LFkk;hys[kk la-@thvkbZvkjla-@PAN/GIR No. AARPP1288Q vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksjls@Assessee by : Shri Vishnu Khandelwal, CA. jktLo dh vksjls@Revenue by: Mrs. Alka Gautam, CIT. lquokbZ dh rkjh[k@Date of Hearing : 22/12/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 22/12/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . Department is in appeal, feeling aggrieved by the order dated 10.06.2025, passed by Learned CIT(A), National Faceless Appeal Central (inshore “NFAC”), Delhi, as thereby the assessment order dated 25.05.2023, passed against the assessee-respondent herein, was set aside, and as a result, the only addition of Rs. 3,18,41,574/-, was deleted. Printed from counselvise.com 2 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. Assessment order 2. The assessment order was passed u/s 147 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), relating to the assessment year 2013-14. The order making additional was passed on the ground that the assessee had failed to explain an amount of Rs. 3,18,41,574/- i.e. the amount of credits/deposits in his bank account, during the year under consideration. Wile applying the provisions of Section 69A of the Act, total income of the assessee was computed at Rs. 3,35,82,930/. 3. Arguments heard. File perused. Case of the Department 4. As per case of the department-appellant, vide letter dated 12.02.2020, specific information was received from the office of DDIT (Investigation-III), Jaipur, that the assessee had failed to explain the source of total credits of Rs. 3,18,41,574/- in his bank account IDBI Bank. Said amount included cash deposit of Rs. 15,90,000/-. 5. A notice u/s 148 of the Act was issued to the assessee after recording the reasons that income chargeable to tax had escaped assessment. Subsequently, in terms of judgment by Hon’ble Apex Court in Printed from counselvise.com 3 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. case titled as Union of India vs. Ashish Agarwal, 2022 SCC Online SC 543, notice was served upon the assessee electronically on 27.05.2022, but, the assessee did not file any explanation. That is how, order u/s 148A(d) of the Act was passed explaining reasons for reopening of the case. Notice u/s 148 of the Act then came to be issued to the assessee on 22.07.2022. Version of the assessee 6. In his reply, dated 11.02.2023, the assessee put forth following version as regards the cash deposit in his bank account with IDBI Bank:- “In Point No. 4- “ In respect of cash deposit in bank account maintained with IDBI Bank of Rs. 1590000/- during F.Y. 2012-13, details in following format S. No. Date of Cash deposit Amount Bank A/c No. Name of bank with Address Source of Cash Deposit Proof of source of cash deposit 1. 20/04/2012 400000 106104000060543 IDBI Bank Withdrawal of Rs. 90000 on 10/04/2012 Rs. 550000 withdrawn on 12/041/2012 from IDBI Bank Copy of Cash book is enclosed 2-11 ………. 12. 05/02/2013 200000 106104000060543 IDBI Bank Out of amount withdrawn on 24/01/2013 on Rs. 200000 from IDBI Bank Copy of cash book is enclosed Printed from counselvise.com 4 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. All the cash deposit in the bank is out of the cash balance available in books. The copy of cash book with narration is also enclosed for your ready reference as per Annexure - 1 Point No. 5- The majority credits in the IDBI Bank is from amount withdrawn from the above three partnership firms namely Pansari Gems International, Pansari Gems Corporation and Vinayak Gems Inc. in which he is partner. As and when funds are needed by him or in any of partnership firm, the amount is taken from one firm in his account and paid to other firm and vice cersa or withdrawn by himself. The copy of ledger account of the above three firms in our books are enclosed for your ready reference as per the following annexures:- Pansari Gems International Annexure-M Pansari Gems Corporation Annexure-N Vinayak Gems Inc Annexure-O We are enclosing the Bank Statement of IDBI Bank along with the Bank Book ) with Narrations. From the Bank book submitted above, you would find that all the remaining credit transactions with details narration are from recognized parties.” 7. Thereafter, the Assessing Officer issued show cause notice to the assessee to explain as to why the above said total credit amount of Rs. 3,18,41,574/-, including cash deposit of Rs. 15,90,000/- shall not be treated as unexplained money, and added to his total income. Response to the show cause notice 8. The assessee furnished following reply to the show cause notice:- “In the matter, we are submitting point wise details on variation which are as follows: Complete description of the issues involved: Printed from counselvise.com 5 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. Initiation of Proceeding is not based on specific information. Sir, you have said that in this case specific information has been received from the office of the DDIT (INV)- III Jaipur vide letter no. 3462 dated 12/02/2020 wherein after making enquiries with the assessee it has been informed that the assessee has failed to explain the source of total credit of Rs. 31841574/- in his bank account for the year Including the cash deposit of Rs. 1590000/-. It is very much surprising to note that the investigation was conducting enquiries up to 24/02/2021 by the DDIT(Copy of the notice is enclosed) while you are initiating on the basis of information received on 12/02/2020. Thus, the basis of specific information is not correct. However, you are enquiring about the source of deposit as per the following chart A/C Number Cash deposit in Bank Total credit during the FY 2013-14 106104000060543 Rs. 1590000 Rs. 31841574/- While going through the description of the showcase notice, we are of the view that you have not gone into the details submitted from time to time and issued the show cause notice abruptly in mechanical manner without considering facts of the case. Hence, we are not accepting the proposed variation and filing written reply objecting the proposed variation. We submit as under: 1. We disagree with your interpretation of amount deposited in Bank whether cash or cheque be treated as unexplained money. In this context we would like to say that all transactions are done from cash in hand and through account payee cheques. 2. Assessee is partner of the following 3 firms: a. M/s Pansari Gems International (Duly Audited) (Paper Book Page No-8-26) b. M/s Pansari Gems Corporation (Duly audited) (Paper Book Page No-27-45) c. M/s Vinyak Gems Inc. (Unaudited) Since the assessee is partner in 3 firms and all amounts needed in the firms for their business transactions are to be met by the partner. He has done that by Printed from counselvise.com 6 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. paying to firms by his Bank account through account payee cheques. He has invested capital in all 3 firms and when any amount is required in any firm, he has withdrawn from the firm in which he has balance and paid the same to the needy firm which requires fund for payment to creditors and business expenses. All the payments made to firms are immediately used for paying to creditors or expenses or any other business transaction The detailed chart showing the amount paid by the been utilized is as detailed below asssessee and the purpose it has been utilized is as detailed below: Amount Paid through cheques to Pansarn Gems International in AY 2013- 14(more than Rs. 10000/-) (We have chosen to give details of Ra 10000 and above for summarizing the issue. If you need more, we would produce all the details) Out of IDBI Savings bank A/c No. 106104000060543 of Manav Pansari to Pansari Gems International. (A/c 106102000046419) S. No. Date Particulars Amount paid Amount Received Purpose for which funds were utilized in the firm Remarks 1. 12/04/2012 By Account payee Cheque 950000 341843/- monthly installment on 12/04/2012 Term loan from chola Mandalam taken in the firm 2. 12.05.2012 By account payee cheque 80000 7601/- Cheque issued for insurance and Rs. 75000/- issued to Aditya Gems (sundry creditor) For business Purpose 3-23 24. 20.03.2013 By Account payee cheque 50000 Paid Rs. 25000/- towards labour charges on 20.03.2013 and Rs. 13000/- towards advertisement expenses on 21.03.2013 and Rs. 7190 towards Printed from counselvise.com 7 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. telephone and mobile expenss, Rs. 8322/- towards power and electricity expenses. We are enclosing herewith copies of account of Trade creditors in the books of M/s Pansari gems International showing the payment details. (Paper Book Page no-46-71). We are also enclosing Bank book of Pansari, Gems international for your ready reference., in which you would find that firm needed the funds for carrying its business activities. Funds were transferred to Bank accounts by the partner to honor the cheques issued by the firm. (Annexure-A) The confirmation of M/s Pansari Gems International is enclosed at Paper Book Page no-89-90 Amount Paid through cheques to Pansari Gems Corporation in AY 2013-14(more than Rs. 10000/-) Out of IDBI Savings bank A/c No. 106104000060543 of Manav Pansari to Pansari Gems Corporation) A/c No-106102000032124 S. No. Date Particulars Amount paid Amount received Purpose for which funds were utilized in the firm Remarks 1 03.04.2012 By account payee cheque 200000 352931/- monthly installemnts on 05.04.2012 Term loan from Chola Mandalam taken in the firm 2. 01.06.2012 By account payee cheque 100000 Paid for clearing the cheques in the firm issued 31.05.2012 to travel care Rs. 101996/- For business travelling purpose 3-10. 11 19.03.2013 By account payee 3250000 Paid to sundry Business purpose Printed from counselvise.com 8 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. cheque creditors of firm namely: on 19.03.2013 M/s Dinesh Gems and Jewellers Rs. 1588308/-, Prashan Tholia Rs. 417667/-, Kanchan Jewelle Corporation Rs. 575010 and milin Gems Rs. 1169440/- We are enclosing herewith copies of account of Trade creditors in the books of M/s Pansari gems Corporation showing the payment details. (Paper Book Page no-72-84) We are also enclosing Bank book of Pansari Gems Corporation for your ready reference., in which you would find that firm needed the funds for carrying its business activities. Funds were transferred to Bank accounts by the partner to honor the cheques issued by the firm. (Annexure-B) The confirmation of M/s Pansari Gems Corporation is enclosed at Paper Book Page no-88 Amount paid toVinayak Gems Inc. in AY 2013-14(more than Rs. 10000) Out of IDBI Savings bank A/c No. 106104000060543 of Manav Pansari to Vinayak Gems Inc.A/c No106102000051059 S. No. Date particulars Amount paid Amount received Purpose for which funds were utilized in the firm Remarks 1. 27.10.2012 Rs. 25000/- For opening a bank account. 2. 27.02.2013 Rs. 500000/- Paid Rs. 700000/- on 27.02.2013 to Rudha Impex Printed from counselvise.com 9 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. (sundry creditor) via cheque no. 006910 We are enclosing herewith copies of account of Trade creditors in the books of M/s Vinayak gems Inc. showing the payment details. (Paper Book Page no-85) We are also enclosing Bank book of Vinayak Gems Inc. for your ready reference., in which you would find that firm needed the funds for carrying its business activities. Funds were transferred to Bank accounts by the partner to honor the cheques issued by the firm. (Annexure-C). The copy of Confirmation of Vinayak Gems Inc. is enclosed at Paper book page No-87 From the above details you would find that the main purpose of withdrawing from partnership firms and depositing in his partnership firm's was only for business purpose. Confirmations of all the deposits in saving Bank account(by account payee cheques) is enclosed. (Paper Book Page no-86-95) (Above 10000/-) S. No. Name of party Confirmation Remark/Name 1. Jaipur emporium International Will be submitted in 2 days Amount of interest received on unsecured loan 2. Vinayak Gems Enclosed Partner of M/s Vinayak Gems 3. Pansari Gems Corporation Enclosed Partner of M/s pansari Gems Corporation 4. Pansari Gems International Enclosed Partner in M/s Pansari gems International 5. Puneet Rawat Enclosed Interest received on unsecured loan 6. Ispat Sangrah Will be submitted in 2 days Interest and principal amount received on unsecured loan given 7. LIC of India LIC maturity credited in account LIC matured 8. Rohit Goyal Will be submitted in 2 days Unsecured loan 9. Deepa Agarwal Will be submitted in 2 days Interest and principal amount received on unsecured loan given Printed from counselvise.com 10 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. 10. M K Jewellers Will be submitted in 2 days Interest and principal amount received on unsecured loan given. In Para 2.3.3.of your notice dated 26/04/2023 you have said that the assessee is partner of the firms and he could have easily and directly transferred the amount from one firm to another as and when needed, instead he has routed the amount through his account: In this matter we submit that the questioned raised above by you is of no relevance showing it as unexplained Income. You yourself have accepted that these transactions have been routed from one firm to another firm through his savings account and with account payee cheques only. There is no restriction in any law that says that partner cannot withdraw his capital from his firm or transfer his capital from one firm to another firm. He is using his own capital in running the business of all 3 firms, as and when it is needed as submitted above. The purpose of transfer to firms was to meet the immediate needs of fund for business transaction, which has been explained below in detailed manner. Further to submit that, why any of the partner would let his capital invested in any firm be transferred to another firm as a loan and advances. He has used his own capital through his own saving bank accounts for funds needed in the partnership firms. Further to submit that, partner is entitled to get interest on capital invested in the firm as per section 40(b) of IT act if partners decides to do so.. How correct interest would be calculated without it, if he don't contribute his capital and withdraw his capital through his capital account. Cash deposit details in bank account Now, with regards to cash withdrawn and deposited in savings Bank accounts, we have to say that assessee is partner of 3 firms and for business purpose, he has to keep cash for day to day business expenses and his personal expenses. Assessee has withdrawn fund from Bank, so as to meet any requirement needed in any emergency in the firms. but instead of giving directly cash in the firm, he has deposited amount in Bank and paid to firm through account payee cheque. This is fair practice which he is following form many years. To maintain goodwill and business relation, every creditor has to be paid in time. He has only done so. He has paid immediately to the creditors of firm after transferring the cheques to Printed from counselvise.com 11 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. firms, which is already stated above in charts. For the business having such turnover, he has to maintain cash in personal capacity also to meet immediate need of the hour. However, he has redeposited his personal cash balance in his savings bank account and then transferred to the firm where it is needed. The copy of cash book submitted earlier also reveals that, he was having sufficient cash balance in hand after his personal drawing, which was redeposited in Bank for fransferring cheques to firms in which he was partner. We have also submitted the details for the cheques given to firms after depositing cash which were immediately used for business purpose of the firms in the below table. This accounting practice is followed by him in regular manner in earlier years and which was accepted by the assessing authority In the earlier assessment u/s 147 for AY 2012-13, he has done the same type of accounting practice and his returned income was accepted and no additions were made. We are enclosing the copy of the Notice u/s142 (1) dated 05/12/2019, in which he was asked for the cash deposits in this same bank amount to Rs 1925000/- and it was accepted by the assessing officer of central circle-5, Jaipur. The assessment was completed without making any additions to the income tax return filled u/s 148. (DIN NO 20121117755 dated 14/12/2019) by central circle 5. Jaipur. The copy Notice and order and nil demand u/s 156 is enclosed at paper book Page no. 96-100 As per section 68, any sum found credited in the books of a taxpayer, for which he offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, may be charged to income-tax as the income of the taxpayer of that year. We have already submitted each and every detail of each deposit in bank account and cheques issued from bank. Every single transaction is traceable and verifiable. Assessee is running a business of trading of precious and semi- precious stone and is partner in 3 firms. For the purpose of doing business he needs funds. He has done all these transaction during the normal course of business. How, the amount transferred from bank account to other bank account through account payee cheques can be treated as unexplained income when it is duty reflected in our books and books of the other party in our case he has paid and received funds from his partnership firms in which he is partner. As and Printed from counselvise.com 12 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. when funds are needed in firms, he has paid to the firm and withdrawn from the other firm to meet the immediate need and honour the commitment. All the cash deposited in bank account were out of cash in hand of the assesse. The regular cash book has already been submitted in our earlier reply in which he was having sufficient cash in hand after meeting his house hold expenses. Any person running 2-3 business firms in the capacity of partner, needs cash for any emergency needs in business. He has withdrawn funds from the Bank for the same, If any funds are needed in any firm, he could have easily deposited in cash to firm (in capacity of partner), but he has deposited cash in bank out his cash in hand and transferred to firm through account payee cheque.” Assessment Order is passed 9. After taking into consideration the reply and submissions on behalf of the assessee, the Assessing Officer arrived at the conclusion that the assessee had failed to explain credit transaction amounting to Rs. 3,18,41,574/- including cash deposit amounting to Rs. 15,90,000/-. In this regard, the Assessing Officer recorded following reasons at page 17 to 19 of the assessment order:- “The assessee is an individual and filed his Return of Income u/s 148 of the Act on 16.01.2023 declaring total income of Rs. 17,41,360/-. The assessee in his ITR has disclosed Income from Business and Income(interest received from firm and salary) from Other Sources. The assessee is a partner in 3(three) Firms namely Pansari Gems International, Pansari Gems Corporation and Vinayak Gems Inc. These 3 firms are involved in manufacturing and trading activities of Precious and semi-precious stones. The notices mentioned supra were issued to the assessee through ITBA Portal and the same were delivered to the registered e-mail of the assessee. In response to these notices the assessee furnished Computation of Income, Form-26AS, Balance Sheet and stated that there Printed from counselvise.com 13 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. is no P & L A/c made in the books of the assessee and no tax audit has been done for the A. Υ. 2013-14. The assessee also furnished copy of Bank Statement, Bank Book and copy of Ledger Account of all the 3 firms along with other documents. On perusal of the bank statement of IDBI Bank A/c No. 106104000060543, in the name of Manav Pansari It is seen that the said bank is a Savings Bank Account wherein total credits during the F. Y. 2012-13 amounts to Rs. 3,18,41,574/-including cash deposit amounting to Rs 15,90,000/-. In view of the above, the assessee vide Show cause Notice dated 26.04.2023 was asked to explain the credit transaction in his savings bank account. In reply to the same the assessee filed a submission dated 11.05.2023 and 13.05.2023. The reply of the assessee is perused and considered but not accepted for the reasons below: 1. The said bank account is a Savings Bank Account and the account holder is Manav Pansan. 2. Regarding credits in the IDBI Bank it is seen that majority credits in the said bank account is from Pansari Gems Corporation and the same amount is debited to Pansari, Gems International and Vinayak Gems Inc. and vice versa. Further, it is also seen that the amount credited in the account has been debited on the same day and that too the whole credit amount. As the assessee is the partner of all the 3 (three) Firms he could have easily and directly transferred the amount from one firm to the other as and when needed, instead he has routed the money through his account. 3. The assessee has done business transactions of the firm through his savings bank account. All the transactions of the 2 (two) firms were routed through the savings account of the assessee. 4. Savings Bank Account can be used for business purpose only if you have a proprietorship firm/business. For the business transaction you have to open Current Account. 5. During the year under consideration, the assessee was partner of 3 (three) firms and he was not engaged in any proprietorship business/firm. Printed from counselvise.com 14 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. 6. Regarding the Cash Deposit in IDBI Bank as per the written submission/explanation and the Cash Book fumished by the assessee it is seen पिन that, the whole of cash withdrawn from IDBI Bank during the F. Y. 2012-13 has been deposited (cash deposit) in the same bank account. Further, the whole of cash withdrawn during the year is not a onetime cash deposit le excess amount after any expenditure instead the whole of cash withdrawn is deposited in cash part by part without any expense which is abnormal. 7. On perusal of the Ledger Accounts of M/s Pansari Gems International and M/s Pansari Gems Corporation it is seen that the Opening Balance of these two firms as on 01.04.2012 was Rs. 18,73,428.72 and 80,40,003.09 respectively. As for example in spite of having enough fund, on 03.04.2012 an amount of Rs. 2,00,000/- was credited in the SB account of the assessee from M/s Pansari Gem International and the same was transferred out to M/s Pansari Gem Corporation on the same day i.e. fund was transferred from the needy firm. Hence not accepted. 8. The assessee vide show cause notice was asked to explain the credit transaction in his savings bank account. But, in the tabular form the assessee has only explained the debit transactions relating to his partnership firms which are related to the business of the partnership firm. Hence, not acceptable. In view of the above facts and circumstances of the case total credit transaction in his savings bank account amounting to Rs. 3,18,41,574/- including cash deposit amounting to Rs. 15,90,000/-, remained unexplained by the assessee and treated as deemed income of the assessee as unexplained money u/s 69A of the Act and added to the total income of the assessee-company.” The assessment Order is set aside 10. As noticed above, the assessee challenged the assessment order by filing an appeal before Learned CIT(A). Learned CIT(A) partly allowed the Printed from counselvise.com 15 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. appeal, while arriving at the conclusion that the Assessing Officer had not disputed the source of funds utilized by the firms, which was transferred to the assessee, and in the given situation, question of treating said funds, when transferred to the assessee, as unexplained money u/s 69A of the Act, did not arise. 11. Learned CIT(A) also observed that the Assessing Officer had not pointed out any defect in the cash book submitted by the assessee, and further that the cash book having not been disputed in the assessment proceedings, the Assessing Officer arrived at the conclusion on the basis of surmises and without any evidence on record. 12. At this stage, it may be mentioned here that at page 48 of the impugned order, Learned CIT(A) specifically recorded that following facts were undisputed facts:- “1. The assessee, Manav Pansari, is a partner in three firms: M/s Pansari Gems International M/s Pansari Gems Corporation M/s Vinayak Gems Inc. (Refer: Penultimate para on Page 17 of the Assessment Order) 2. There are fund transfers between the above-mentioned firms via the assessee's Savings Bank Account. The funds were first transferred from Printed from counselvise.com 16 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. one firm to the assessee, and then routed to another firm. (Refer: Second para on Page 17 of the Assessment Order) 3. The assessee furnished relevant supporting documents, including: Bank Statements Bank Book Ledger Accounts of all three firms Cash Book (Refer: First para on Page 18 and Second para on Page 14 of the Assessment Order) 4. The Savings Bank Account was used as a conduit for these inter-firm transactions. 5. The assessee also submitted a Cash Book to explain the pattern and justification of cash deposits made into the IDBI Bank account.” 13. In the course of arguments, in this appeal before us, Ld. DR for the appellant has not challenged the abovesaid observations made by Learned CIT(A) that the above said facts are the undisputed facts. 14. It is not in dispute that the supporting documents produced by the assessee during assessment proceedings included bank statements, bank pass books, ledger account of all the above said 3 firms, namely, M/s Pansari Gems International, M/s Pansari Gems Corporation and M/s Vinayak Gems Inc., besides his cash book. Printed from counselvise.com 17 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. 15. There is nothing in the assessment order to suggest that the Assessing Officer disbelieved creditworthiness of the any of the three firms named above. The Assessing Officer also nowhere observed in the assessment order that the funds transferred from the above said 3 firms to the account of the assessee were not explained. Since the assessee had submitted complete books of accounts, during the assessment proceedings, Learned CIT(A) was justified in recording finding that the books of accounts clearly identified the source of funds. In this situation, we find that learned CIT(A) was justified in arriving at the conclusion that when the source of funds were established, movement of the said funds through the above said saving bank account of the assessee did not render the amounts as unexplained money, so as to attract provisions of section 69A of the Act. 16. In the assessment order, the Assessing Officer did not refer to any material to suggest that the funds referred to above actually belonged to the assessee personally or that their source remained unexplained. In this situation, Learned CIT(A) was further justified in observing that provisions of Section 69A of the Act were not at all attracted. Printed from counselvise.com 18 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. Result 17. In view of the above discussion, we do not find any merit in the appeal filed by the department. Consequently, same is hereby dismissed. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 22/12/2025. Sd/- Sd/- ¼vUuiw.kkZ xqIrk½ ¼ujsUnz dqekj½ (ANNAPURNA GUPTA ) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 22/12/2025 *Santosh vkns'k dh izfrfyfivxzsf’kr@Copy of the order forwarded to: 1. The Appellant- DCIT, Jaipur. 2. izR;FkhZ@ The Respondent- Manav Pansari, Jaipur. 3. vk;djvk;qDr@ Theld CIT 4. vk;djvk;qDr@CIT(A) 5. foHkkxh; izfrfuf/k] vk;djvihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 6. xkMZQkbZy@ Guard File ITA No. 1188/JPR/2025) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar Sl. No. Date Initial 1 Date of dictation 22.12.2024 2 Date on which the typed draft is placed before the Dictating Member …22.12.25………… Other Member…22.12.2025…………… 22.12.2025 3 Date on which the approved draft comes to the Sr.P.S./P.S 22.12.25 4 Date on which the fair order is placed before the Dictating Member for pronouncement 22.12.25 Printed from counselvise.com 19 ITA No. 1188/JPR/2025 Manva Pansari, Jaipur. 5 Date on which the fair order comes back to the Sr.P.S./P.S. 22.12.25 6 Date on which the file goes to the Bench Clerk 23.12.25 7 Date on which the file goes to the Head Clerk 8 The date on which the file goes to the Assistant Registrar for signature on the order 9 Date of Dispatch of the Order Printed from counselvise.com "