MAGANBHAI BAHECHARBHAI PATEL,VADODARA V. INCOME TAX OFFICER WARD 1(2)(1), VADODARA

ITA 834/AHD/2025

AI Insights

The case involves Maganbhai Bahecharbhai Patel, the appellant, contesting the decisions made by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, regarding the Assessment Year 2018-19. The primary issues pertained to the treatment of certain amounts as unexplained money and the imposition of penal interest and fees under various sections of the Income Tax Act. The appellant argued that the additions made to his income were unjustified and that the agricultural income should not be taxed. The Tribunal found merit in the appellant's request for a re-evaluation of the case by the CIT(A), leading to the remand of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714281 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRATEEK SHARMA
• Assessee Lawyers: NIRAJ SURTI
• Keywords: Earning of tax free income

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No.834/Ahd/2025 (Assessment Year: 2018-19) Maganbhai Bahecharbhai Patel, CA Akshar Mehta, Partner DKN & Associates, 10-11-12 Buddhadev Complex, Nr. Sevashram Hospital, Sevashram Road, Panchbatti Bharuch-392001. [PAN :DLOPP3563 F] Vs. The Income Tax Officer, Ward-1(2)(1), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Niraj Surti, AR Respondent by: Shri Prateek Sharma, Sr DR Date of Hearing 06.08.2025 Date of Pronouncement 07.08.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 24.02.2025 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2018-19. 2. The assessee has raised the following grounds of appeals: 1. In the facts and circumstances of the case, Ld. CIT(Appeals), NFAC has erred in law and in facts in dismissing the appeal and thereby upholding an addition of Rs. 15,00,000/- u/s 69A as unexplained money which as such is an agricultural income not liable to tax and which deserves to be deleted. Printed from counselvise.com ITA No. 834/Ahd/2025 Maganbhai B Patel Vs. ITO Asst. Year : 2018-19 - 2– 2. In the facts and circumstances of the case, Ld. CIT(Appeals), NFAC has erred in law and in facts in treating the cash deposit of agricultural income of Rs.6,97,860/- already accepted by him as such as unexplained income liable to tax u/s 115BBE. 3. In the facts and circumstances of the case, Id. CIT (Appeals), NFAC has erred in fact and in law in not accepting concept of past savings out of agricultural income and hence, any addition out of past savings needs to be deleted entirely. 4. In the facts and circumstances of the case, Ld. CIT(Appeals), NFAC has erred in law and in facts in levying penal interest u/s 234A of the Act and that it needs to be deleted. 5. In the facts and circumstances of the case, Ld. CIT(Appeals), NFAC has erred in law and in facts in levying fees u/s 234F of the Act and that it needs to be deleted. 6. The appellant craves leave to add, alter, amend, delete and/or modify any or all grounds of this appeal. 3. At the outset, we find that the appeal of the assessee has been dismissed summarily by the Ld. CIT(A). The Ld. Counsel for the assessee pleaded that, given an opportunity due compliances will be made before the Ld.CIT(A). Hence, no prejudice will be caused to the revenue if the matter is remanded to the Ld.CIT(A) for adjudication de-novo. 4. In the result, the appeal filed by the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 07.08.2025. Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 07.08.2025 MV Printed from counselvise.com ITA No. 834/Ahd/2025 Maganbhai B Patel Vs. ITO Asst. Year : 2018-19 - 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 "