SAGAR DHANSHUKKUMAR INTADIA,SURAT vs. ITO, WARD 3(3)(4), SURAT

ITA 561/SRT/2025Status: DisposedITAT Surat27 July 2026AY 2016-175 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the matter back to the Assessing Officer to decide the issue afresh after affording the assessee an opportunity to produce relevant documents and evidence. The assessee is directed to produce all supporting evidence for their claim.

What were the facts?

The assessee's return of income was selected for limited scrutiny to verify the cash in hand. The Assessing Officer added the closing cash balance of Rs. 37,37,962/- as unexplained cash credit under Section 68 for failure to produce evidence.

What were the issues?

Whether the closing cash balance can be added as unexplained cash credit without providing sufficient opportunity to the assessee to produce evidence. Whether the addition should be taxed under normal slab rates or Section 115BBE.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(2),Section 142(1),Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH SMC, SURAT

Before: Shri T. R. Senthil Kumar & Shri Ratnesh Nandan Sahay

For Appellant: Shri V I Rudalal, A.R. with Shri Rushi Parekh, C.A
For Respondent: Ms. Neerja Sharma, Sr.DR
Hearing: 07/05/2026Pronounced: 27/07/2026

PER: RATNESH NANDAN SAHAY, AM:

1.

This is an appeal filed by the assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi [In short, ‘the ld. CIT(A)’] dated 05/03/2025 for the assessment year (AY) 2016-17 wherein the assessee has raised following grounds of appeal:

"

1.

That CIT(A) has erred in confirming addition of Closing cash balance shown in ITR of Rs.37,37,962/- as unexplained cash credits u/s-68 of I.T. Act, 1961. 2. That the learned A.O. has erred in taxing the addition by taking the rate @ 35.54% by attracting S. 115BBE instead of taxing as per normal tax slab. The addition

The order continues below.

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