RAMESHBHAI MAHERA,MAHISAGAR vs. THE ITO, WARD-1, LUNAWADA

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ITA 2118/AHD/2025Status: DisposedITAT Ahmedabad08 June 2026AY 2017-183 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee's relinquishment of his right in a house property for Rs. 7,51,000/- paid in cash by his brother, supported by an unregistered sale deed, explained the source of a portion of the cash deposit. Therefore, the addition to that extent was not sustainable.

What were the facts?

The assessee deposited cash of Rs. 29,69,991/- during AY 2017-18. The Assessing Officer added the entire amount as unexplained money. The CIT(A) partly allowed the appeal.

What were the issues?

Whether cash received for relinquishing rights in a property, evidenced by an unregistered sale deed, can be considered as unexplained money.

Which sections of the Income-tax Act were involved?

Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD ‘SMC’ BENCH, AHMEDABAD

Before: MS. SUCHITRA KAMBLE

For Appellant: Ms. Urvashi Sodhan, A.R
For Respondent: Shri Girish Parihar, Sr. DR
Hearing: 01.04.2026Pronounced: 08.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD ‘SMC’ BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.2118/AHD/2025 (Assessment Year: 2017-18) Mr. Rameshbhai Mahera, ITO, Ward-1, Lunawada Janta Colony, At & Po. Kothamba Income Tax Office, Tal. Kothamba, Lunawaada, 4th Floor, Dayalu Complex, Dist. Mahisagar, Above Subhecha Hospital, Vs. Gujarat – 389230 Modasa Road, Lunawada, Dist. Mahisagar, Gujarat -389230 PAN: ACWPM3964D (Appellant) : (Respondent) Assessee by : Ms. Urvashi Sodhan, A.R. Respondent by : Shri Girish Parihar, Sr. DR Date of Hearing : 01.04.2026 Date of Pronouncement : 08.06.2026 O R D E R PER : SUCHITRA KAMBLE, J M: The appeal filed by the assessee is against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short “Ld. CIT(A)”] dated 10.09.2025 for the Assessment Year (in short “AY”) 2017-18.

2.

The assessee has raised the following grounds of appeal: “1. Erred-in-law in confirming addition of 7,50,575/- as unexplained money U/s 69A of the Act. 2. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal.”

3.

The assessee is an individual and filed return of income on 17.01.2018 declaring total income at Rs.5,47,980/-. The case was selected for limited scrutiny. Notice u/s 143(2) of the Income Tax Act, 1961 (in short “the Act”) was

ITA No.2118/AHD/2025 Mr. Rameshbhai Mahera issued on 21.09.2018 and duly served upon the assessee. Statutory notices were issued to the assessee thereby calling upon details/explanation in respect of cash deposits made by the assessee during the year. The assessee filed reply on 20.02.2019. It was observed that the assessee has deposited aggregating cash of Rs.29,69,991/- during the AY 2017-18. The explanation given by the assessee was not accepted by the Ld. Assessing Officer (in short “Ld. AO”) and the Ld. AO made addition of Rs.29,69,991/- u/s 69A of the Act as unexplained money.

4.

Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee.

5.

The Ld. Authorised Representative (in short “Ld. AR”) for the assessee submitted that the assessee’s claim of the assessee to the extent of Rs.7,51,000/- from relinquishment of share in house property based only on an unregistered and self serving document without corroborative evidences is not justified as the assessee received the sale amount in cash for sale of his right in house property. The Ld. AR submitted that the assessee and his real brother had inherited house property and he has relinquished his right in the said property and vide unregistered sale deed dated 17.12.2016 for a consideration of Rs.7,51,000/- which was paid by his brother in cash. The assessee enclosed the unregistered sale deed. The remark of the Ld. AO that it is not a legal document but since the assessee has relinquished his right thereby acting as per the said unregistered document which is a bindingful contract as he and his brother accepted the terms of the written contract the same cannot be disregarded by the Ld. AO. The assessee has given the details of cash payment received from his brother. Therefore, these components should have been taken into account by the Ld. CIT(A).

6.

The Ld. Departmental Representative (in short “Ld. DR”) for the Revenue relied upon the assessment order and the order of the Ld. CIT(A).

7.

Heard both the parties and perused all the relevant materials available on record. It is pertinent to note that the assessee received his cash component ass the consideration for relinquishing his right in the said property which was

ITA No.2118/AHD/2025 Mr. Rameshbhai Mahera unregistered sale deed. The said sale deed categorically mentions in para 5 on page No.2 that the seller well executed a registered sale deed for property as and when required. Thus, the assessee has relinquished his full right despite sale deed not being registered. The assessee received the cash component from his brother, thus the fact remains that the assessee received the said amount from his brother. The assessee has given the details of the cash component and the very fact of the details establishes that the source of cash deposit was explained. These aspects were not taken into consideration either by the Ld. AO as well as by the Ld. CIT(A). Thus, the addition does not sustain.

8.

In the result, appeal of the assessee is allowed. Order pronounced in the open court on 08.06.2026

Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated: 08.06.2026 * Kishore, Sr. P.S. Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT- concerned 4. DR, ITAT, Ahmedabad 5. Guard File By order,

Assistant Registrar/Sr.PS/PS ITAT, Ahmedabad Bench

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