PUSHPA SUNIL DEVIKAR,NAGPUR V. ITO WARD-4(4), NAGPUR

ITA 717/NAG/2025

AI Insights

The case involves Pushpa Sunil Devikar, the appellant, contesting an addition of 47,76,500 made by the Income Tax Officer (ITO) under section 69A of the Income Tax Act, 1961, for unexplained money. The addition was based on cash deposits in the assessee's bank account, which the ITO and the Commissioner of Income Tax (Appeals) found inadequately explained. The assessee claimed that the deposits were proceeds from the sale of self-owned gold jewellery, accumulated from 1990 to 2010, and that these funds were used to purchase immovable property. The Tribunal found merit in providing another opportunity for the assessee to substantiate her claims and remitted the matter back to the JAO for further examination.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 836062 (ITAT-NAGPUR)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 13-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURJIT KUMAR SAHA
• Assessee Lawyers: SHABBIR BOHRA; R.D. PARAKH
• Keywords: Capital asset; Opportunity of being heard; Reasonable cause
• Section: 147; 54F

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR “SMC” BENCH : NAGPUR (through virtual) BEFORE DR. MANISH BORAD, ACCOUNTANT MEMBER I.T.A.No.717/NAG/2025 (Assessment Year 2015-2016) Pushpa Sunil Devikar, 43, Reshimbagh, Umrer Road, Opp. Mohata Science College, Nagpur. PAN : BRVPD 2077 F vs. ITO, Ward-4(4), Nagpur. (Appellant) (Respondent) For Assessee : Shri Shabbir Bohra & Shri R.D. Parakh, CAs For Revenue : Shri Surjit Kumar Saha, Sr.DR Date of Hearing : 04.02.2026 Date of Pronouncement : 10.02.2026 ORDER This appeal at the instance of the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)”], dated 13/10/2025 passed u/s. 250 of the Income Tax Act, 1961 (for short, 'the Act') which is arising out of assessment order dated 21.02.2023 passed u/s. 147 of the Act by the ITO, Ward-4(4), Nagpur for the Assessment Year 2015-16 (A.Y.) 2. The assessee has raised eight grounds of appeal, but all are against the addition of ₹ 47,76,500/- made by the Ld. Printed from counselvise.com 2 ITA.No.717/NAG/2025 (Pushpa Sunil Devikar) Assessing Officer (Ld.AO) invoking section 69A of the Act for unexplained money. 3. At the outset, learned counsel for the assessee submitted that source of the alleged cash deposits are from sale of self-owned gold jewellery accumulated over the years 1990- 2010 and that the sale proceeds received, has been deposited in the bank account and thereafter investment has been made for purchase of immovable property. He also submitted that assessee has all relevant details to prove the genuineness of sale of gold jewellery and that the assessee is eligible for exemption/ deduction u/s. 54F of the Act for the investment in residential house. Request made to afford one more opportunity to furnish these details before the Ld. Jurisdictional Assessing Officer (JAO) for necessary verification. 4. On the other hand, Ld. Departmental Representative (DR) vehemently argued supporting the order of Ld. CIT(A). 5. I have heard rival contentions and perused the records placed before me. I observe that assessee is an individual and based on the information about transaction in immovable property and cash deposits in the bank account, assessment proceedings for A.Y. 2015-16 were initiated after validly serving statutory notices. No regular return of income u/s. 139(1) of the Act has been filed. In compliance to notice u/s. Printed from counselvise.com 3 ITA.No.717/NAG/2025 (Pushpa Sunil Devikar) 148 of the Act, assessee furnished return of income on 26.11.2022 declaring income of ₹ 1,89,980/-. During the course of re-assessment proceedings, Ld.AO asked the assessee about the source of cash deposits of ₹ 47,76,500/-, to which it was submitted that source is from sale of self-owned gold jewellery held by the assessee for the past many years. However, in the absence of relevant details, the Ld.AO did not accept the submissions. Before the appellate authority also, assessee failed to get any relief as the documents filed by the assessee were not sufficient to prove the source of cash deposits. Also assessee could not produce the copies of sale or purchase bills of the jewellery. Now, before this Tribunal, learned counsel for the assessee has stated that assessee has been purchasing gold jewellery since 1990-2010 with the anticipation of good returns. Gold jewellery has been sold in parts and the cash received therefrom has been deposited in the bank account and thereafter investment has been made for purchase of immovable property at ₹ 24,00,000/-. It is also claimed that assessee deserves the benefit of deduction u/s. 54F of the Act for the investment in immovable property out of consideration received from sale of capital asset other than residential house. 6. Under these given facts and circumstances and also in the larger interest of justice and being fair to both the parties, I deem it appropriate to afford one more opportunity to the Printed from counselvise.com 4 ITA.No.717/NAG/2025 (Pushpa Sunil Devikar) assessee and remit back the issues raised in the instant appeal to the file of Ld. JAO for the limited purpose of afresh examination of the issues raised in the instant appeal. Needless to mention that Ld. JAO shall afford a reasonable opportunity of being heard to the assessee and then decide the issues in accordance with law. The assessee is also directed to remain vigilant and not to take unnecessary adjournments unless required for reasonable cause and file all the details called for by the Ld. JAO. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. 7. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 10.02.2026 Sd/- Sd/- [MANISH BORAD] ACCOUNTANT MEMBER Dated : 10th February, 2026 vr/- Copy to 1. The appellant 2. The respondent 3. The Pr.CIT, Nagpur concerned. 4. D.R. ITAT, SMC Bench, Nagpur. 5. Guard File. By Order //True Copy // Senior Private Secretary ITAT, Nagpur Printed from counselvise.com "