TALSHIBHAI RAMJIBHAI GOTI,BHAVNAGAR V. INCOME TAX OFFICER, WARD 1(9), BHAVNAGAR, BHAVNAGAR

ITA 149/AHD/2025

AI Insights

This case involves an appeal by Talshibhai Ramjibhai Goti against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, for the Assessment Year 2017-18. The primary contention was regarding the additions made by the Income Tax Officer to the assessee's income, which included amounts received from Marwadi Shares and Finance Limited, bank interest, dividend income, and loans from family members. The Tribunal examined the documentary evidence provided, including bank statements and ledgers, and found that only a portion of the amounts added by the Revenue Authorities constituted taxable income, specifically the actual profits from securities transactions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707043 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 21-01-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURESH CHAND MEENA
• Assessee Lawyers: RAJESH C SHAH

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.149/Ahd/2025 (Assessment Year: 2017-18) Talshibhai Ramjibhai Goti, Nava Plot Area, Haliyad, Vallbhipur, Bhavnagar-364330. [PAN :AMGPG6996 F] Vs. Income Tax Officer, Ward-1(9), Bhavnagar. (Appellant) .. (Respondent) Appellant by : Shri Rajesh C Shah, AR Respondent by: Shri Suresh Chand Meena, Sr DR Date of Hearing 02.07.2025 Date of Pronouncement 09.07.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 22.11.2024 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2017-18. 2. Heard the arguments of both the parties and perused the material available on record. 2.1 The assessee received monies as under that have been proved by documentary evidences, which are not in dispute :- ITA No. 149/Ahd/2025 Talshibhai R Goti Vs. ITO Asst. Year : 2017-18 - 2– Sr. No. Particulars Amount of Credit (Rs.) Reference 1. Amount received from Marwadi shares and Finance Limited 5,37,487 Para No.3.1 2. Bank Interest Income 5,982 Para No.3.2 3. Dividend Income 1816 Para No.3.3 4. Exchange Traded Fund (ETF) 52,244 Para No.3.4 5. Loan received back 5,84,500 Para No.3.5 Copy of bank statement for the period under consideration is on record. 2.2 The details of the amount received from Marwadi Shares and Finance Limited are as under:- Sr.No. Date Amount(Rs.) 1. 26.04.2016 4,495.03 2. 27.07.2016 42,696.58 3. 11.08.2016 23,146.69 4. 07.09.2016 38,342.46 5. 04.02.2017 2,28,806.32 6. 01.03.2017 2,00,000.00 Total 5,37,487.08 2.3 Said amount can be verified from the bank statement as well as contra ledger account from the books of Marwadi Shares & Finance Limited. Copy of the bank statement and contra ledger of Mr. Talshibhai Rameshbhai Goti from the books of Marwadi Shares and Finance Limited are on record. 2.4 Further, under the head of Capital Gain, remaining amount Rs.3,37,487/-received from the share broker cannot be considered as an income since the entire amount received from the broker cannot be considered as an income. During the period under consideration, on ITA No. 149/Ahd/2025 Talshibhai R Goti Vs. ITO Asst. Year : 2017-18 - 3– account of the transactions made in securities, assessee has earned profit amounting to Rs. 39,005/-. Copy of the capital gain working is on record. Therefore, it is hereby held that the Revenue Authorities erred in making an addition of entire amount. 3. Further, we find the bank interest details which are as under: Sr.No. Date Amount(Rs.) 1. 02.05.2016 739.00 2. 01.08.2016 367.00 3. 02.11.2016 744.00 4. 02.11.2016 4132.00 Total 5,982.00 3.1 The amount received on account of dividend income is as under:- Sr.No. Date Amount(Rs.) 1. 09.08.2016 112.50 2. 03.10.2016 414.00 3. 15.11.2016 77.00 4. 27.01.2017 1,212.00 Total 1,815.50 3.2 On, 20.03.2024, the assessee has applied for CPSE ETF FFO wherein amount of Rs. 2,00,000/- was paid. However, on 29.03.2017, partial allotment was done and therefore, amount of Rs. 52,242.25/- was refunded back to the assessee. Therefore, it is nothing but the reversal entry and not the income. Therefore, it is hereby held that the Revenue Authorities erred in making an addition of entire amount. ITA No. 149/Ahd/2025 Talshibhai R Goti Vs. ITO Asst. Year : 2017-18 - 4– 4. With regard to the following credit entries amounting to Rs. 5,84,500/-, the assessee has submitted that the same are unsecured loan transactions with the family members, the details of which are under:- Sr.No. Date Name of family Member Amount(Rs.) 1. 26.04.2016 Davalben Goti 20,000.00 2. 04.03.2017 Nareshbhai T Goti 1,94,500.00 3. 04.03.2017 Arshit D Goti 1,95,000.00 4. 13.03.2017 Alpesh Goti 1,75,000.00 Total 5,84,500.00 4.1 Since the factum of receipt of loan from the family members has not been in dispute and keeping in view the low quantum received from each family member, we hold that no addition is called for. 5. The Assessing Officer made an addition amounting to Rs. 10,80,500/- on account of the cash deposited in the bank account. Out of Rs. 10,80,500/-, Rs. 10,55,500/- was deposited in the demonetization period. The assessee submitted that out of Rs. 10,55,500/-, amount of Rs. 7,25,500/- was received from his mother viz., Ambaben Ramjibhai Goti. Reason for depositing the amount of his mother into his bank account was that his mother had earned few amount by making job work since last few years and earned the income in the form of cash. She is aged around 80 years during the period under consideration. Since, the aggregate amount earned by mother during a year did not exceed the maximum amount not chargeable to tax, she has not filed her return of income. However, she had earned the same and saved the same. The assessee submitted that suddenly, demonetization was declared and she did not have any bank account in her name. Therefore, she asked to deposit the said amount in ITA No. 149/Ahd/2025 Talshibhai R Goti Vs. ITO Asst. Year : 2017-18 - 5– his bank account. The affidavit of Ambaben Ramjibhai Goti affirming the same is on record. Further, the remaining amount of Rs. 3,55,000/- stands to earlier year saving and current year Income. Hence, keeping in view the entire facts and circumstances specific to the instant case which cannot be taken as a precedence in any other case, the appeal of the assessee on this issue is hereby allowed. 6. In the result, the appeal filed by the assessee is allowed. The order is pronounced in the open Court on 09.07.2025. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 09.07.2025 MV देश 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, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "