MANAN KIRITBHAI SHAH,AHMEDABAD V. THE INCOME TAX OFFICER, WARD-5(2)(1), AHMEDABAD

ITA 1159/AHD/2024

AI Insights

The case involves an appeal by Manan Kiritbhai Shah against the order of the Commissioner of Income-tax (Appeals), which confirmed the addition of unexplained cash deposits during the demonetization period as unexplained investment under Section 69A of the Income-tax Act, 1961. The Assessing Officer had initially determined a total income significantly higher than the returned income due to unexplained cash deposits. The CIT(A) partially relieved the Assessee by deleting some of the additions but confirmed the rest due to insufficient evidence regarding the source of the deposits. The Tribunal, after considering the family size and typical cash holdings, allowed a partial relief of Rs.8 lakhs.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 25788 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 26-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 28-05-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NEEJU GUPTA
• Keywords: Unexplained investment
• Section: 250; 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT I.T.A. No. 1159/Ahd/2024 (Assessment Year: 2017-18) Manan Kiritbhai Shah, C/268, Bhavna Apartment, Vasna Barrage Road, Vasna, Ahmedabad-380007 PAN : DKPPS 0823 B Vs. Income-Tax Officer, Ward 5(2)(1), Ahmedabad (Appellant) .. (Respondent) Appellant by : None Respondent by: Ms. Neeju Gupta, Sr DR Date of Hearing 26.11.2024 Date of Pronouncement 29.11.2024 O R D E R This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as \"CIT(A)\" for short), dated 22.03.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\" for short], for Assessment Year (AY) 2017-18. 2. The solitary issue raised by the Assessee is as under:- “The Ld CIT(A) has erred in law and on facts, while passing order u/s 250 of the Act dated 22.03.2024 for AY 2017-18 regarding cash deposits during demonetization period by treating the same as unexplained investment under Section 69A of the Income-tax Act, 1961.” ITA No. 1159/Ahd/2024 Manan Kiritbhai Shah Vs. ITO Asst. Year : 2017-18 - 2– 3. In this case, the assessment order has been passed by the ITO, Ward 5(2)(1), Ahmedabad on 17.12.2019 determining total income of Rs.19,63,683/- against the returned income of Rs.1,66,000/- on account of unexplained cash deposited in the bank accounts. The ld. CIT(A) deleted the addition of Rs.7,76,663/- as the amount pertains to some other person. With regard to the remaining amount of Rs.10,21,000/-, the assessee submitted that the amount of Rs.5,20,000/- in the Bank of Baroda and Rs.5,01,000/- in the SBI are out of personal savings of the family members consisting of father, mother, son, sister and niece. The ld. CIT(A) held that the assessee failed to furnish documentary evidences with regard the occupations of the family members and confirmed the addition. Having gone through the record before us and the family size consisting of mother, father and son who do not have any separate bank accounts, an amount of Rs.8 lakhs can be fairly considered as belonging to the family members as cash in hand. Hence, the Assessing Officer is hereby directed to accord the benefit of Rs.8 lakhs. 4. In the result, the appeal of the Assessee is partly allowed The order is pronounced in the open Court on 29.11.2024 Sd/- (DR. B.R.R. KUMAR) VICE-PRESIDENT Ahmedabad; Dated 29/11/2024 btk ITA No. 1159/Ahd/2024 Manan Kiritbhai Shah Vs. ITO Asst. Year : 2017-18 - 3– आदेश की \u0007ितिलिप अ\rेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b\tथ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड\u001f फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation …28.11.2024….. 2. Date on which the typed draft is placed before the Dictating Member …28.11.2024 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S ……28.11.2024………. 5. Date on which the fair order is placed before the Dictating Member for pronouncement …29.11.24.. 6. Date on which the fair order comes back to the Sr.P.S./P.S …29.11.2024………………. 7. Date on which the file goes to the Bench Clerk ……29.11.2024….…. 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 Dispatch of the Order…………………………………… "