MR. BHAUSAHEB B PANSARE,KALYAN V. ITO WARD-3(1), KALYAN

ITA 5931/MUM/2025

AI Insights

This case involves an appeal by Mr. Bhausaheb B. Pansare against the order of the Commissioner of Income-Tax (Appeals) - National Faceless Appeal Centre, which confirmed the addition of Rs. 52,87,240 under section 69C of the Income Tax Act, 1961. The addition was initially made by the Assessing Officer (AO) based on large cash payments towards credit card purchases. The assessee contended that these transactions were not made by him but by a third party, Shri Yogesh Abhimanyu Karbhari, to whom he had lent his credit card. The Tribunal found that the matter required further investigation to verify the source of the cash deposits used for these transactions and remanded the case back to the AO for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 789800 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 26-09-2025
• Other Referred Cases: Sumati Dayal Vs CIT [1995] 80 Taxmann 89 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AAFAQUI
• Assessee Lawyers: MADHUR AGARWAL
• Keywords: Set aside; Opportunity of being heard; Additional evidence; Business expenditure; Salary income
• Section: 143(3); 131; 133(6); 69C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAJ KUMAR CHAUHAN (JUDICIAL MEMBER) ITA No. 5931/MUM/2025 Assessment Year: 2023-24 Mr. Bhausaheb B. Pansare, A1/102, PinakPawanVatika, Near Don Bosco School, Adharwadi, Kalyan (W) – 421301. Vs. AO, NFAC, ITO Ward – 3 (1) 2nd Floor, Rani Mansion, Murbad Road, Kalyan - 421301. PAN NO. AHCPP2192D Appellant Respondent Assessee by : Shri Madhur Agarwal Revenue by : Shri Leyaqat Ali Aafaqui, Sr. A.R. Date of Hearing : 26/11/2025 Date of pronouncement : 26/11/2025 ORDER This appeal by the Assessee is directed against the order dated 31st July, 2025 passed by the Ld. Commissioner of Income-Tax (Appeals)-National Faceless Appeal Centre, Delhi (in short the Ld. CIT (A)), for Assessment Year 2023-24, raising following grounds:- “GROUND NO. 1: The Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to as the CIT(A)NFAC] erred in Printed from counselvise.com confirming the addition of Rs. 52,87,240/ section 69C of the Act. The Appellant submits that the CIT(A) confirmed the said addition made by the AO without ap sufficiently explained with supporting documentary evidences and third-party undertaking/confirmations to prove the genuinity of his claim that the said credit card transactions aggregating to Rs. 52,87,240/- of his close friend to whom he had lent his credit card, thereby discharging the onus cast upon the Appellant. The Appellant therefore prays that the AO be directed to carry out a proper investigation the claim made by the Appellant denying the fact that the credit card transactions were carried out by him and were in fact carried out by the Third Party who has admitted to the use of the Appellant's credit card for carrying out his business requirements. 2. The brief facts, as culled out from the record, are that the assessee filed his return of income for the year under consideration on 12 July 2023, declaring a total income of ₹10,55,110/-. The return was selected for scrutiny under the Computer Aided Scrutiny Selection (CASS) for the purpose of examining “large cash payments made towards credit card purchases”. Statutory notices prescribed under the Income tax Act, 1961 (“the Ac confirming the addition of Rs. 52,87,240/- made by the AO under section 69C of the Act. The Appellant submits that the CIT(A) confirmed the said addition made by the AO without appreciating the fact that the Appellant had sufficiently explained with supporting documentary evidences and party undertaking/confirmations to prove the genuinity of his claim that the said credit card transactions aggregating to Rs. were not carried out by him but were carried out by one of his close friend to whom he had lent his credit card, thereby discharging the onus cast upon the Appellant. The Appellant therefore prays that the AO be directed to carry out a proper investigation into the matter and satisfy himself as regards the claim made by the Appellant denying the fact that the credit card transactions were carried out by him and were in fact carried out by the Third Party who has admitted to the use of the Appellant's credit card for carrying out his business requirements. The brief facts, as culled out from the record, are that the assessee filed his return of income for the year under consideration on 12 July 2023, declaring a total income of . The return was selected for scrutiny under the Computer Aided Scrutiny Selection (CASS) for the purpose of examining “large cash payments made towards credit card purchases”. Statutory notices prescribed under the Income tax Act, 1961 (“the Act”) were duly issued and complied with. ITA No. 5931/MUM/2025 2 Mr. Bhausaheb B. Pansare made by the AO under The Appellant submits that the CIT(A) confirmed the said addition preciating the fact that the Appellant had sufficiently explained with supporting documentary evidences and party undertaking/confirmations to prove the genuinity of his claim that the said credit card transactions aggregating to Rs. not carried out by him but were carried out by one of his close friend to whom he had lent his credit card, thereby The Appellant therefore prays that the AO be directed to carry out a into the matter and satisfy himself as regards the claim made by the Appellant denying the fact that the credit card transactions were carried out by him and were in fact carried out by the Third Party who has admitted to the use of the Appellant's credit The brief facts, as culled out from the record, are that the assessee filed his return of income for the year under consideration on 12 July 2023, declaring a total income of . The return was selected for scrutiny under the Computer Aided Scrutiny Selection (CASS) for the purpose of examining “large cash payments made towards credit card purchases”. Statutory notices prescribed under the Income- t”) were duly issued and complied with. Printed from counselvise.com 2.1 During the assessment proceedings, the assessee submitted that he was employed as a Headmaster with MadhyamikVidhyalaya, Sapad derived income from salary, commission from LIC, and other sources such as bank interest. Upon examination of information available on the Insight Portal, the Assessing Officer noted significant payments other modes—towards three credit cards held in the name of the assessee. The details o the Assessing Officer, were as under: Sr. No. 1. 2. INDUSIND BANK LTD. 3. SBI CARD AND PAYMENT 2.2 In response, the assessee categorically asserted that the impugned credit him. He explained that he had handed over the said credit cards to one Shri Yogesh Abhimanyu Karbhari and associate, who was carrying on fabrication business as a sole proprietor under the name Engineering Works During the assessment proceedings, the assessee submitted that he was employed as a Headmaster with MadhyamikVidhyalaya, Sapad, Kalyan, District Thane, and derived income from salary, commission from LIC, and other sources such as bank interest. Upon examination of information available on the Insight Portal, the Assessing Officer noted significant payments—both in cash and through towards three credit cards held in the name of the assessee. The details of such payments, as recorded by the Assessing Officer, were as under: Name of the Bank Amount ICICI BANK LTD. Rs. 18,88,000/ INDUSIND BANK LTD. Rs. 19,23,100/ SBI CARD AND PAYMENT SERVICES LTD. Rs. 14,76,140/ Total Rs. 52, 87, In response, the assessee categorically asserted that the impugned credit-card transactions were not undertaken by him. He explained that he had handed over the said credit Shri Yogesh Abhimanyu Karbhari and associate, who was carrying on fabrication business as a sole proprietor under the name M/s Harsh Fabrication and Engineering Works. It was submitted that the credit cards ITA No. 5931/MUM/2025 3 Mr. Bhausaheb B. Pansare During the assessment proceedings, the assessee submitted that he was employed as a Headmaster with , Kalyan, District Thane, and derived income from salary, commission from LIC, and other sources such as bank interest. Upon examination of information available on the Insight Portal, the Assessing both in cash and through towards three credit cards held in the name of f such payments, as recorded by Amount Rs. 18,88,000/- Rs. 19,23,100/- Rs. 14,76,140/- Rs. 52, 87, 240/- In response, the assessee categorically asserted that the card transactions were not undertaken by him. He explained that he had handed over the said credit Shri Yogesh Abhimanyu Karbhari, a close friend and associate, who was carrying on fabrication business as a M/s Harsh Fabrication and . It was submitted that the credit cards Printed from counselvise.com were utilised exclusively for the business expenses and purchases of Shri Karbhari, and that the corresponding payments towards the credit by him. The assessee emphasised that, having regard to his financial capacity, it was wholly improbable for him to incur expenditure of such magnitude. 2.3 The assessee stated that the credit cards had been handed over in good faith to assist his friend in running his business. In support of his explanation, he furnished the credit payment statements, bank pay undertaking/confirmati own bank statements. He further submitted a detailed explanation regarding the manner and quantum of deposits made into each of the three credit tabulated by the Assessing Officer Sr. No. Name the credit card 1 IndusInd Bank Ltd. 2 ICICI Bank 3 SBI Card were utilised exclusively for the business expenses and es of Shri Karbhari, and that the corresponding payments towards the credit-card accounts were also made by him. The assessee emphasised that, having regard to his financial capacity, it was wholly improbable for him to incur expenditure of such magnitude. The assessee stated that the credit cards had been handed over in good faith to assist his friend in running his business. In support of his explanation, he furnished the credit payment statements, bank pay-in slips, a written undertaking/confirmation from Shri Karbhari, as well as his own bank statements. He further submitted a detailed explanation regarding the manner and quantum of deposits made into each of the three credit-card accounts, which was tabulated by the Assessing Officer as under: Name of the credit card Cash deposit (Rs.) Amounts credited through online mode expenses incurred IndusInd Bank Ltd. 19,93,600 NIL ICICI Bank Ltd. 18,84,300 NIL 18,84,300 SBI Card NIL 13,77,140 ITA No. 5931/MUM/2025 4 Mr. Bhausaheb B. Pansare were utilised exclusively for the business expenses and es of Shri Karbhari, and that the corresponding card accounts were also made by him. The assessee emphasised that, having regard to his financial capacity, it was wholly improbable for him to incur The assessee stated that the credit cards had been handed over in good faith to assist his friend in running his business. In support of his explanation, he furnished the credit-card in slips, a written on from Shri Karbhari, as well as his own bank statements. He further submitted a detailed explanation regarding the manner and quantum of deposits card accounts, which was Business expenses incurred by the third party (Rs.) 19,93,600 18,84,300 13,77,140 Printed from counselvise.com 2.4 During the course of the assessment proceedings, in order to verify the explanation furnished by the assessee, the Assessing Officer issued a notice under section 133(6) of the Act to Shri Yogesh Abhimanyu Karbhari available in his PAN database, i.e., However, no response was received to the said statutory requisition. The Assessing Officer also observed that the assessee’s salary account had been utilised for transacti relating to the business concerns of and Engineering Works 2.5 In the absence of any confirmation or supporting material from Shri Karbhari, the Assessing Officer held that the assessee had failed to substantiate the genuineness of credit-card transactions in question. Accordingly, the deposits aggregating to credit cards were treated as unexplained, and the same were brought to tax as unexplained money under the provisions of the Act. The asse section 143(3) of the Act vide order dated 19 March 2025. 3. In the appeal before the learned CIT(A), the assessee contended that the notice issued under section 133(6) of the Act to Shri Yogesh Abhimanyu Karbhari was di During the course of the assessment proceedings, in order to verify the explanation furnished by the assessee, the Assessing Officer issued a notice under section 133(6) of the Act to Shri Yogesh Abhimanyu Karbhari at the e available in his PAN database, i.e., [e-mail] However, no response was received to the said statutory requisition. The Assessing Officer also observed that the assessee’s salary account had been utilised for transacti relating to the business concerns of M/s Harsh Fabrication and Engineering Works. In the absence of any confirmation or supporting material from Shri Karbhari, the Assessing Officer held that the assessee had failed to substantiate the genuineness of card transactions in question. Accordingly, the deposits aggregating to ₹52,87,240/- made towards the three credit cards were treated as unexplained, and the same were brought to tax as unexplained money under the provisions of the Act. The assessment was thereafter completed under section 143(3) of the Act vide order dated 19 March 2025. In the appeal before the learned CIT(A), the assessee contended that the notice issued under section 133(6) of the Act to Shri Yogesh Abhimanyu Karbhari was di ITA No. 5931/MUM/2025 5 Mr. Bhausaheb B. Pansare During the course of the assessment proceedings, in order to verify the explanation furnished by the assessee, the Assessing Officer issued a notice under section 133(6) of the at the e-mail address [e-mail]. However, no response was received to the said statutory requisition. The Assessing Officer also observed that the assessee’s salary account had been utilised for transactions M/s Harsh Fabrication In the absence of any confirmation or supporting material from Shri Karbhari, the Assessing Officer held that the assessee had failed to substantiate the genuineness of the card transactions in question. Accordingly, the made towards the three credit cards were treated as unexplained, and the same were brought to tax as unexplained money under the provisions of ssment was thereafter completed under section 143(3) of the Act vide order dated 19 March 2025. In the appeal before the learned CIT(A), the assessee contended that the notice issued under section 133(6) of the Act to Shri Yogesh Abhimanyu Karbhari was dispatched by Printed from counselvise.com the Faceless Assessment Unit to the e in his PAN database, which, according to the assessee, was obsolete and no longer in use. It was urged that the notice ought to have been sent to the e Shri Karbhari’s most recent return of income. It was further submitted that, assuming there was no response to the notice under section 133(6), the Faceless Assessing Officer was empowered to ensure verification by invoking section 131 of the Act and issuing su 3.1 In support of the explanation regarding the utilisation of the credit cards, the assessee furnished before the learned CIT(A) a copy of the income A.Y. 2023-24, a copy of the Udyam Registration Certificate of Harsh Fabrication & Engineering Works certificate issued by the educational institution of the assessee stating that, in his capacity as a Headmaster, he was not permitted to engage in business activities. It was asserted that the cash deposit to Shri Karbhari and were duly reflected in his books of account, and that the assessee had merely facilitated the use of his credit cards out of goodwill.The learned CIT(A), however, rejected the explanation furnished by the observing as under: the Faceless Assessment Unit to the e-mail address reflected in his PAN database, which, according to the assessee, was obsolete and no longer in use. It was urged that the notice ought to have been sent to the e-mail address furnished in Karbhari’s most recent return of income. It was further submitted that, assuming there was no response to the notice under section 133(6), the Faceless Assessing Officer was empowered to ensure verification by invoking section 131 of the Act and issuing summons. In support of the explanation regarding the utilisation of the credit cards, the assessee furnished before the learned CIT(A) a copy of the income-tax return of Shri YogeshKarbhari for 24, a copy of the Udyam Registration Certificate of arsh Fabrication & Engineering Works, as well as a certificate issued by the educational institution of the assessee stating that, in his capacity as a Headmaster, he was not permitted to engage in business activities. It was asserted that the cash deposits represented funds belonging to Shri Karbhari and were duly reflected in his books of account, and that the assessee had merely facilitated the use of his credit cards out of goodwill.The learned CIT(A), however, rejected the explanation furnished by the observing as under: ITA No. 5931/MUM/2025 6 Mr. Bhausaheb B. Pansare mail address reflected in his PAN database, which, according to the assessee, was obsolete and no longer in use. It was urged that the notice mail address furnished in Karbhari’s most recent return of income. It was further submitted that, assuming there was no response to the notice under section 133(6), the Faceless Assessing Officer was empowered to ensure verification by invoking section 131 of In support of the explanation regarding the utilisation of the credit cards, the assessee furnished before the learned CIT(A) tax return of Shri YogeshKarbhari for 24, a copy of the Udyam Registration Certificate of , as well as a certificate issued by the educational institution of the assessee stating that, in his capacity as a Headmaster, he was not permitted to engage in business activities. It was s represented funds belonging to Shri Karbhari and were duly reflected in his books of account, and that the assessee had merely facilitated the use of his credit cards out of goodwill.The learned CIT(A), however, rejected the explanation furnished by the assessee, Printed from counselvise.com “5.2.3 The submission of the appellant is not acceptable on merit. It is pertinent to mention here that the confirmation cum undertaking was also submitted to the AO. To verify the same, the AO issued notice u/s 133(6) to Shri response was received. Further, it was noted by the AO that the salary account of the appellant was also being used for transactions done by M/s Harsh fabrication and engineering works which did not commensurate as t using a salaried employee's bank account as well as credit card payment and not its own bank account for its business activities. The contention of appellant does not pass the test of human probability as cited by Hon'ble Apex Court in case of SumatiDayal Vs CIT [1995] 80 Taxmann 89 (SC) as no prudent person would give credit card or bank accounts to a third party for his business activities. Even if the appellant's contention is to be taken correct then also the submission of the appellant is not acceptable. The payments towards credit card transactions have been made in cash. The appellant has been unable to explain the source of pa made in cash. Merely submitting undertaking and copy of ITR does not prove the source of payments made towards credit card in cash.” 4. Before us, the learned counsel for the assessee placed on record a Paper Book comprising pages 1 to 87. He drew our attention to the statements of the IndusInd Bank credit card, ICICI Bank credit card, and SBI credit card, which are placed The submission of the appellant is not acceptable on merit. It is pertinent to mention here that the confirmation cum undertaking was also submitted to the AO. To verify the same, the AO issued notice u/s 133(6) to Shri Yogesh Abhimanyu Karbhari. However, no response was received. Further, it was noted by the AO that the salary account of the appellant was also being used for transactions done by M/s Harsh fabrication and engineering works which did not commensurate as to how a proprietorship business undertaking using a salaried employee's bank account as well as credit card payment and not its own bank account for its business activities. The contention of appellant does not pass the test of human probability as cited by Hon'ble Apex Court in case of SumatiDayal Vs CIT [1995] 80 Taxmann 89 (SC) as no prudent person would give credit card or bank accounts to a third party for his business Even if the appellant's contention is to be taken correct then also the submission of the appellant is not acceptable. The payments towards credit card transactions have been made in cash. The appellant has been unable to explain the source of pa made in cash. Merely submitting undertaking and copy of ITR does not prove the source of payments made towards credit card in Before us, the learned counsel for the assessee placed on record a Paper Book comprising pages 1 to 87. He drew our attention to the statements of the IndusInd Bank credit card, ICICI Bank credit card, and SBI credit card, which are placed ITA No. 5931/MUM/2025 7 Mr. Bhausaheb B. Pansare The submission of the appellant is not acceptable on merit. It is pertinent to mention here that the confirmation cum undertaking was also submitted to the AO. To verify the same, the AO issued notice Yogesh Abhimanyu Karbhari. However, no response was received. Further, it was noted by the AO that the salary account of the appellant was also being used for transactions done by M/s Harsh fabrication and engineering works which did not o how a proprietorship business undertaking using a salaried employee's bank account as well as credit card payment and not its own bank account for its business activities. The contention of appellant does not pass the test of human probability as cited by Hon'ble Apex Court in case of SumatiDayal Vs CIT [1995] 80 Taxmann 89 (SC) as no prudent person would give credit card or bank accounts to a third party for his business Even if the appellant's contention is to be taken correct then also the submission of the appellant is not acceptable. The payments towards credit card transactions have been made in cash. The appellant has been unable to explain the source of payments made in cash. Merely submitting undertaking and copy of ITR does not prove the source of payments made towards credit card in Before us, the learned counsel for the assessee placed on record a Paper Book comprising pages 1 to 87. He drew our attention to the statements of the IndusInd Bank credit card, ICICI Bank credit card, and SBI credit card, which are placed Printed from counselvise.com at pages 34 to 74 of the Paper Book. He further invited our attention to the cash deposit pay deposits made available at pages 24 to 33. The learned counsel also relied upon the undertaking/confirmation furnished by Shri Yogesh Abhimanyu Karbhari acknowledging that the impugned credit-card transactions were carried out by purposes of his fabrication business. 4.1 It was submitted that the source of the cash deposits stood duly explained through the said confirmation and supporting documents, and that the non under section 133(6) occur communication was sent to an e longer operative. In these circumstances, the learned counsel urged that, in the interest of justice, the matter may be restored to the file of the Assessing Officer for a proper verification of the source of the cash deposits appearing in the assessee’s credit 4.2 The learned Departmental Representative, however, submitted that the conduct asserted by the assessee extending his credit cards and bank account for the transactions of a third party without consideration at pages 34 to 74 of the Paper Book. He further invited our attention to the cash deposit pay-in slips pertaining to deposits made into the ICICI Bank credit available at pages 24 to 33. The learned counsel also relied upon the undertaking/confirmation furnished by Shri Yogesh Abhimanyu Karbhari acknowledging that the impugned card transactions were carried out by purposes of his fabrication business. It was submitted that the source of the cash deposits stood duly explained through the said confirmation and supporting documents, and that the non-response to the notice issued under section 133(6) occurred only because the communication was sent to an e-mail address that was no longer operative. In these circumstances, the learned counsel urged that, in the interest of justice, the matter may be restored to the file of the Assessing Officer for a proper verification of the source of the cash deposits appearing in the assessee’s credit-card accounts. The learned Departmental Representative, however, submitted that the conduct asserted by the assessee extending his credit cards and bank account for the transactions of a third party without consideration ITA No. 5931/MUM/2025 8 Mr. Bhausaheb B. Pansare at pages 34 to 74 of the Paper Book. He further invited our in slips pertaining to into the ICICI Bank credit-card account, available at pages 24 to 33. The learned counsel also relied upon the undertaking/confirmation furnished by Shri Yogesh Abhimanyu Karbhari acknowledging that the impugned card transactions were carried out by him for the It was submitted that the source of the cash deposits stood duly explained through the said confirmation and supporting response to the notice issued red only because the mail address that was no longer operative. In these circumstances, the learned counsel urged that, in the interest of justice, the matter may be restored to the file of the Assessing Officer for a proper verification of the source of the cash deposits appearing in The learned Departmental Representative, however, submitted that the conduct asserted by the assessee—of extending his credit cards and bank account for the business transactions of a third party without consideration—was Printed from counselvise.com highly improbable. He suggested that it was plausible that the assessee might have received some form of consideration or benefit for allowing his credit meeting business expenditure over a period of two to three months. The learned DR further contended that, even if the assessee’s explanation were to be accepted, the implications of the cash transactions in the hands of Shri YogeshKarbhari, including compliance loan transactions not routed through account instruments, would require examination. 4.3 Notwithstanding these observations, the learned DR agreed that the matter may be remanded to the Assessing Officer for the limited purpose of carrying out necessary verification as requested by the assessee. 5. We have carefully considered the rival submissions and perused the entire material placed on record. for adjudication pertains to the verification of the source of cash deposits made into the assessee’s credit which were subsequently utilised for meeting expenditure incurred through those credit cards. highly improbable. He suggested that it was plausible that the assessee might have received some form of consideration or benefit for allowing his credit-card limits to be utilised for g business expenditure over a period of two to three months. The learned DR further contended that, even if the assessee’s explanation were to be accepted, the implications of the cash transactions in the hands of Shri YogeshKarbhari, including compliance with statutory provisions pertaining to loan transactions not routed through account instruments, would require examination. Notwithstanding these observations, the learned DR agreed that the matter may be remanded to the Assessing Officer for the limited purpose of carrying out necessary verification as requested by the assessee. We have carefully considered the rival submissions and perused the entire material placed on record. for adjudication pertains to the verification of the source of cash deposits made into the assessee’s credit which were subsequently utilised for meeting expenditure incurred through those credit cards. ITA No. 5931/MUM/2025 9 Mr. Bhausaheb B. Pansare highly improbable. He suggested that it was plausible that the assessee might have received some form of consideration card limits to be utilised for g business expenditure over a period of two to three months. The learned DR further contended that, even if the assessee’s explanation were to be accepted, the implications of the cash transactions in the hands of Shri YogeshKarbhari, with statutory provisions pertaining to loan transactions not routed through account-payee Notwithstanding these observations, the learned DR agreed that the matter may be remanded to the Assessing Officer for the limited purpose of carrying out necessary verification as We have carefully considered the rival submissions and perused the entire material placed on record. The sole issue for adjudication pertains to the verification of the source of cash deposits made into the assessee’s credit-card accounts, which were subsequently utilised for meeting expenditure Printed from counselvise.com 5.1 The learned couns various entries in the credit payments of ₹ Corporation, Thane ₹99,500/- incurred towards Bhiwandi (Paper Book p. 36). When queried, the learned counsel was unable to immediately produce corresponding invoices, and was therefore directed to clarify whether such invoices were raised in the name of the assessee or in the name of Shri assessee attributes the entire set of transactions. 5.2 The assessee’s case rests on the assertion that Shri YogeshKarbhari, proprietor of Engineering Works business purposes and had deposited the cash required for meeting the resultant dues out of his own books of account. It is an admitted position that the notice issued under section 133(6) of the Act by the Assessing Office remained unresponded. However, before us, the assessee has expressed readiness to produce Shri Karbhari for personal verification, as well as to furnish all supporting primary evidence establishing the nexus between the deposits in question and the latter’s business activities. The learned counsel for the assessee drew our attention to various entries in the credit-card statements ₹20,000/- and ₹25,000/- to Vighnharta Steel Corporation, Thane (Paper Book p. 34) and expenditure of incurred towards Harsh Fabrication & (Paper Book p. 36). When queried, the learned counsel was unable to immediately produce corresponding invoices, and was therefore directed to clarify whether such invoices were raised in the name of the assessee or in the Yogesh Abhimanyu Karbhari, to whom the assessee attributes the entire set of transactions. The assessee’s case rests on the assertion that Shri YogeshKarbhari, proprietor of M/s Harsh Fabrication & Engineering Works, had utilised the assessee’s credit cards for business purposes and had deposited the cash required for meeting the resultant dues out of his own books of account. It is an admitted position that the notice issued under section 133(6) of the Act by the Assessing Officer to Shri Karbhari remained unresponded. However, before us, the assessee has expressed readiness to produce Shri Karbhari for personal verification, as well as to furnish all supporting primary evidence establishing the nexus between the deposits in ion and the latter’s business activities. ITA No. 5931/MUM/2025 10 Mr. Bhausaheb B. Pansare el for the assessee drew our attention to card statements—such as Vighnharta Steel (Paper Book p. 34) and expenditure of Harsh Fabrication & Engineering, (Paper Book p. 36). When queried, the learned counsel was unable to immediately produce corresponding invoices, and was therefore directed to clarify whether such invoices were raised in the name of the assessee or in the Yogesh Abhimanyu Karbhari, to whom the assessee attributes the entire set of transactions. The assessee’s case rests on the assertion that Shri M/s Harsh Fabrication & the assessee’s credit cards for business purposes and had deposited the cash required for meeting the resultant dues out of his own books of account. It is an admitted position that the notice issued under section r to Shri Karbhari remained unresponded. However, before us, the assessee has expressed readiness to produce Shri Karbhari for personal verification, as well as to furnish all supporting primary evidence establishing the nexus between the deposits in Printed from counselvise.com 5.3 At the same time, we cannot ignore the factual observations of the lower authorities. The Assessing Officer had noted that not only were sizeable cash deposits made towards the credit card accounts, but even the a used for business Fabrication & Engineering Works upon the principle of human probabilities as enunciated by the Hon’ble Supreme Court in Taxmann 89 (SC), held that it was inherently improbable for a salaried individual to permit unfettered use of his credit cards and bank accounts for a third party’s business without cogent commercial justification. 5.4 Nonetheless, the Tribunal is equally principle that no person should be prejudiced for want of proper verification when relevant material is available and the assessee expresses willingness to produce the concerned party. The explanation tendered, though presently uncorroborated, cannot be rejected a final opportunity for proper examination. The evidentiary gaps pointed out by the revenue authorities are capable of being addressed through direct verification of the alleged At the same time, we cannot ignore the factual observations of the lower authorities. The Assessing Officer had noted that not only were sizeable cash deposits made towards the credit card accounts, but even the assessee’s salary account was used for business-related transactions of Fabrication & Engineering Works. The learned CIT(A), relying upon the principle of human probabilities as enunciated by the Hon’ble Supreme Court in SumatiDayal v. CIT Taxmann 89 (SC), held that it was inherently improbable for a salaried individual to permit unfettered use of his credit cards and bank accounts for a third party’s business without cogent commercial justification. Nonetheless, the Tribunal is equally conscious of the cardinal principle that no person should be prejudiced for want of proper verification when relevant material is available and the assessee expresses willingness to produce the concerned party. The explanation tendered, though presently corroborated, cannot be rejected in limine without affording a final opportunity for proper examination. The evidentiary gaps pointed out by the revenue authorities are capable of being addressed through direct verification of the alleged ITA No. 5931/MUM/2025 11 Mr. Bhausaheb B. Pansare At the same time, we cannot ignore the factual observations of the lower authorities. The Assessing Officer had noted that not only were sizeable cash deposits made towards the credit- ssessee’s salary account was related transactions of M/s Harsh . The learned CIT(A), relying upon the principle of human probabilities as enunciated by SumatiDayal v. CIT (1995) 80 Taxmann 89 (SC), held that it was inherently improbable for a salaried individual to permit unfettered use of his credit cards and bank accounts for a third party’s business without conscious of the cardinal principle that no person should be prejudiced for want of proper verification when relevant material is available and the assessee expresses willingness to produce the concerned party. The explanation tendered, though presently without affording a final opportunity for proper examination. The evidentiary gaps pointed out by the revenue authorities are capable of being addressed through direct verification of the alleged Printed from counselvise.com source—namely, th YogeshKarbhari. 5.5 In these circumstances, and in the interest of substantial justice, we deem it appropriate to set aside the orders of the authorities below and restore the matter to the file of the Assessing Office comprehensive verification of the source of the cash and online deposits made into the assessee’s credit accounts. The Assessing Officer shall be at liberty to conduct such enquiry, including summoning parti of account, and calling for additional evidence, as may be warranted in the facts of the case. 5.6 It is clarified that the assessee shall produce Shri Yogesh Abhimanyu Karbhari and all relevant documentary evidence in support of his claim opportunity of being heard. The Assessing Officer shall thereafter pass a speaking order in accordance with law. 5.7 The ground of the appeal of the Assessee is accordingly allowed for statistical purpose. namely, the books and financial statements of Shri YogeshKarbhari. In these circumstances, and in the interest of substantial justice, we deem it appropriate to set aside the orders of the authorities below and restore the matter to the file of the Assessing Officer for the limited purpose of carrying out a comprehensive verification of the source of the cash and online deposits made into the assessee’s credit accounts. The Assessing Officer shall be at liberty to conduct such enquiry, including summoning parties, examining books of account, and calling for additional evidence, as may be warranted in the facts of the case. It is clarified that the assessee shall produce Shri Yogesh Abhimanyu Karbhari and all relevant documentary evidence in support of his claim, and shall be afforded adequate opportunity of being heard. The Assessing Officer shall thereafter pass a speaking order in accordance with law. The ground of the appeal of the Assessee is accordingly allowed for statistical purpose. ITA No. 5931/MUM/2025 12 Mr. Bhausaheb B. Pansare e books and financial statements of Shri In these circumstances, and in the interest of substantial justice, we deem it appropriate to set aside the orders of the authorities below and restore the matter to the file of the for the limited purpose of carrying out a comprehensive verification of the source of the cash and online deposits made into the assessee’s credit-card accounts. The Assessing Officer shall be at liberty to conduct es, examining books of account, and calling for additional evidence, as may be It is clarified that the assessee shall produce Shri Yogesh Abhimanyu Karbhari and all relevant documentary evidence and shall be afforded adequate opportunity of being heard. The Assessing Officer shall thereafter pass a speaking order in accordance with law. The ground of the appeal of the Assessee is accordingly Printed from counselvise.com 6 In the result, appeal of the Assessee is purposes. Order pronounced in the open Court on Sd/ (RAJ KUMAR CHAUHAN JUDICIAL MEMBER Mumbai; Dated: 26/11/2025 Tarun, Sr. P.S.. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// In the result, appeal of the Assessee is allowed for statistical ounced in the open Court on 26/11/2025. Sd/- Sd/ (RAJ KUMAR CHAUHAN) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai ITA No. 5931/MUM/2025 13 Mr. Bhausaheb B. Pansare allowed for statistical /11/2025. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai Printed from counselvise.com "