GORDHANBHAI MODI,AHMEDABAD vs. ITO.WD-3(2)(1), AHMEDABAD , AHMEDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD ] ] Before Shri Sanjay Garg, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member आयकर अपील सं /ITA No.1065/Ahd/2026 िनधा�रण वष� /Assessment Year : 2023-24 Gordhanbhai Modi, ITO Prop. Ratnadip Jewellers, 4, Smruti बनाम/ Ward-3(2)(1), v/s. Shopping Center, Vrundavan Ahmedabad Building Bus Stop, Ghodasar, Ahmedabad-380050 �थायी लेखा सं./PAN: AIGPM2907A (अपीलाथ�/ Appellant) (�� यथ�/ Respondent)

Assessee by : Shri S. N. Divatia, AR & Shri Samir Vora, AR Revenue by : Shri Arvind Kumar Namdeo, Sr. DR सुनवाई की तारीख/Date of Hearing : 29/07/2026 घोषणा की तारीख /Date of Pronouncement: 05/08/2026 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), [hereinafter referred to as ‘Ld. CIT(A)’], National Faceless Appeal Centre (in short “NFAC”), Delhi dated 02/03/2026 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2023-24.

ITA No.1065/Ahd/2026 Gordhanbhai Modi vs. ITO Asst.Year 2023-24 2 3. The brief facts of the case are that a search and seizure action u/s 132 of the Act was carried out in the case of M/s Tirth Gold on 13.09.2023. During the course of search action, certain accounting software was found in the computer of the searched person, wherein, certain accounted and certain unaccounted transactions were noted. Transactions to the extent of Rs. 43,04,018/- were found recorded in the column meant for unaccounted transactions, whereby, the assessee had purchased the Gold for the aforesaid amount from the said party. On the basis of the said data recovered from the computer of the searched person M/s Tirth Gold, the AO for the assessee observed that the assessee had entered into unaccounted purchases to that extent and accordingly, made the addition of the said amount to the income of the assessee on account of unexplained expenditure in the case of bogus purchases. The Ld. CIT(A) confirmed the addition so made by the AO.

ITA No.1065/Ahd/2026 Gordhanbhai Modi vs. ITO Asst.Year 2023-24 3 had made purchases only to the extent of Rs. 20,038/- from the said concern, which were duly recorded in the books of accounts of the assessee. However, the AO did not agree with the aforesaid contention of the assessee and observed that in the computer software found from the searched person, the unaccounted transactions were recorded in the name of the assessee.

5.1 It is to be noted here that in the statement recorded of Shri Pradip Puroshottambhai Bhuva, partner of Tirth Gold Ltd., though, he had admitted that he was involved in certain unaccounted transactions, however, neither he was put any question regarding the transactions with the assessee nor he has specifically admitted in his statement about the unaccounted transactions with the assessee. Though, the said M/s Tirth Gold, might be involved in recording unaccounted sales in the name of some persons, but that, in itself, is not enough to give an adverse finding against the assessee, especially, when the assessee has specifically denied having entered into any such transaction. Moreover, neither any trail of cash nor of any excess stock etc. has been found nor there is any allegation of assessee having made any unaccounted sales out of unaccounted purchases. Moreover, M/s Tirth Gols has given subsequently a statement that as per its record, the assessee had made purchases to the extent of Rs. 20,038/- only. Moreover, the assessee has not been given any opportunity to cross-examine the said Mr. Pradeep Purushottambhai Bhuva. The AO has observed that the assessee has failed to prove that the assessee has not entered into any unaccounted transaction. However, we are of the view that such an expectation from

ITA No.1065/Ahd/2026 Gordhanbhai Modi vs. ITO Asst.Year 2023-24 4 the assessee to prove the negative i.e. he has not done any such transaction, is very difficult as such unaccounted transactions can be proved only by positive evidence. In the case of the assessee, there is total lack of evidence, of assessee having entered into any such bogus transaction. Therefore, in our view, the impugned additions is not sustainable and the same is, accordingly, ordered to be deleted.

Order pronounced in the Open Court on 05/08/2026.

Sd/- Sd/- (Narendra Prasad Sinha) (Sanjay Garg) Accountant Member Judicial Member

अहमदाबाद/Ahmedabad, िदनांक/Dated 05/08/2026 Tanmay, Sr. P.S. TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��थ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु� अपील ( ) / The CIT(A)-(NFAC) 5. िवभागीय �ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद /DR,ITAT, Ahmedabad. , , 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad