HARDIK JAGDISHKUMAR THAKKAR,BANASKANTHA V. THE ITO, WARD-3, PALANPUR

ITA 426/AHD/2025

AI Insights

The case involves Hardik Jagdishkumar Thakkar, the appellant, who contested the addition of Rs. 31,02,330 to his income for the Assessment Year 2017-18, which was added by the Income Tax Officer under Section 69A as unexplained money. The addition was confirmed by the Commissioner of Income Tax (Appeals) but was later reversed by the Income Tax Appellate Tribunal. The Tribunal acknowledged that the cash deposits were from the assessee's regular business of trading in namkeen and other products, and thus, should not be considered unexplained.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708535 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2025
• 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: B.P MAKWANA
• 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.426/Ahd/2025 (Assessment Year: 2017-18) Hardik Jagdishkumar Thakkar, Shivaji Park Society, Dhanera, Banaksantha-385310. [PAN :AGYPT5046 R] Vs. Income Tax Officer, Ward-3, Palanpur. (Appellant) .. (Respondent) Appellant by : Shri Jimi Patel, AR Respondent by: Shri B.P Makwana, Sr. DR Date of Hearing 17.07.2025 Date of Pronouncement 18 .07.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 24.12.2024 passed by the Commissioner of Income Tax (Appeals) /National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2017-18. 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. 31,02,330/- 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 ITA No. 426/Ahd/2025 Hardik J Thakkar Vs. ITO Asst. Year : 2017-18 - 2– 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. 3. The addition of Rs.31,02,330/- has been made on account of the cash deposits found in the bank account of the assessee. The revenue alleged that the assessee could not prove the details of the sources of cash deposited in the bank account. It was brought to our notice that the assessee is in the business of namkeen and other small products on a retail as well as whole basis, and the assessee had produced bank statement reflecting the cash deposits from 01.04.2016 to 31.03.2017. There have been cash deposits in the bank account throughout the year, which reflects the regular business of the assessee. The cash deposits have been transferred to suppliers/dealers of namkeen and other products at regular intervals, as evident from the bank statement. Since, the cash deposits are out of the regular trading business of namkeen and other products, we hold no addition is called for on account of unexplained money. 4. In the result, the appeal filed by the assessee is allowed. The order is pronounced in the open Court on 18.07.2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 18.07.2025 MV ITA No. 426/Ahd/2025 Hardik J Thakkar Vs. ITO Asst. Year : 2017-18 - 3– 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 "