GANGA INDUSTRIES,BHAVNAGAR V. THE DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), AHMEDABAD

CO 1/AHD/2023

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals), which had deleted additions made under section 68 of the Income-tax Act, 1961, concerning unexplained unsecured loans. The Revenue challenged the deletions of two additions: one of Rs. 56,16,135 for an opening balance of unsecured loans, and another of Rs. 17,27,883 for inter-group entries, both alleged to be unexplained. The appeal was dismissed due to the low tax effect, and the assessee's Cross Objection, which was in support of the CIT (A)'s decision, was also dismissed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35456 (ITAT-AHMEDABAD)
• Appeal Type: Cross Objection
• Pronouncement Date: 04-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside; Tax effect

Judgement Text

"xplanatio n IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “ A ” BENCH BEFORE: DR.BRR KUMAR, VICE PRESIDENT And SHRI T.R SENTHIL KUMAR, JUDICIAL MEMBER The D.C.I.T, Central Circle-1(1), Ahmedabad. (Appellant) Vs Ganga Industries, Survey No.159/160, Vill-Malpar, Tak-Gogha Tal. Gogha, Bhavnagar-364006. PAN: AAEFG5748F (Respondent) And C.O No.1/Ahd/2023 In (IT(SS)A No.52/Ahd/2022) Assessment Year 2017-18 Ganga Industries, Survey No.159/160, Vill-Malpar, Tak-Gogha Tal. Gogha, Bhavnagar-364006. PAN: AAEFG5748F (Appellant) Vs The D.C.I.T, Central Circle-1(1), Ahmedabad. (Respondent) Revenue Represented: Shri B.P Srivastav, Sr-DR Assessee Represented: Shri Tushar Hemani,Sr.Advocate with Shri Parimalsinh B Parmar, AR Date of hearing : 04.02.2025 Date of pronouncement : 04.02.2025 आदेश/ORDER PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER This appeal is filed by the Revenue as against the common appellate order dated 25.10.2022 passed by the Commissioner of IT(SS)A No.52/Ahd/2022 Assessment Year 2017-18 IT(SS)A No.52/Ahd/2022 in C.O No.1/Ahd/2023 DCIT vs Ganga Industries Asst.Year 2017-18 Page No.2 Income Tax(Appeals), arising out of the assessment order passed under section 153(A) of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] relating to the Asst. Year 2017-18. The assessee has filed Cross Objection No.1/Ahd/2023 against the Revenue’s appeal. 2. The Revenue has raised the following grounds of appeal: 1. In the fact and on the circumstances of the case and in law, Ld.CIT(A) erred in deleting the addition u/s.68 of Rs.56,16,135/- made on account of unexplained unsecured loans, being opening balance, without appreciating the fact that in the nortarized deed dated 06.12.2016 there was no mention about the opening balance. 2. In the facts and on the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition u/s 68 of Rs. 17,27,883/- made on account of unexplained unsecured loans, being inter-group entries, without appreciating the fact that the addition was made from the entries appeared in the seized excel sheets, which could not be explained by the assessee satisfactorily. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) ought to have upheld the order of the A.O. 4. It is, therefore, prayed that the order of the Ld. CIT(A) be set aside and that of the A.O. be restored to the above extent. 3. At the outset, it has been observed that as per Form No.36 the Tax Effect involved in the above Departmental Appeal is Rs.56,73,253 which is less than the Rs.60,00,000/- and liable to be withdrawn as per the recent CBDT Circular No.09/2024 dated 17.09.2024. The Revenue is at liberty to restore the appeal, in case of any exceptions as mentioned in above Board Circular. Thus, the appeal filed by the Revenue is dismissed due to Low Tax Effect. IT(SS)A No.52/Ahd/2022 in C.O No.1/Ahd/2023 DCIT vs Ganga Industries Asst.Year 2017-18 Page No.3 C.O No.1/Ahd/2023 (in ITA No.1/Ahd/2023) for AY 2017-18 4. The Ld. Sr. Counsel submitted that the Cross Objection is in support of the order passed by the Ld. CIT (A). Thus, the Cross Objection filed by the assessee is hereby dismissed. 5. In the combined result, both the appeal of the Revenue and the Cross Objection of the assessee are hereby dismissed. Order pronounced in the open court on 04.02.2025 Sd/- Sd/- (DR. BRR KUMAR) (T.R. SENTHIL KUMAR) VICE PRESIDENT JUDICIAL MEMBER (True Copy) Ahmedabad : Dated 04.02.2025 Manish आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned Pr.CIT, Ahmedabad-1 4. आयकर आयुᲦ ) अपील ( / The CIT(A)- 5. िवभागीय ᮧितिनिध , आयकर अपीलीय अिधकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाडᭅ फाईल /Guard file. आदेशानुसार/ BY ORDER, स᭜यािपत ᮧित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad "