HARENDRA MAHENDRABHAI PATEL,VADODARA V. THE DY.CIT, CENTRAL CIRCLE-2, VADODARA

ITA 946/AHD/2025

AI Insights

The case involves Harendra Mahendrabhai Patel, the appellant, contesting an order from the Commissioner of Income Tax (Appeals)-12, Ahmedabad, which confirmed an addition of Rs.3,20,000 to his income for the Assessment Year 2020-2021. This addition was made under section 69A of the Income Tax Act, 1961, due to unexplained foreign currency found during a search at the assessee's premises. The assessee argued that the currency was leftover from various foreign trips and included gifts from children residing overseas. The Tribunal, after considering the evidence and arguments presented, decided in favor of the assessee, leading to the deletion of the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778818 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Appeal Filed On: 30-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: JIGAR ADHYARU
• Keywords: Gift

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “सी“ ,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD \u0016ी संजय गग\u001a, \u0011ाियक सद\u001b एवं \u0016ी मकरंद वसंत महादेवकर, लेखा सद\u001b क े सम!। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member आयकर अपील सं /ITA No.946/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : 2020-21 Harendra Mahendrabhai Patel 1, Krishnadham Society Opp. Maitri Mandir Society Gotrui Road Vadodara 390 021 बनाम/ v/s. The Dy.CIT Central Circle-2 Vadodara – 390 007 \u0013थायी लेखा सं./PAN: AHCPP 3037 B (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Jigar Adhyaru, AR Revenue by : Shri Rignesh Das, CIT-DR सुनवाई की तारीख/Date of Hearing : 07/08/2025 घोषणा की तारीख /Date of Pronouncement: 17/10/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)-12, Ahmedabad dated 27/02/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2020-2021. 2. The issue raised by the assessee in this appeal is regarding confirmation of addition of Rs.3,20,000/- made by the Assessing Officer (AO) u/s.69A of the Act on account of unexplained foreign currency found at the premises of the assessee during the course of search action. The AO made Printed from counselvise.com ITA No. 946/Ahd/2025 Harendra Mahendrabhai Patel vs. DCIT AY : 2020-21 2 the impugned addition of the foreign currency equal to the value of the same in Indian currency. 3. The Ld. Counsel for the assessee has submitted that the small amount of foreign currency found at the premises of the assessee was left out currency out of the various foreign trips made by the assessee. He, in this respect, has relied upon the passport of the assessee. He, this respect, has submitted that the assessee and his family members had gone overseas trip in the year 2010, 2015, 2017 & 2018,. He has given chart of the foreign trips of his father Late Shri Mahendrabhai Chaturbhai Patel, his brother Hemant Kumar Mahendrakumar Patel and of the assessee Hearendra Mahendrabhai Patel,which for the sake of ready reference is reproduced as under: SR. NO. NAME OF COUNTRY YOU TRAVELLED ENÎRŸ EXIT 1 UNITED STATES OF AMERICA (USA) 03-07-2018 25-07-2018 2 UNITED STATES OF AMERICA (USA) 29-07-2018 07-08-2018 3 UNITED STATES OF AMERICA (USA) 11-08-2018 20-08-2028 4 UNITED ARAB EMIRATES (UAE) 23-02-2014 27-02-2014 5 HONG KONG 13-03-2013 16-03-2013 6 MACAU 17-03-2013 19-03-2013 7 AUSTRALIA 19-05-2012 29-05-2012 NEW ZEALAND 29-05-2012 07-06-2012 9 SOUTH AFÀICA 28-05-2014 06-06-2014 10 BHUTAN 20-06-2019 26-06-2019 11 SWITZERLAND 29-05-2015 10-06-2015 12 CANADA 07-08-2018 27-08-2018 13 KENYA 06-06-2014 11-06-2014 14 UNITED KINGDOM (UK) 27-05-2015 11-06-2015 Printed from counselvise.com ITA No. 946/Ahd/2025 Harendra Mahendrabhai Patel vs. DCIT AY : 2020-21 3 PATEL HEMANTKUMAR MAHENDRAKUMAR 1. UNITED STATEES OF AMERICAL (USA) 26-07-2018 09-08-2018 2. UNITED STATEES OF AMERICAL (USA) 12-08-2018 19-08-2018 3. UNITED STATEES OF AMERICAL (USA) 06-04-2009 23-04-20090 4. UNITED STATEES OF AMERICAL (USA) 25-04-2010 18-06-2010 5. SINGAPORE 23-10-2009 25-10-2009 6 SINGAPORE 17-05-2016 24-05-2016 7 CHINA 20-02-1014 25-02-2014 8 THAILAND 17-05-2026 25-05-2016 9 MALAYSIA 19-10-2009 23-10-2009 10 UNITED ARAB EMIRATES (UAE) 13-11-2012 18-11-2012 11. CANADA 16-05-2010 16-05-2010 PATEL MAHENDRAKUMAR HARENDRA 1 SINGAPORE 09-03-2015 06-04-2025 2 SINGAPORE 17-05-2017 24-05-2017 3 THAILAND 17-05-2016 25-05-2016 4 UNITED ARAB EMIRATES (UAE) 17-11-2017 22-11-2017 5 AUSTRALIA 10-03-2015 18-03-2015 3.1. The Ld. Counsel for the assessee also submitted that the children of the assessee are also residing overseas and some amount in foreign currency was also received as gift from them. 4. Considering the smallness of the amount and in view of the above submissions of the assessee, we do not find justification on the part of the lower authorities in making/confirming the addition of aforesaid amount of Printed from counselvise.com ITA No. 946/Ahd/2025 Harendra Mahendrabhai Patel vs. DCIT AY : 2020-21 4 Rs.3,20,000/- treating the same as unexplained income of the assessee. In view of the above, the impugned addition is not sustainable and the same is ordered to be deleted. 5. In the result, the appeal of the assessee stands allowed. Order pronounced in the Open Court on 17 /10/2025. Sd/- Sd/- (Makarand V. Mahadeokar) Accountant Member ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 17 /10/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)-12, Ahmedabad 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद /DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (dictation pad is attached with the file)) : 17.10. 2025 2. Date on which the typed draft is placed before the Dictating Member. : 17.10.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 17.10.2025 7. Date on which the file goes to the Bench Clerk. : 17.10.2025 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : Printed from counselvise.com "