KUMARPAL CHANDANMAL SHAH,AHMEDABAD V. THE ITO, WARD-5(3)(4), AHMEDABAD

ITA 519/AHD/2025

AI Insights

The case involves an appeal by Kumarpal Chandanmal Shah against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which had confirmed an addition of Rs. 25,66,000 to the assessee's income for the Assessment Year 2017-18. The addition was initially made by the Assessing Officer due to unexplained cash deposits in the assessee's bank account. The assessee contended that the deposits were receipts from debtors for sales made in the past, a claim supported by detailed submissions and not disputed by the revenue authorities. The Tribunal, after considering the facts and circumstances, decided in favor of the assessee, allowing the appeal and deleting the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780154 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 07-03-2025
• Laws Referred To: Income-Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDHAKAR VERMA
• Assessee Lawyers: NIRAV MALKAN
• Section: 68

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.519/Ahd/2025 (Assessment Year: 2017-18) Kumarpal Chandanmal Shah, 49 Dhanlaxm,I Market, Revdi Bazar, Ahmedabad-380002. [PAN :AELPS4580 A] Vs. The Income Tax Officer, Ward-5(3)(4), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Nirav Malkan, AR Respondent by: Shri Sudhakar Verma, Sr. DR Date of Hearing 06.10.2025 Date of Pronouncement 07.10.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- 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 08.01.2025 relevant to the Assessment Year 2017-18. 2. The assessee has raised the following grounds of appeal: (1) The Learned Commissioner (Appeal) failed to understand the facts and circumstances of the case. Printed from counselvise.com ITA No. 519/Ahd/2025 Asst. Year : 2017-18 - 2– (2) The Learned Commissioner (Appeal) erred in fact and in law in making addition of Rs. 25,66,000/- under Section 68 of the Income-Tax Act. (3) The Learned Commissioner (Appeal) erred in fact and in law in rejecting books of accounts under Section 145(3) of the Income-Tax Act, 1961. (4) Your Appellant preys for appropriate relief on above grounds of appeal. (5) Your Appellant craves leave to add, alter, amend, substitute or withdraw any of the grounds of appeal stated hereinabove. 3. The Assessing Officer made an addition of Rs.25,66,000/- owing to the cash deposited in the bank account. The assessee has furnished detailed submission before the Revenue authorities and explained clearly that the money has been received from the debtors to whom sale have been made in the past. The assessee has also attached the bifurcation amount of Rs.25,66,000/- showing from whom such money has been received along with the outstanding that was received from such parties. These details have not been disputed by the revenue authorities, and no contrary evidence has been brought on record. In view of the specific facts and circumstances of the case, we find merit in the explanation furnished by the assessee. Accordingly, the addition made by the Assessing Officer is deleted, and the appeal of the assessee is allowed. 4. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 07.10.2025. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 07.10.2025 MV Printed from counselvise.com ITA No. 519/Ahd/2025 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 Printed from counselvise.com "