SONY KUMUDBHAI MODI,SURAT V. ITO, WARD- 1(2)(1), SURAT

ITA 629/SRT/2025

AI Insights

This case involves an appeal by Sonu Kumudbhai Modi against the order of the Commissioner of Income Tax (Appeals), which upheld the addition of Rs.65,46,017 under section 68 of the Income-tax Act, 1961. The addition was made due to the assessee's failure to comply with notices and provide necessary explanations regarding financial transactions amounting to Rs.65,46,017 with concerns managed by Shri Kamal Zhaveri. The Tribunal found that the assessee was non-compliant and failed to furnish requisite documentary evidence to substantiate his claim. However, in the interest of justice, the Tribunal decided to give the assessee another opportunity to present his case.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831741 (ITAT-SURAT)
• Duration Of Justice: 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 30-05-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: P. M. JAGASHETH
• Keywords: Set aside; Bogus
• Section: 148; 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER I.T.A. No. 629/SRT/2025 (Assessment Year: 2018-19) Sonu Kumudbhai Modi, 401, Siddharth Apartment, Nr. Vishwakarma Temple Sagrampura Majura Gate, Surat - 395002 [PAN: ASZPM2107R] Vs. Assessment Unit, ITO, Jurisdictional AO: ITO, Ward – 1(2)(1), Surat (Appellant) .. (Respondent) Appellant by : Shri P.M. Jagasheth, CA Respondent by: Shri Ajay Uke, Sr. DR Date of Hearing 21.01.2026 Date of Pronouncement 23.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT: This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as “Ld. CIT(A)”] dated 21.08.2024, under section 250 of the Income-tax Act, 1961 [in short “the Act”] for the Assessment Year 2018-19. 2. Delay condoned. 3. In the present case, the assessee was engaged in the business of providing bogus bill entries and accommodation loan entries on commission basis. The assessee had entered into financial transactions to the tune of Rs.65,46,017/- with different concerns managed by Shri Kamal Zhaveri. Accordingly, the case was re-opened and notice u/s 148 was issued on 31.03.2022. In spite of issuance of repeated notices, there was no compliance on the part of the assessee, hence, the Assessing Officer made addition of Rs.65,46,017/- under section 68 of the Act. Printed from counselvise.com ITA No. 629/Srt/2025 Asst. Year: 2018-19 - 2– 4. On perusal of the records, it is observed that the assessee was afforded sufficient opportunities of hearing given by the Assessing Officer, but the assessee failed to furnish requisite explanations and reply before the AO. Consequently, the Ld. CIT(A), based on the material available on record, upheld the action of the AO and dismissed the appeal of the assessee. We also find that the assessee remained non-compliant before the AO and failed to furnish requisite documentary evidence to substantiate his claim. Before us, the Ld. Counsel for the assessee prayed that one more opportunity may be given, all necessary details, clarifications, and explanations would be furnished to the revenue authorities. Hence, in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the matter to the file of the AO for de novo adjudication. The assessee shall submit all the relevant details and documents before the AO and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. 5. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 23.01.2026. Sd/- Sd/- (SUCHITRA R. KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Surat; Dated 23.01.2026 **SAMANTA आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण/ DR, ITAT, Surat 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, // TRUE COPY // सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Surat Printed from counselvise.com "