NILESHKUMAR KANTILAL MODI,ANKHLESHWAR V. INCOME TAX OFFICER, BHARUCH

ITA 532/SRT/2025

AI Insights

The case involves two appeals filed by Nileshkumar Kantilal Modi against the orders passed by CIT(A)/Addl/JCIT(A), Mumbai for the assessment years 2012-13 and 2021-22. The primary issue in both appeals was the adjustment proposed by the Centralized Processing Center (CPC) due to a mismatch in expenditure reported in the audit report and the Income Tax Return (ITR). The assessee contended that the income from various sources including PPF interest, dividend income, and others, totaling Rs. 4,63,035, was correctly reported under 'income from other sources' in the ITR. The Tribunal found that the CPC's observation of no response from the assessee was incorrect and directed the JAO to consider the assessee's detailed response and documents provided.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838920 (ITAT-SURAT)
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2021-2022
• Appeal Filed On: 01-05-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHISH KUMAR
• Assessee Lawyers: RASESH SHAH

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT “SMC” BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. Nos. 530 & 532/SRT/2025 (Assessment Year: 2012-13 & 2021-22) Nileshkumar Kantilal Modi, Plot No. 407/21, Swagat Society, Near Lions School, GIDC, Anklesvar, Bharuch PAN : ADFPM4150K Vs. The ITO, Bharuch (Appellant) .. (Respondent) Appellant by : Shri Rasesh Shah, C.A. Respondent by: Shri Ashish Kumar, Sr. D.R. Date of Hearing 19.01.2026 Date of Pronouncement 16.02.2026 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER:- These two appeals are filed against the orders dated 21-02- 2025 and 14-02-2025 respectively passed by CIT(A)/Addl/JCIT(A), Mumbai for assessment years 2012-13 and 2021-22. 2. Firstly, taking up ITA No. 532/Ahd/2025 A.Y. 2021-22. On perusal of the records, it appears that while processing return of income, the CPC issued notice on 21-03-2022 proposing an adjustment of Rs. 4,63,035/- u/s. 143(1)(a) on account of mismatch in expenditure indicated in audit report and ITR (1). The Assessee submitted his reply there by stating that the assessee already mention Rs. 4,63,035/- in his return (ITR) under the head “income from other sources”. The bifurcation Printed from counselvise.com ITA Nos. 530 & 532/Srt/2025 NileshkumarKantilalModi Vs. ITO Asst.Years:2012-13 &2021-22 - 2– was under PPF interest, dividend income, savings bank interest, commission income, interest on deposits, rent and subsidy. The same was explained by the assessee stating thereby that there is no variance in return at Sl. No. 5(d) of Part A under the head “any other item of income” and Tax Audit. In response to the intimation notice, the assessee has provided clarification on 07- 06-2022 mentioning that the said amount was mentioned under PPF interest, dividend income, saving’s bank interest, commission income, interest on deposits, rent and subsidy. Thus, we held that the observation of the CPC that no response was submitted by the assessee appears to be incorrect. Therefore, we direct the JAO to take into account assessee’s response dated 07-06-2022 as well as verify the reconciliation statement filed by the assessee along with affidavit. Thereafter adjudicate the same as per Income Tax Act. In ITA No.530/Srt/2025, the issue is identical. Therefore, for A.Y. 2021-22 also the JAO is directed to adjudicate the issue as mentioned hereinabove. 3. In the result, both the appeals of the assessee are partly allowed for statistical purposes. Order is pronounced in the open Court on 16.02.2026 Sd/- Sd/- (DR. B.R.R. KUMAR) (SUCHITRA KAMBLE) VICE-PRESIDENT JUDICIAL MEMBER Printed from counselvise.com ITA Nos. 530 & 532/Srt/2025 NileshkumarKantilalModi Vs. ITO Asst.Years:2012-13 &2021-22 - 3– Surat; Dated 16/02/2026 ak आदेशक\u0006\u0007\bत ल पअ\u000fे षत/Copy of the Order forwarded to : 1. अपीलाथ\u0015/ The Appellant 2. \u0007\u0016यथ\u0015/ The Respondent. 3. संबं\u001bधतआयकरआयु त/ Concerned CIT 4. आयकरआयु त ) अपील ( / The CIT(A)- 5. वभागीय\u0007\bत\bन\u001bध , आयकरअपील(यअ\u001bधकरण , /DR,ITAT, Surat, 6. गाड+फाईल / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायकपंजीकार (Asstt. Registrar) आयकरअपील(यअ\u001bधकरण ITAT, Surat Printed from counselvise.com "