NASIM AHMAD KHAN,SIDDHARTHNAGAR V. ACIT, GONDA- NEW

ITA 492/LKW/2024

AI Insights

The case involves an appeal by the assessee, Nasim Ahmad Khan, against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, which confirmed an addition of Rs.13,50,000 to the assessee's income for the assessment year 2017-18. The addition was initially made by the Assessing Officer under section 68 read with section 115BBE of the Income Tax Act, 1961, due to unexplained cash capital contributions. The assessee argued that the contributions were received from close relatives and supported this with affidavits and income tax returns of the donors. However, both the lower authorities failed to adequately verify these evidences. The Tribunal found that the authorities did not properly examine the evidences provided by the assessee and thus remanded the matter back to the CIT(A) for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 823059 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 09-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.R.N. SHUKLA
• Keywords: Set aside; Gift; Principle of natural justice
• Section: 68

Judgement Text

"आयकर अपीलीय अधिकरण ‘बी’ न्यायपीठ, लखनऊ। IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW श्री क ुल भारत, उपाध्यक्ष एवं श्री ननखखल चौिरी, लेखा सदस्य क े समछ BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI NIKHIL CHOUDHARY, ACCOUNTANT MEMBER आयकर अपील सं/ ITA No.492/LKW/2024 ननिाारण वर्ा/ Assessment Year: 2017-18 Nasim Ahmad Khan Ward No.7, Subhash Nagar, Shohratgarh, Siddharthnagar, Uttar Pradesh-272205. v. The Asstt. Commissioner of Income Tax, Gonda New 271003. PAN:AIGPK3776M अपीलार्थी/(Appellant) प्रत्यर्थी/(Respondent) अपीलार्थी कक और से/Appellant by: None प्रत्यर्थी कक और से /Respondent by: Shri R. R. N. Shukla, Addl. CIT(DR) सुनवाई कक तारीख / Date of hearing: 26 11 2025 घोर्णा कक तारीख/ Date of pronouncement: 23 12 2025 आदेश / O R D E R PER KUL BHARAT, VICE PRESIDENT.: This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 11.06.2024, pertaining to the assessment year 2017-18. The assessee has raised the following grounds of appeal: - “1. Because CIT(A)/NFAC has erred in law and on facts in dismissing the appeal without properly appreciating the facts of the case. 2. Because CIT(A) has erred in law and on facts in confirming the addition of Rs.13,50,000/- made by AO u/s 68 r.w.s. 115BBE of the Act. 3. Because the case laws cited by CIT(A) are not applicable in law and/or on facts, hence addition confirmed by placing reliance on them is not tenable/justifiable. Printed from counselvise.com ITA No.492/LKW/2024 Page 2 of 4 4. Because the order appealed against is contrary to law, facts and principes of natural justice.” 2. At the time of hearing, no one attended the proceedings on behalf of the assessee. The appeal was taken up for hearing in the absence of the assessee and is being disposed of on the basis of the material available on records. 3. The facts giving rise to the present appeal are that the assessee filed his return of income declaring a total income of Rs.54,51,340/- along with agricultural income of Rs.3,50,000/-. Thereafter, the case was selected for limited scrutiny, the reason for such selection being examination of share capital/capital contribution. Accordingly, notice under section 143(2) of the Income Tax Act, 1961 (“Act”, for short) was issued. In response thereto, the Ld. Authorized Representative of the assessee appeared from time to time and furnished the requisite details. During the course of assessment proceedings, the Assessing Officer called upon the assessee to explain the cash capital contribution of Rs.3,50,000/-. The assessee submitted that the said amount was received in cash from his father, mother and wife. In support of the claim, affidavits of the donors were filed along with copies of their income-tax returns. However, the Assessing Officer did not accept the explanation and the evidences furnished by the assessee and proceeded to make an addition of 13,50,000/-. Aggrieved by the said addition, the assessee carried the matter in appeal before the Ld. CIT(A), who confirmed the action of the Assessing Officer without adverting to or examining the evidences filed by the assessee. Now, the assessee is in appeal before this Tribunal. Printed from counselvise.com ITA No.492/LKW/2024 Page 3 of 4 4. The Ld. Sr. Departmental Representative submitted that, having regard to the facts and circumstances of the case, the lower authorities were justified in making the addition, as the alleged gifts were received in cash. He strongly relied upon the orders of the authorities below. 5. We have heard the Ld. Sr. Departmental Representative and perused the material available on record. It is an undisputed fact that before the Assessing Officer, the assessee had duly filed confirmations from the donors in the form of affidavits. It is also a matter of record that copies of income-tax returns of the donors were furnished. However, both the authorities below have failed to verify the correctness of the evidences filed by the assessee. Therefore, looking to the totality of the facts, we find that the assessee had filed affidavits in support of his contention that the amount was received from close relatives. The authorities below have not made any adverse comments with regard to the creditworthiness of such close relatives. It is also evident from the impugned order that the Ld. CIT(A) has not adverted to the specific submission of the assessee that the amounts were received from close family members who had the capacity to make such contributions. Further, the assessee has explained that the funds were utilized during the year for construction of a nursing home. In these circumstances, it was incumbent upon the authorities below to verify the correctness of the claim of the assessee by examining the evidences placed on record. In view of the above, we set aside the impugned order and restore the issue to the file of the Ld. CIT(A) with a direction to decide the same afresh on merits after duly considering and verifying the submissions and evidences filed by the assessee, in accordance Printed from counselvise.com ITA No.492/LKW/2024 Page 4 of 4 with law. Grounds raised in this appeal are allowed for statistical purpose. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 23/12/2025. Sd/- [ननखखल चौिरी] Sd/- [क ुल भारत] [NIKHIL CHOUDHARY] [KUL BHARAT] लेखा सदस्य/ACCOUNTANT MEMBER उपाध्यक्ष/VICE PRESIDENT ददनांक/DATED: 23/12/2025 Vijay Pal Singh, (Sr. PS) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR 5. Guard File By order Sr. Private Secretary //True Copy// Printed from counselvise.com "