SHITAL RAJESHKUMAR BHADIYADRA,SURAT vs. ITO, WARD-3(3)(1), SURAT

ITA 1256/SRT/2025Status: DisposedITAT Surat18 August 2026AY 2016-1711 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had discharged the burden under Section 68 by providing documentary evidence for the identity, creditworthiness, and genuineness of the loan transactions. Since the loans were received and repaid through banking channels with interest and TDS, and the repayment was not disputed, the addition was not sustainable.

What were the facts?

The Assessing Officer (AO) initiated reassessment proceedings under Section 147 based on information from a search that the assessee had availed a bogus loan of Rs. 70,00,000/-. The AO made an addition of Rs. 70,00,000/- under Section 68 r.w.s. 115BBE as unexplained cash credit.

What were the issues?

Whether the addition of Rs. 70,00,000/- as unexplained cash credit under Section 68 is sustainable when the loan was received and repaid through banking channels with supporting documentation.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI B.M. BIYANI

For Appellant: Shri Manish J Shah, AR
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 15.06.2026Pronounced: 18.08.2026

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first appeal dated 07.10.2025 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“Ld. CIT(A)”], which in turn arises out of the assessment-order dated 31.03.2025 passed by learned ITO, Ward-3(3)(1), Surat [“Ld. AO”] u/s 147 of Income-tax Act, Shital Rajeshkumar Bhadiyadra

1961 [“the Act”] for Assessment-Year [“AY”] 2016-17, the assessee has filed this appeal.

2.

The background facts leading to present appeal are such that the Ld. AO received an information, emanating from search proceeding conducted by authorities in the case

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →