HASMUKH NATVARLAL SHAH,AHMEDABAD V. THE ITO, WARD-4(2)(1), AHMEDABAD

ITA 170/AHD/2025

AI Insights

The case involves Hasmukh Natvarlal Shah, who appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which confirmed the additions made by the Assessing Officer. The additions included unexplained investment amounting to Rs. 6,27,795 under section 69 of the Income Tax Act, 1961, and an estimated income of Rs. 6,81,562 on receipts at a profit rate of 30%. The Tribunal found that the contractual receipts had possibly been taxed in a partnership firm and directed a re-examination of this matter. Additionally, the Tribunal ordered that the assessee be given a chance to explain the source of the investments in fixed deposits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780629 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 24-01-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDHAKAR VERMA
• Assessee Lawyers: MEHUL PATEL
• Keywords: Unexplained investment; TDS
• Section: 69

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.170/Ahd/2025 (Assessment Year: 2011-12) Hasmukh Natvarlal Shah, 493/21, Satyagrah Chhavni Soc. Jodhpur Tekra, Ahmedabad-380015. [PAN :AEJPS3775 B] Vs. The Income Tax Officer, Ward-4(2)(1), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Mehul Patel, AR Respondent by: Shri Sudhakar Verma, Sr. DR Date of Hearing 07.10.2025 Date of Pronouncement 08.10.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, vide order dated 20.05.2023 relevant to the Assessment Year 2011-12. 2. The assessee has raised the following grounds of appeal: 1. That on facts, and in law, the learned CIT (appeal) NFAC Income Tax Department has grievously erred in confirming the addition of unexplained investment amounting of Rs. 6,27,795/- u/s 69 of the Act. Printed from counselvise.com ITA No. 170/Ahd/2025 Asst. Year : 2011-12 - 2– 2. That on facts, and in law, the learned NFAC and grievously erred in confirming the Of Rs AO has receipts and estimating 30% Income 6,81,562/- on receipts 3. Your appellant craves leave to add/alter or amend any of the grounds till the appeal is finally heard and decided. 3. The brief facts case are that during the course of assessment proceedings, it was noticed that assessee had received an amount of Rs. 22,71,874/- as contractual receipt on which TDS had deducted and assessee has not shown any such income in the return filed. The Assessing Officer, therefore, rejected the books of account u/s.245A and made the additions of Rs.6,81,562/- on account of profit @ 30% of the gross receipt. Further, an addition of Rs.6,27,795/- was made u/s. 69 of the Income Tax Act, 1961 on account of unexplained investment. 4. Aggrieved against the Assessment Order, the assessee filed appeal before the Ld. CIT(A), who dismissed the appeal of the assessee. 5. Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal. 6. We have carefully considered the rival submissions and perused the material on record. The assessee has submitted that the contractual receipts in question have already been offered to tax in the partnership firm. The jurisdictional Assessing Officer is, therefore, directed to verify the same. With respect to the addition relating to unexplained investment in fixed deposits, the Assessing Officer is directed to provide an opportunity to the assessee to explain the source thereof. Printed from counselvise.com ITA No. 170/Ahd/2025 Asst. Year : 2011-12 - 3– 7. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 08.10.2025. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 08.10.2025 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 "