NIDHIBEN MRUGESHKUMAR SHAH,ANAND V. THE ACIT, (OSD), WARD-5, ANAND

ITA 1627/AHD/2025

AI Insights

The case involves Nidhiben Mrugeshkumar Shah, the appellant, who appealed against the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961, for concealing particulars of income or furnishing inaccurate particulars of income. The penalty was imposed due to unexplained cash deposits amounting to Rs.10,00,100 in the assessee's bank account during the Assessment Year 2011-12. The initial penalty and subsequent confirmation by the CIT(A) were challenged. The ITAT had previously restored the issue back to the CIT(A) for a detailed examination of the evidence provided by the assessee, which led to the current restoration of the penalty order for re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778748 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 26-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAKOLI UTTAM GHOSH
• Assessee Lawyers: VIRANCH MODI
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 1627/Ahd/2025 (िनधा[रण वष[ / Assessment Year : 2011-12) Nidhiben Mrugeshkumar Shah 3, Laksh Gold Bunglows, B/h. DZ Patel High School, 80 Feet Road, Vidyanagar Road, Anand – 388001, Gujarat बनाम/ Vs. Assistant Commissioner of Income Tax (OSD) Ward-5, Anand èथायी लेखा सं./जीआइआर सं./PAN/GIR No. : APRPJ4087Q (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : Shri Viranch Modi, AR Ĥ×यथȸ कȧ ओर से/Respondent by : Smt. Kakoli Uttam Ghosh, Sr. DR Date of Hearing 13/10/2025 Date of Pronouncement 17/10/2025 O R D E R The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), (hereinafter referred to as “CIT(A)”), National Faceless Appeal Centre (hereinafter referred to as “NFAC”), Delhi dated 18.06.2025 confirming the levy of penalty for concealing particulars of income / furnishing inaccurate particulars of income, levied under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2011-12. Printed from counselvise.com ITA No. 1627/Ahd/2025 [Nidhiben Mrugeshkumar Shah vs. ACIT] A.Y. 2011-12 - 2 – 2. The orders of the authorities below reveal that penalty was levied for addition made to the income of the assessee on account of cash found deposited in her bank account, source of which remained unexplained amounting to Rs.10,00,100/-. The quantum of penalty levied was the minimum penalty leviable being 100% of the tax sought to be evaded amounting to Rs.1,55,561/-. The same was confirmed by the Ld. CIT(A). 3. Before us, Ld. Counsel for the assessee pointed out that the addition made to the income of the assessee on which penalty was levied by the AO and confirmed by the Ld.CIT(A) was challenged by the assessee before the ITAT, who, in turn, restored the issue back to the file of the Ld.CIT(A) for re-consideration. The copy of the order of the ITAT in assessee’s appeal in ITA No.990/Ahd/2025, dated 24.09.2025 was placed before us and our attention was drawn to para 7 to 7.6 of the order, wherein it was pointed out that the ITAT had noted that the authorities below had not properly appreciated the evidences filed by the assessee explaining the source of cash deposits and, therefore, had restored the issue back to the file of the Ld. CIT(A) to consider all the evidences afresh supply the remand report of the AO to the assessee and, thereafter pass speaking order after affording adequate opportunity of hearing to the assessee. 4. Ld. DR fairly agreed with the same. 5. In the light of the same, since, the addition on which penalty has been levied has been set aside to the Ld. CIT(A) for re- consideration, the penalty order of the Ld. CIT(A) is also restored Printed from counselvise.com ITA No. 1627/Ahd/2025 [Nidhiben Mrugeshkumar Shah vs. ACIT] A.Y. 2011-12 - 3 – back to his file to be adjudicated alongwith appeal of the assessee in quantum proceedings. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. This Order pronounced on 17/10/2025 Sd/- (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad; Dated 17/10/2025 S. K. SINHA True Copy आदेश कȧ Ĥितिलǒप अĒेǒषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंिधत आयकर आयुƠ / Concerned CIT 4. आयकर आयुƠ(अपील) / The CIT(A)- 5. ǒवभागीय Ĥितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "