SHAURYA DEVELOPERS,AHMEDABAD V. DCIT, CENT CIR 2(1) AHMEDABAD, AHMEDABAD

ITA 1934/AHD/2025

AI Insights

The case involves Shaurya Developers, who appealed against the order of the Commissioner of Income Tax (Appeals), Ahmedabad-12, which upheld the addition of Rs. 11,00,000 to the assessee's income for the Assessment Year 2017-18. The addition was initially made by the Assessing Officer under Section 68 of the Income-tax Act, 1961, treating the loans received from M/s. Olympic Corporation and M/s. Ritesh Patel & Sons as unexplained cash credits. The tribunal examined the timing of the repayments relative to the filing of the income tax return and the assessment proceedings, leading to the conclusion that the additions were not justified.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829474 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Ahmedabad
• Assessment Year: misc
• Appeal Filed On: 13-10-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA R. KAMBLE, JUDICIAL MEMBER ITA No.1934/Ahd/2025 (Assessment Year: 2017-18) Shaurya Developers, 314, 2 nd Floor, New Cloth Market, Raipur, Kankaria, Ahmedabad [PAN : ABTFS 7179 J] Vs. DCIT, Central Circle 2(1), Ahmedabad (Appellant) .. (Respondent) Appellant represented by : Shri Chetan Agarwal, AR Respondent represented by: Shri Veerbadram Vislavath, Sr DR Date of Hearing 13.01.2026 Date of Pronouncement 13.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- Delay Condoned. This appeal has been filed by the Assessee against the order dated 30.07.2025 passed by the Ld. Commissioner of Income Tax (Appeals), Ahmedabad-12 (‘Ld. CIT (A)’ in short), under Section 250 of the Income-tax Act, 1961 (‘the Act’ in short) for Assessment Year 2017-18. 2. The sole grievance raised by the assessee in its appeal reads as under:- “The Ld. CIT(A) as erred in law as well as on fact in upholding an addition of Rs.11,00,000/- made by the Ld. AO u/s 68 of the Act.” 3. The brief facts of the case are that the Assessing Officer made an addition of Rs. 10,00,000/- on account of loan received from M/s. Olympic Corporation and Rs. 1,00,000/- on account of amount received from M/s. Ritesh Patel & Sons, treating the same as unexplained cash credits u/s 68 of the Act. Notice under section 143(2) of the Act was issued on 10.08.2018. The assessee had filed its return of income on 31.10.2017 declaring a total income of Rs. 35,95,670/-. 4. We have carefully considered the submissions and examined the material placed on record. We find that the amount of Rs. 10,00,000/- was received from M/s. Printed from counselvise.com ITA No. 1934/Ahd/2025 Shaurya Developers Vs. DCIT Asst.Year :2017-18 - 2– Olympic Corporation on 13.07.2016 and was repaid on 24.05.2017. Similarly, the amount of Rs. 1,00,000/- received from M/s. Ritesh Patel & Sons on 28.07.2016 was repaid on 25.04.2017. It is an undisputed fact that both the amounts were repaid by the assessee before the filing of the return of income as well as before the completion of the assessment proceedings. In view of these facts and circumstances, we hold that the addition made u/s 68 of the Act is not sustainable. 5. In the result, the appeal of the assessee is allowed. Heard, dictated and pronounced in open court on 13.01.2026 Sd/- Sd/- (SUCHITRA R. KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 13.01.2026 **btk आदेशकी\u0007ितिलिपअ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007/ The Appellant 2. \b थ\u0007/ The Respondent. 3. संबंिधतआयकरआयु\u0015/ Concerned CIT 4. आयकरआयु\u0015(अपील) /The CIT(A)- 5. िवभागीय\bितिनिध, आयकरअपीलीयअिधकरण, अहमदाबाद/ DR, ITAT, Ahmedabad 6. गाड फाईल /Guard file. आदेशानुसार/ BY ORDER, True Copy सहायकपंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation … ……Dictated in the open court on ..13.01.2026 2. Date on which the typed draft is placed before the Dictating Member ….13.01.2026 3. Other Member…13.01.2026 4. Date on which the approved draft comes to the Sr.P.S./P.S…..13.01.2026 5. Date on which the fair order is placed before the Dictating Member for pronouncement…..13.01.2026 6. Date on which the fair order comes back to the Sr.P.S./P.S….13.01.2026 7. Date on which the file goes to the Bench Clerk …13.01.2026 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 Dispatch of the Order…………………………………… Printed from counselvise.com "