SUDHIR RAMCHANDRAJI MANTRI,JALNA V. ASSESSMENT UNIT, INCOME TAX DEPARTMENT, JALNA

ITA 526/PUN/2025

AI Insights

The case involves Sudhir Ramchandraji Mantri, who appealed against the order of the National Faceless Appeal Centre (NFAC) Delhi, which confirmed an addition of Rs. 44.00 lakh to his income for the Assessment Year 2022-23. This addition was initially made by the Assessing Officer (AO) during scrutiny proceedings, suspecting the source of investment that yielded interest income. The Tribunal examined the records and found that the interest income was derived from the accumulated salary of the assessee, which was properly recorded and taxed in previous years. The Tribunal concluded that there was no justification for the addition under section 69 of the Act, leading to the allowance of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774708 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Appeal Filed On: 27-02-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILESH SRIVASTVA
• Keywords: Set aside; Unexplained investment; Salary income

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.526/PUN/2025 Assessment Year : 2022-23 Sudhir Ramchandraji Mantri, 1, R P Road, Kali kurti, Near Ram Mandir, Jalna - 431203, Maharashtra PAN: AAXPM9302N Vs. Assessment Unit, Income Tax Department Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2022-23 is directed against the order dated 11.12.2024 of National Faceless Appeal Centre (NFAC) Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated 18.03.2024 passed u/s.143(3) r.w.s144B of the Act. 2. When the appeal was called for, none appeared on behalf of the assessee. We therefore proceed to adjudicate the appeal with the assistance of ld. DR and the material available on record. Appellant by : None Respondent by : Shri Akhilesh Srivastva Date of hearing : 30.07.2025 Date of pronouncement : 03.09.2025 Printed from counselvise.com ITA No.526/PUN/2025 Sudhir Ramchandraji Mantri 2 3. The sole grievance of the assessee is that ld.CIT(A) erred in confirming the addition for unexplained investment amounting to Rs.44.00 lakh. 4. Brief facts of the case are that the assessee is an individual and for A.Y. 2012-13 income of Rs.17,04,000/- declared in the return e-filed on 28.07.2022. Case selected for scrutiny through CASS. During the course of assessment proceedings, ld. Assessing Officer (AO) observed that assessee has received interest of Rs.5,15,257/- from Chhaya Sudhir Mantri. Ld. AO was not satisfied with the source of investment on which interest income has been received and concluded the proceedings making addition of Rs.44.00lakh in the hands of assessee towards unexplained investment, 5. Aggrieved assessee preferred appeal before ld.CIT(A) but failed to succeed. Now the assessee is in appeal before this Tribunal. 6. We have heard ld. DR and perused the record placed before us. Addition for unexplained investment of Rs.44.00 lakh has been raised before us by the assessee. We observe that the assessee is employed with M/s. Sudhir Agencies. Proprietor Chhaya Mantri who is assesssee’s wife and for the year under consideration salary of Rs.13.00 lakh has been received. In the preceding years salary of Rs.7.00 lakh, Rs.15.00 lakh and Rs.12.00 lakh has been received as salary and duly offered to tax in the income-tax return. However, the salary given to the assessee is not encashed fully within the year and major portion of salary gets accumulated in the books of M/s.Sudhir Agencies, of which assessee’s wife Chhaya Sudhir Mantri is sole proprietor. Printed from counselvise.com ITA No.526/PUN/2025 Sudhir Ramchandraji Mantri 3 Now such accumulated balance from salary receivable, the assessee kept on receiving interest year by year. For the year under consideration, assessee has received interest on such accumulated balance at Rs.5,37,871/- . Ld. AO has raised suspicion about the source of investment on which such interest income has been received. We fail to find any justification in the action of the AO as well as the finding of ld.CIT(A) because the assessee has been showing the salary income on year to year basis. Accumulated amount of salary income available with M/s.Sudhir Agencies is also giving interest income on year to year basis. All transactions are duly recorded in the books. M/s.Sudhir Agencies has declared income u/s.44AD of the Act. Under these given facts and circumstances, since the source of investment giving raise to the interest income has been duly explained, we fail to find any justification in the addition of Rs.44.00 lakh made u/s.69 of the Act. The same is hereby deleted. Finding of ld.CIT(A) is set aside the grounds of appeal raised by the assessee on merits are allowed. Remaining ground are either general/consequential in nature which need no adjudication. 7. In the result, the appeal filed by the assessee is allowed. Order pronounced on this 03rd day of September, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 03rd September, 2025. Satish Printed from counselvise.com ITA No.526/PUN/2025 Sudhir Ramchandraji Mantri 4 आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "