INCOME TAX OFFICER, WARD-1, MEHSANA, MEHSANA V. HEMANTKUMAR FALJIBHAI CHAUDHARY, MEHSANA

ITA 475/AHD/2025

AI Insights

The case involves an appeal by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, which had deleted an addition of Rs. 64,50,000 made by the Assessing Officer (AO) on account of accommodation entries. The AO had alleged that the respondent, Hemantkumar Faljibhai Chaudhary, received accommodation entries from Shri Satyajitsinh Rajendrasinh Gohil, who admitted under oath to providing such entries without any actual business transactions. The Revenue challenged the CIT(A)'s decision to delete this addition. However, the appeal was dismissed at the threshold due to the low tax effect as per the recent CBDT Circular.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775301 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 28-02-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MAMTA SINGH
• Assessee Lawyers: ANIL KSHATRIYA
• Keywords: Tax effect; Accommodation entries

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “सी“, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “ C ” BENCH, AHMEDABAD \u0015ी संजय गग\u001a, \u0011ाियक सद\u001b एवं \u0015ी नरे !साद िस\"ा, लेखा सद\u001b क े सम%। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member आयकर अपील सं /ITA No.475/Ahd/2025 िनधा \u0010रण वष\u0010 /Assessment Year : 2012-13 Income Tax Officer Ward-1 Mehsana – 384 002 बनाम/ v/s. Hemantkumar Faljibhai Chaudhary 126, Sardar Vyapar Sankul Malgodown Mehsana – 384 002 \u0014थायी लेखा सं./PAN: AAQPC 9880 L (अपीलाथ'/ Appellant) (!( यथ'/ Respondent) Assessee by : Shri Anil Kshatriya, AR Revenue by : Smt. Mamta Singh, Sr.DR सुनवाई की तारीख/Date of Hearing : 04/09/2025 घोषणा की तारीख /Date of Pronouncement: 08/09/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 27/12/2024 for Assessment Year (AY) 2012-13. 2. The Revenue has raised the following grounds in this appeal: “(a) The Ld.CIT(A) has erred in law and on facts in deleting the addition of Rs.64,50,000/- made by AO on account of accommodation entries received from Shri Satyajitsinh Rajendrasinh Gohil, Prop. Of Shoryaraj Enterprise, without appreciating that Shri Satyajit R. Gohil has admitted in its statement recorded on Printed from counselvise.com ITA No.475/Ahd/2025 ITO vs. Hemantkumar Faljibhai Chaudhary Asst. Year : 2012-13 2 oath that he is engaged in providing accommodation entry and did no business other than book transactions. (b) The appellant craves leave to add, alter and/or to amend all or any the ground before the final hearing of the appeal. 3. Before going to the merit of the case, the Authorized Representative (AR) for the assessee, at the outset, submitted that tax effect on the disputed total additions is below Rs.60 lakhs, therefore, by virtue of recent CBDT Circular No. 9 of 2024 dated 17.9.2024, Department has been instructed not to file appeal before the Tribunal, where tax effect is below Rs.60 lakhs. This instruction is applicable to the pending cases also. Therefore, the present appeal of the Revenue is liable to be dismissed at the threshold. Per contra, the Departmental Representative (DR) did not dispute applicability of the recent CBDT circular and also tax effect being below Rs.60 lakhs in the assessee case. She, however, left the issue to the Tribunal to pass appropriate order in the matter. 4. After hearing both the sides and after perusal of the above CBDT Instruction, we are of the view that the present appeal of the Revenue falls within the purview of the CBDT Instruction cited (supra). It is not disputed by the Revenue that tax effect on the disputed addition is less than Rs.60 lakhs, and therefore, keeping in view the above CBDT circular and provisions of section 268A of the Income Tax Act, we are of the view that the present appeal of the Revenue deserves to be dismissed. It is accordingly dismissed. However, it is noted that in case on re-verification at the end of the AO, if it can be demonstrated that the tax effect is more, or Revenue’s case falls within the ambit of exceptions provided in the Circular, then the Department will be Printed from counselvise.com ITA No.475/Ahd/2025 ITO vs. Hemantkumar Faljibhai Chaudhary Asst. Year : 2012-13 3 at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect. 5. In the result, appeal of the Revenue is dismissed due to low tax effect. Order pronounced in the Open Court on 08 /09/2025. Sd/- Sd/- ( Narendra Prasad Sinha ) Accountant Member ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 08/09/2025 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)- (NFAC), Delhi 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद/DR,ITAT, Ahmedabad. 6. गाड\u0010 फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (copied mattere) : 08.09.2025 2. Date on which the typed draft is placed before the Dictating Member. : 08.09.2025 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. : 8.9.25 7. Date on which the file goes to the Bench Clerk. : 8.9.25 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 "