Brijeshkumar Mahendrabhai Patel, Ahmedabad V. The ITO, Patan Ward-5, Mehsana

ITA 903/AHD/2019

AI Insights

The case revolves around an appeal by Brijeshkumar Mahendrabhai Patel against the order of the CIT(A), Gandhinagar, which confirmed the disallowance of Rs. 8,51,000 as unexplained cash credits for the assessment year 2010-11. The Assessing Officer had initially made this addition under Section 68 of the Income Tax Act after the assessee failed to respond to notices and did not file his return of income. The Tribunal, upon reviewing the submissions and evidence provided, including the explanation of the source of the cash deposits and the agricultural bills submitted, concluded that the deposits were from legitimate sources and allowed the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299992 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-01-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 22-05-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Gift
• Section: 68; 148; 271(1)(c); 144; 142(1); 48

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . No .9 03 /A h d / 20 19 ( A s se ss m e nt Y e a r : 20 10- 11 ) B rij e s h ku m a r M a he nd r a b h a i Pa tel C - 4 0 3, Vi s h n u dh ar a H o m es , Nr . V od af on e To we r , Go ta , Ah me da bad - 3 82 48 1 V s . I T O War d - 5 , Pa t an [P AN N o.A R R P P 48 54 B] (Appellant) .. (Respondent) Appellant by : None Respondent by: Shri Ramesh Kumar, JCIT D a t e of H ea r i ng 31.01.2023 D a t e of P r o no u n ce me nt 10.02.2023 O R D E R The appeal filed by the assessee is against the order passed by the Ld. CIT(Appeals), Gandhinagar, Ahmedabad on 05.03.2019 for A.Y. 2010-11. 2. The grounds of appeal raised by the assessee are as under: “1. Ld. CIT(A) erred in law and on facts in confirming disallowance on account of unexplained cash credits to the extent of Rs. 8,51,000/-. The Ld. CIT(A) ought to have considered the fact that the aforementioned cash deposits were made out on income earned from graphic designing and out of gift received from the father. Therefore, the cash deposits were out of genuine sources and there was no malafide intention of the appellant to escape income. The Ld. CIT(A) ought to have considered the above facts and should have deleted the disallowance. It so be held now. 2. Levy of interest u/s 234A, 234B, 234C and 234D of the Act is not justified. 3. Initiation of penalty proceedings u/s 271(1)(b), 271(1)(c) and section 271F of the Act is not justified. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any grounds of appeal at the time of or before the hearing of the appeal.” 3. As per the AIR information during the year under consideration the Assessing Officer observed that the assessee deposited more than 10 lakh in the saving account maintained with State Bank of India. Subsequently, notice under Section 148 was issued on 30.03.2017. The assessee neither ITA No. 903/Ahd/2019 Brijesh Mahendrabhai Patel vs. ITO Asst.Year–2010-11 - 2 - filed his original return of income and also not filed return of income in response to the notice under Section 148 of the Act. Thereafter, further notices were issued under Section 142(1) but none appeared before the Assessing Officer and therefore, the Assessing Officer finalized the assessment under Section 144 and made addition of Rs. 11,01,000/- under Section 68 as unexplained cash credit. 4. Being aggrieved by the assessment order the assessee appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. At the time of hearing none appeared on behalf of the assessee despite giving notice which was duly received by the assessee and the acknowledgement card is there on record of the file before the Tribunal. Hence, we are proceeding on the basis of the submissions made by the assessee before the CIT(A) which are extracted in the order of the CIT(A). 6. The Ld. D.R. relied upon the assessment order and the order of the CIT(A). 7. Heard the Ld. D.R. and perused all the relevant material available on record. It is pertinent to note that the assessee’s father has given sum of Rs. 2,03,500/- on different date out of his personal saving which was never controverted. The said relief was granted but as relates to the remaining cash credits/the cash deposit of Rs. 8,51,000/- the assessee has given the explanation that Maternal Uncle of the assessee has given the said amount to the assessee from the agricultural produce and some of the bills of agricultural produce were submitted before the CIT(A). The assessee took ITA No. 903/Ahd/2019 Brijesh Mahendrabhai Patel vs. ITO Asst.Year–2010-11 - 3 - this sum for his further studies in United Kingdom and therefore, it appears that the cash deposits in assessee’s account was genuine and therefore, the CIT(A) was not right in confirming the addition to the extent of Rs. 8,51,000/-. Hence, the appeal of the assessee is allowed. 8. In result, the appeal of the assessee is allowed. This Order pronounced in Open Court on 10/02/2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 10/02/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 09.02.2023 2. Date on which the type draft is placed before the Dictating Member 09.02.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S .02.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .02.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S 10.02.2023 7. Date on which the file goes to the Bench Clerk 10 .02.2023 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..........................................