JALPA NILESH SHETH,MUMBAI vs. INCOME TAX OFFICER, WARD 27(1)(5), MUMBAI, MUMBAI
| आयकर अपीलीय अिधकरण ायपीठ, मुंबई |
IN THE INCOME TAX APPELLATE TRIBUNAL
“F” BENCH, MUMBAI
BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT
&
SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER
I.T.A. No. 4446/Mum/2025
Assessment Year: 2017-18
Jalpa Nilesh Sheth
Office No. 412-413, Bhaveshwar Arcade
Annex, LBS Road
Behind Saraswat Bank Ltd.
Ghatkopar (West)
Mumbai - 400086
[PAN: AHAPS1728C]
Vs
Income tax Officer, Ward –
27(1)(5), Mumbai
अपीलाथ/ (Appellant)
यथ/ (Respondent)
Assessee by:
Shri Rakesh Joshi, A/R
Revenue by:
Ms. Kavitha Kaushik (Sr. D/R) (virtually appeared)
सुनवाई की तारीख/Date of Hearing : 16/10/2025
घोषणा की तारीख /Date of Pronouncement : 24/10/2025
आदेश/O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assesse is preferred against the order dated
30/05/2025 by NFAC, Delhi [hereinafter “the ld. CIT(A)]” pertaining to AY 2017-18. 2. The grievance of the assessee read as under:-
“1. On the facts and circumstances of the case as well as in law, the Learned
CIT(A) has erred in confirming the action of the Learned Assessing Officer in reopening the case u/s.147 of the Income Tax Act, 1961, without considering the facts and circumstances of the case.
2. On the facts and circumstances of the case as well as in law, the Learned
CIT(A) has erred in confirming the action of the Learned Assessing Officer in making an addition of Rs.1,00,00,000/- u/s. 69 of the income Tax Act, 1961 as alleged unexplained investment on the plea that the appellant has paid cash towards purchase of property, without considering the facts and circumstances of the case.
3. On the facts and circumstances of the case as well as in law, the Learned
CIT(A) has erred in confirming the action of the Learned Assessing Officer in invoking the provision of section 115BBE of the income Tax Act, 1961, without considering the facts and circumstances of the case.
4. On the facts and circumstances of the case, the Learned CIT(A) as well as the Learned Assessing Officer has erred in not providing the opportunity of cross examination to M/s. Sumeet developers, without appreciating the fact and circumstances of the case.
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The appellant craves leave to add, amend, alter OR DLEETE the said ground of appeal.”
The assesse has also raised the following additional grounds:- “1) On the facts and circumstances of the case as well as in Law, the Learned Assessing Officer has erred in passing the Assessment order u/s. 143(3) r.w.s 147 of the Income Tax Act, 1961, without considering the relevant provision of section 153C of the Income Tax Act, 1961, and the recent judgement of Hon'ble Juri ictional Bombay High Court in the case of Sejal Jewellary v. Union of India, 171 taxmann.com 846.”
Representatives were heard at length. Case records carefully perused and the relevant documentary evidence brought on record, duly considered in the light of Rule 18(6) of ITAT Rules, 1963. 5. Briefly stated the facts of the case are that the assessee filed her return of income on 30/07/2017 declaring total income of Rs. 10,49,720/-. The return was processed u/s 143(1) of the Act but no scrutiny assessment was thereafter done. 6. As per the information received from ACIT, Central Circle-2, Thane, the AO came to know that the assessee during the year under consideration has made investment in property part of which has been paid in cash. Accordingly, the case of the assessee was reopened within the meaning of Section 147 of the Act and accordingly statutory notices were issued and served upon the assessee. The assessee filed the return of income pursuant to the notice u/s 148 of the Act. As per the information, one excel-sheet was found from the searched persons which contained a list of the owners’ of godown no. GA3. The same is exhibited at page 3 of the assessment order. At page 4, a detailed chart is also exhibited, which is as under:-
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The assessee is the owner of Gala 8 and Gala 9, mentioned at serial nos. 5 & 6 above. Basis this information, the AO assumed that the assessee has paid cash of Rs. 1 Crore over and above the transaction value and made the impugned addition which has been confirmed by the ld. CIT(A). 8. On perusal of the documents brought to our notice in the paper book, we find that the sale deed is for a consideration of Rs. 81.25 Lakhs on which stamp duty of Rs. 3.25 Lakhs has been paid. The ledger account in the books of the searched persons Sumeet Developers, read as under:- 9. There is a separate construction agreement which is placed at pages 57 to 70 of the paper book in which the invoices of Sumeet
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Developers for Gala 8 amounts to Rs. 27.75 lakhs which is at page 63
and for Gala 9, the invoice value is Rs. 27.75 lakhs which is at page 70 of the paper book.
10. The above documentary evidence clearly shows that the information basis which the assessment has been made is clearly wrong on facts as the figures therein do not match with the actual figures of transactions/agreement. Considering the entire assessment order, we are of the considered view that the AO has been simply carried away with the excel-sheet found from the searched person without verifying the figures from the documents available on record. It appears that the entire addition has been made on assumption and surmises, which is not permissible.
11. Considering the facts in totality, we do not find any merit in the impugned addition and direct the AO to delete the same. Since we have deleted the additions, the other issues raised by the assessee are left open.
12. In the result, appeal of the assessee is allowed.
Order pronounced in the Court on 24th October, 2025 at Mumbai. (SAKTIJIT DEY)
ACCOUNTANT MEMBER
Mumbai, Dated 24/10/2025
*SC SrPs
*SC SrPs
*SC SrPs
*SC SrPs
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आदेश की ितिलिप अेिषत/Copy of the Order forwarded to :
अपीलाथ / The Appellant 2. थ / The Respondent 3. संबंिधत आयकर आयु" / Concerned Pr. CIT 4. आयकर आयु")अपील (/ The CIT(A)- 5. िवभागीय ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file.
आदेशानुसार/ BY ORDER