SAVITA HEMANT RATHOD,SURAT V. ITO, WARD-2(3), SURAT

ITA 783/SRT/2025

AI Insights

The case involves an appeal by Savita Heman Rathod against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which confirmed the action of the AO in reopening the assessment for the Assessment Year 2017-2018. The AO had reopened the assessment based on information from another case, suggesting that the assessee had advanced an unsecured loan. The tribunal examined whether this information was adequate to justify the reopening of the assessment and concluded that it was not, leading to the quashing of the assessment order.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831379 (ITAT-SURAT)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 25-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: SHAUNAK R. ZAVERI
• Section: 147

Judgement Text

" आयकर अपीलीय अिधकरण,सूरत \u0010ा यपीठ ‘एस.एम.सी’, सूरत । IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH ‘SMC’, SURAT [conducted through Virtual Court at Ahmedabad Benches, Ahmedabad] \u001aी संजय गग , \u0010ा ियक सद क े सम\"। Before Shri Sanjay Garg, Judicial Member आयकर अपील सं /ITA No.783/SRT/2025 िनधा \u0010रण वष\u0010 /Assessment Year : 2017-18 Savita Heman Rathod K – 2001 New T.t. Market Ring Road Surat – 395 001 बनाम/ v/s. The Income Tax Officer Ward-2(3), Surat – 395 002 \u0014थायी लेखा सं./PAN: AAWPR 6274 M (अपीलाथ&/ Appellant) ('( यथ&/ Respondent) Assessee by : Shri Shaunak R. Zaveri, CA Revenue by : Shri Ajay Uke, Sr.DR सुनवाई की तारीख/Date of Hearing : 08/01/2026 घोषणा की तारीख /Date of Pronouncement: 19/01/2026 आदेश/O R D E R The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 28/05/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2017-2018. 2. The assessee, in this appeal, has taken following grounds of appeal: “1.0 That on the facts and in the circumstances of the case, the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [here-in- after referred to as Ld. CIT(Appeals)] was not justified and grossly erred in confirming the action of the A.O. in confirming the order passed u/s. 147 r.w.s 144B of the LT. Act, 1961 which is incomplete and also bad on facts. 2.0 That on the facts and in the circumstances of the case, the Ld. CIT(Appeals) was not justified and grossly erred in confirming the action of the A.O. in by accepting Printed from counselvise.com ITA No.783/SRT/2025 Savita Hemant Rathod vs. ITO Asst. Year : 2017-18 2 the addition of Rs. 5,00,000/- on account of loan treated as unexplained money u/s. 69A of the Act. 3.0 That the appellant craves leave to add, to amend, modify, rescind, supplement or alter any of the grounds stated here-in-above, either before or at the time of hearing of this appeal.” 3. At the outset, the Ld. Counsel for the assessee has invited my attention to the impugned order of the Assessing Officer (AO) to submit that, in this case, the assessment of the assessee was reopened by the AO on the ground that during the assessment proceedings in the case of one M/s.Jaymangal Realities, it was found that the said assessee had accepted unsecured loans from various persons and the name of the assessee also figured therein and it was shown that the assessee had advanced an unsecured loan of Rs.8,00,000/- to the said party. On the basis of said information, the assessment of the assessee was reopened by the AO. 4. The sole information, that the assessee had advanced an amount of Rs.8 lakhs as unsecured loan, cannot be said to be an information on the basis of which the AO can form the belief that the income of the assessee has escaped assessment. Reopening of the assessment in this case is, therefore, bad in law. Accordingly, the impugned assessment order passed u/s.147 of the Act is hereby quashed. 4. In the result, the appeal of the assessee stands allowed. Order pronounced in the Open Court on 19/01/2026. Sd/- ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 19/01/2026 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS Printed from counselvise.com ITA No.783/SRT/2025 Savita Hemant Rathod vs. ITO Asst. Year : 2017-18 3 आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)- (NFAC), Delhi 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , सूरत /AR,ITAT, Surat/Ahmedabad. 6. गाड\u0010 फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT,Surat/Ahmedabad 1. Date of dictation (dictation pad is attached with the file)) : 08.1.2026 2. Date on which the typed draft is placed before the Dictating Member. : 11.1.2026 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 19.1.26 7. Date on which the file goes to the Bench Clerk. : 19.1.26 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : Printed from counselvise.com "