AMIT ASHWINBHAI TANDAN ,RAJKOT vs. INCOME TAX OFFICER, ASSESSMENT UNIT, I. T. DEPARTMENT, DELHI , DELHI

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ITA 802/RJT/2025Status: DisposedITAT Rajkot15 July 2026AY 2018-193 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal, following a coordinate bench's decision on identical facts, restricted the addition to 10% of the alleged on-money payment. The reduced addition is to be taxed under normal provisions, not Section 115BBE.

What were the facts?

The assessment was reopened under Section 147, and the Assessing Officer made an addition of Rs. 3,41,000/- under Section 69A for alleged cash payment ('on-money') for property purchase. The CIT(A) confirmed this addition.

What were the issues?

The validity of reassessment proceedings and the quantum of addition for alleged unexplained cash payment for property purchase.

Which sections of the Income-tax Act were involved?

Section 147,Section 69A,Section 115BBE,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Kalpesh Parekh, Ld. AR
For Respondent: Shri Ganesh Iyer, Ld. Sr. DR
Hearing: 13/07/2026Pronounced: 15/07/2026

आयकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member

आयकर अपील सं./ITA No. 802/RJT/2025 [ �नधा�रण वष�/Assessment Year: 2018-19 ] Amit Ashwinbhai Tandan Income Tax Officer, Assessment Unit, M/s K. P. Parekh & Co., Chartered I. T. Department, Delhi Vs. Accountants, C/o. Krushna House, 3rd Assessment Unit, Income Tax floor, B/h. Alishan flats, Near Raiya Department, Delhi-110001 Telephone Exchange, Rajkot - 360005, Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AGQPT6996E (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri Kalpesh Parekh, Ld. AR Respondent by : Shri Ganesh Iyer, Ld. Sr. DR

Date of Hearing : 13/07/2026 Date of Pronouncement : 15/07/2026

:: ORDER :: Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2018-19, is directed against the order under section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless Appeal Centre [in short ‘NFAC’], dated 15.10.2025, which in turn arises out of an assessment order passed by the Assessing Officer u/s 147 of the Act, dated 28.02.2024.

2.

The brief facts of the case are that the assessment was reopened under section 147 of the Income-tax Act, 1961. During the course of reassessment proceedings,

ITA No. 802/RJT/2025 Amit Ashvinbhai Tandan the Assessing Officer made an addition of Rs.3,41,000/- under section 69A of the Act on account of the alleged cash (“on-money”) payment made by the assessee for the purchase of a property in the Dream City Project developed by M/s Sixty Twenty Reality Private Limited. The said amount was treated as unexplained money and brought to tax accordingly.

3.

Aggrieved by the order of the AO assessee went in appal before Ld. CIT where Ld. CIT(A) confirmed the addition.

4.

Aggrieved, the assessee is in appeal before the Tribunal. At the time of hearing, the Ld. AR challenged the validity of the reassessment proceedings. Without prejudice to the legal ground, it was submitted that the assessee is a small salaried person earning his livelihood and, with a view to buying peace and avoiding prolonged litigation, is willing to offer 10% of the alleged on-money payment as additional income. It was further submitted that the issue is squarely covered by the order of the Coordinate Bench of the Tribunal in ITA No. 506/Rjt/2026, wherein, on identical facts and circumstances, the Tribunal restricted the addition to 10% of the alleged undisclosed investment. Accordingly, it was prayed that the addition may be restricted to 10% of Rs.3,41,000/-, i.e., Rs.34,100/-, and that the said amount be taxed under the normal provisions of the Act and not under section 115BBE.

5.

On the other hand, the Ld. DR fairly submitted that the issue is covered by the aforesaid decision of the Coordinate Bench.

6.

We have heard the rival submissions and perused the material available on record. Since the issue involved is identical to that considered by the Coordinate Bench of this Tribunal in ITA No. 506/Rjt/2026, and in view of the fair concession

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ITA No. 802/RJT/2025 Amit Ashvinbhai Tandan made by the assessee, we respectfully follow the said decision. Accordingly, we restrict the addition to Rs.34,100/-, being 10% of Rs.3,41,000/-, and direct the Assessing Officer to tax the said amount under the normal provisions of the Act and not under section 115BBE.

7.

Accordingly, the appeal of the assessee is partly allowed.

Order pronounced in the open court on this 15th day of July, 2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 15/07/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File By order //True Copy// Sr. Private Secretary ITAT, Rajkot

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