MAHENDRA MANILAL SHAH,AHMEDABAD V. THE ITO, WARD-3(3)(3), AHMEDABAD

ITA 1308/AHD/2025

AI Insights

The case involves Mahendra Manilal Shah, the appellant, contesting an addition of Rs.63,75,000 made by the Assessing Officer (AO) for the Assessment Year 2012-13, which was upheld by the Commissioner of Income Tax (Appeals). The addition was based on a third-party statement alleging unexplained cash payments. The appellant argued that the CIT(A) erred in law and on facts by confirming the addition without substantial evidence. The Tribunal noted that the appellant had multiple opportunities to present his case but failed to provide necessary details or explanations. In the interest of justice, the Tribunal decided to set aside the CIT(A)'s order and remand the case for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791841 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 11-06-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAMAL DEEP SINGH
• Assessee Lawyers: K C THAKER
• Keywords: Set aside; Third party statement; Opportunity of cross examination

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.1308/Ahd/2025 (Assessment Year: 2012-13) Mahendra Manilal Shah, B-122, Reviera Heights, Nr. Ishaan, 3, Prahladnagar Road, Satellite, Ahmedabad-380015. [PAN :AAIPS6527 Q] Vs. The Income Tax Officer, Ward-3(3)(3), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri K C Thaker, AR Respondent by: Shri Kamal Deep Singh, Sr. DR Date of Hearing 08.12.2025 Date of Pronouncement 12.12.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned This appeal is filed by the Assessee against the appellate order dated 10.08.2024 passed by the Commissioner of Income Tax (Appeals)National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2012-13. 2. The assessee has raised the following grounds of appeal: 1. The learned CIT(A) has erred in law and on facts in confirming the addition of Rs.63,75,000/- made by the AO based only on third party statement and without any material brought on record to Printed from counselvise.com ITA No. 1308/Ahd/2025 Asst. Year : 2012-13 - 2– discharge his onus that the appellant has made any such unexplained cash payment. 2. The learned CIT(A) has also erred in law and on facts in not deciding the appeal based on merits considering lack of evidence to justify the addition, by ignoring the specific submissions made in paragraph 4 of the statement of facts thereby wrongly confirming the addition of Rs.63,75,000/- 3. On the facts and in the circumstances of the case and in law the learned CIT(A) ought to have deleted the addition of Rs.63,75,000/- 4. It is therefore prayed that the orders of the lower authorities making/upholding the addition of Rs.63,75,000/- may be cancelled. 5. Your appellant craves leave to add, amend, alter or withdraw any ground of appeal at the time of hearing. 3. On perusal of the records, it is observed that the assessee was afforded several opportunities of hearing on 25.01.2021, 20.05.2024, 31.05.2024 & 18.07.2024 to furnish details, clarifications, and explanations to substantiate the source of cash payment of Rs.63,75,000/-. However, despite being granted multiple opportunities, the assessee failed to furnish the requisite details or explanations before the Ld. CIT(A). Consequently, the Ld. CIT(A), based on the material available on record, upheld the action of the Assessing Officer and dismissed the appeal of the assessee. Before us, the Ld. Counsel for the assessee prayed that, given an opportunity, all necessary details, clarifications, and explanations would be furnished to the Revenue authorities. Hence, in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the matter to the file of the Ld.CIT(A) for de novo adjudication. The assessee shall submit all the relevant bank Printed from counselvise.com ITA No. 1308/Ahd/2025 Asst. Year : 2012-13 - 3– statement/submission/document before the Ld.CIT(A) and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. 4. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 12.12.2025. S Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 12.12.2025 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 "