MARUTI BUILDERS,AHMEDABAD vs. THE I.T.O. WARD-7(2)(1), AHMEDABAD

ITA 2308/AHD/2026Status: DisposedITAT Ahmedabad09 September 2026AY 2018-194 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that there was no material to substantiate that the cash deposits in the partner's account pertained to the assessee firm. Furthermore, the department had accepted the cash deposit as explained in the partner's assessment.

What were the facts?

The assessee firm declared Nil income. The AO added Rs. 12,00,000/- to the assessee's income, treating cash deposits in a partner's bank account as unaccounted cash credit. The CIT(A) dismissed the assessee's appeal.

What were the issues?

Whether cash deposits in a partner's bank account can be added to the assessee firm's income as an unexplained cash credit. Whether the addition is justified when the same amount was explained in the partner's assessment.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: SHRI NARENDRA PRASAD SINHA & SHRI SANJAY KUMAR

For Appellant: Shri Mehul K. Patel, Advocate
For Respondent: Shri Sachin Kumar, SR-DR
Hearing: 31.08.2026Pronounced: 09.09.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the Assessee against the order of National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”] dated 11.09.2025 for the Assessment Year (A.Y.) 2018-19 in the proceeding u/s 143(3) of the Income Tax Act [hereinafter referred as “the Act”].

2.

The brief facts of the case are that the assessee had filed its return of income for A.Y. 2018-19 declaring Nil income. The case was selected for complete scrutiny under CASS. In the course of assessment, the AO noticed that one of the partners of the assessee firm Rupalben Maruti Builders Vs ITO, AY- 2018-19 2 Miteshkumar Shah had introduced cap

The order continues below.

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