THE ASST.CIT., CENTRAL CIRCLE-1(2), AHMEDABAD V. SHRI MAHESHBHAI SHANTILAL PATEL, AHMEDABAD

ITA 13/AHD/2020

AI Insights

The case involves an appeal by the Revenue against the decision of the Commissioner of Income-tax (Appeals) which had deleted an addition of Rs. 1,44,79,800 made by the Assessing Officer (AO) on account of unexplained unaccounted cash receipts from undisclosed sources. The assessee, Maheshbhai Shantilal Patel, engaged in real estate investment, had his premises searched under Section 132 of the Income-tax Act, leading to the seizure of cash and shares. The AO added the unaccounted income based on entries in the cash book, which the CIT(A) later deleted. The Tribunal found that the CIT(A) had erred in deleting the addition without proper verification of the tax status of the amounts received from various persons for land purchases.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25147 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 1993-1994
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: WRITTEN SUBMISSION FILED
• Assessee Lawyers: YOGESH M ISHRA
• Keywords: Set aside; Income from undisclosed sources
• Section: 250; 132

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I.T.A. No. 13/Ahd/2020 (Assessment Year: 1993-94) Asstt. Commissioner of Income-tax, Central Circle-1(2), Ahmedabad Vs. Maheshbhai Shantilal Patel, B-202, Maruti Tower, Shiv Ranjani Cross Roads, Satellite, Ahmedabad [PAN : ABXPP 3026 F] (Appellant) .. (Respondent) Appellant by : written submission filed Respondent by: Shri Yogesh Mishra, Sr DR Date of Hearing 08.01.2025 Date of Pronouncement 10.03.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the Revenue against the order of the learned Commissioner of Income-tax (Appeals)-11, Ahmedabad (in short “the CIT(A)”) dated 09.10.2019 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\" for short], for Assessment Year (AY) 1993-94. 2. The grounds of appal raised by the Revenue are as follows:- “1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 1,44,79,800/- made by AO on account of unexplained unaccounted cash receipts from undisclosed source. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law and on facts in not appreciating the fact that the assessee was failed to prove identity and creditworthiness of the lender and genuineness of the transaction. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) ought to have upheld the order of the A.O. ITA No. 13/Ahd/2020 ACIT Vs. Shri Maheshbhai Shantilal Patel Asst. Year : 1993-94 - 2– 4. It is, therefore, prayed that the order of the Ld. CIT(A) be set aside and that of the A.O. be restored to the above extent.” 3. The brief facts of the case are that the assessee is an individual carrying on business of investment in real estate. He had filed his original return of income on 31.03.1995 declaring total income of Rs. 96,530/-. A search action u/s 132 of the Act was carried out at the residential and office premises of the assessee. There was seizure of cash of Rs. 10,000/- and shares worth Rs. 2,93,040/-. Cash of Rs. 1,50,000/- belonging to the assessee was also seized from the premises of Shri Vikrambhai P. Pandya. Subsequently, the Assessing Officer completed assessment on 09.07.2018 assessing total income at Rs. 1,58,50,530/-, making addition of Rs.1,44,79,800/- being unaccounted income from undisclosed sources on the basis of credit entries in the cash book. 4. Aggrieved, the assessee filed appeal before the Ld. CIT(A) who deleted addition of Rs.1,44,79,800/- against which the Revenue has filed the present appeal before the Tribunal. 5. Having gone through the entire record before us, we find that Assessing Officer made addition based on the seized papers reflecting actual receipts from various persons. The persons viz. Manoj Vadodaria, Natwarlal K. Patel AOP, Ved Prakash Chiripal have accepted having paid the amounts in purchase of land. From the details filed by the Revenue, we find that the assessee has paid taxes of Rs.16,44,539/- against the tax due of Rs.16,61,713/-, Shri Natwarlal Parekh paid Rs.23,94,477/- against the tax due of Rs. 44,77,920/- and Shri Natwarlal K. Patel AOP paid taxes of Rs.37,63,537/- against the tax due of Rs.38,08,339/-. However, the application filed before the Settlement Commission by these three ITA No. 13/Ahd/2020 ACIT Vs. Shri Maheshbhai Shantilal Patel Asst. Year : 1993-94 - 3– entities has been rejected and the matter has been referred to the Assessing Officer. It has not been brought on record whether these amounts been assessed to tax or not. The Ld. CIT(A) deleted the addition on the wrong premise that the amounts have been offered to tax and verified by the Department which is against the facts on record. Accordingly, the matter is restored to the file of Ld. CIT(A) to give a finding as to how the persons concerned have accepted the amounts belonged to them and whether the same have been offered to tax and due taxes have been paid on such amounts. 6. In the result, the appeal filed by the Revenue is allowed for statistical purposes. The order is pronounced in the open Court on 10.03.2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 10/03/2025 btk आदेश की \u0007ितिलिप अ\rेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0007 / The Appellant 2. \b\tथ\u0007 / The Respondent. 3. संबंिधत आयकर आयु\u0015 / Concerned CIT 4. आयकर आयु\u0015(अपील) / The CIT(A)- 5. िवभागीय \bितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड\u001f फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "