SHAISHAV SHIRISHKUMAR PARIKH,DAHOD vs. DCIT/ACIT ANAND CIRCLE, ANAND, ANAND

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 14.01.2026 for the Assessment Year (A.Y.) 2017-18 in the proceeding u/s 143(3) of the Income Tax Act [hereinafter referred as “the Act”].

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scrutiny under CASS. In the course of assessment, the AO noticed that the assessee had made cash deposit of Rs.90,99,000/- in his bank accounts during the demonetisation period from 09.11.2016 to 13.12.2016. The AO was not satisfied with the explanation of the assessee regarding the source of cash deposits. Therefore, the entire cash deposit of Rs. 90,99,000/- was treated as unexplained and added to income. Further, the AO had also made addition of Rs. 53,87,716/- on account of bogus creditors and Rs. 77,526/- on account of disallowance of depreciation on car. The assessment was completed u/s. 143(3) on 30.12.2019 at total income of Rs. 2,10,85,740/-.

Violation of Principle of Natural Justice: 1) The learned CIT(A) erred in fact and in law in passing the order against the principle of natural justice 2) The learned CIT(A) erred in fact and in law by not providing a proper and adequate opportunity to the Appellant before passing the assessment order. 3) The learned CIT(A) has erred both in law and on facts in passing the impugned order and confirming the addition made by the Assessing Officer without properly considering the submissions and evidences filed by the appellant during the appellate proceedings, and has incorrectly observed that the appellant failed to furnish any submissions. Without prejudice to the above:

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Addition 4) The learned CIT(A) has erred in law and on facts in confirming the addition of Rs.90,99,000/-made by the Assessing Officer under section 68 of the Act on account of cash deposits, without properly appreciating the facts of the case. The learned CIT(A) failed to consider that the said transactions were duly recorded in the regular books of account of the appellant, which are audited, and therefore the addition so made is unjustified and liable to be deleted. 5) The learned CIT(A) has erred both in law and on facts in upholding the levy of tax under section 115BBE on an amount of Rs.90,99,000/-, without appreciating that the impugned transactions were duly recorded in the books of account of the appellant and were neither unexplained nor unaccounted. 6) The learned CIT(A) erred in confirming the addition of Rs. 53,87,716/- made by AO as a bogus creditor without considering the facts as advance payment made by them in respect of purchase of land from the appellant 7) The learned CIT(A) erred in confirming the addition of Rs. 77,526/- made by AO as a Disallowance of depreciation of motor car @20% without considering the fact that the motor car being used for office only and not for hiring business. Initiation of penalty: 8) The learned CIT(A) erred in law in confirming the action of the AO of initiating the penalty u/s 271AAC which is bad in law and liable to be quashed. Other Grounds Your Appellant craves the right to add to or alter, amend, substitute, delete or modify all or any of the above grounds of appeal any time before or at the time of hearing.

ITA No.1064/Ahd/2026 Shaishav Shirishkumar Parikh Vs DCIT/ACIT, AY- 2017-18 4 rectify this mistake in the order and also to consider the submissions already available on record before him. The Ld. AR submitted that even on merits, the addition for the cash deposits was not correct as the assessee had opening cash balance of Rs. 47,64,006/-, which was not considered by the AO and the set-off for the same was not allowed. He further submitted that the issue of the opening balance was duly examined by the AO in the course of assessment proceeding for the A.Y. 2016-17. The other issues were also not considered on merits. The Ld. AR, therefore, requested that the matter may bet set aside to the file of Ld. CIT(A) with a direction to allow another opportunity of being heard to the assessee and also to consider the materials already filed before him and, thereafter, adjudicate the grounds taken by the assessee on merits.

ITA No.1064/Ahd/2026 Shaishav Shirishkumar Parikh Vs DCIT/ACIT, AY- 2017-18 5 the mistake apparent from record in his order dated 14.01.2026. The assessee has also filed a copy of the assessment order for the A.Y. 2015- 16 in the paper-book, from which it is found that the assessee had disclosed cash in hand of Rs. 47,64,006/- in his Income Tax Return, which was verified and accepted by the AO. Considering this fact, the addition for the total cash deposit of Rs.90,99,000/- made by the AO, without allowing any set-off for the cash in hand of the assessee, was also not justified. According to the assessee, the other issues were also not considered on merits. In the interest of justice, therefore, we deem it proper to set aside the matter to the file of the Ld. CIT(A) with a direction to allow another opportunity to the assessee to make compliance and, thereafter, adjudicate all the grounds taken by the assessee on merits. The assessee will be free to re-submit the evidences already filed earlier or any other fresh material in support of the grounds taken by him, before the Ld. CIT(A) and will also comply to his directions. If deemed necessary, the Ld. CIT(A) may also call for a remand report of the AO on the additional evidences brought on record before him and, thereafter, re- adjudicate the grounds taken by the assessee, on merits.

Order pronounced in the Court on 06/07/2026 at Ahmedabad.

Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 06th July, 2026 Neelesh, Sr. PS (True Copy)

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आदेश क� आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A) 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड� फाईल /Guard file. आदेशानुसार/BY ORDER, आदेशानुसार आदेशानुसार आदेशानुसार पंजीकार (Dy./Asstt.Registrar) उप उप/सहायक उप उप सहायक सहायक पंजीकार सहायक पंजीकार पंजीकार आयकर आयकर अपीलीय आयकर आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, अहमदाबाद अिधकरण अहमदाबाद अहमदाबाद / ITAT, Ahmedabad अहमदाबाद