PANKAJKUMAR MAGANLAL BABARIA,RAJKOT vs. THE DCIT/ACIT-2(1), RKT, RAJKOT

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. 561/RJT/2025 [ �नधा�रण वष�/Assessment Year: 2017-18 ] Pankajkumar Maganlal Babaria THE DCIT/ACIT-2(1), Kalawad road, New Collegewadi Main Income-tax Office, New Aayakar Vs. Road, Rajkot-360005, Gujarat Bhawan, Vatiaka, Rajkot-360001, Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: ACDPB4357L (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri D. M. Rindani, Ld. AR Respondent by : Shri Ganesh Iyer, Ld. Sr. DR Date of Hearing : 04/08/2026 Date of Pronouncement : 05/08/2026

:: ORDER :: Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2017-18, 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 [hereinafter referred to as ‘NFAC’], dated 27.08.2025, which in turn arises out of an order passed by assessing officer u/s. 143(3) of the Act, dated 16.12.2019. 02. Brief facts of the case are that the assessee filed its return of income for the assessment year under consideration declaring a total income of Rs.2,41,67,540/-. The assessment was completed under section 143(3) of the Income-tax Act, 1961, determining the total income at Rs.3,12,27,540/- after making an addition of

ITA No. 561/RJT/2025 Pankajkumar M. Babariya Rs.70,50,000/- under section 68 of the Act on account of unexplained unsecured loans. 03. Aggrieved by the assessment order, the assessee preferred an appeal before the Ld. Commissioner of Income-tax (Appeals). During the appellate proceedings, the assessee substantially complied with the notices issued by the Ld. CIT(A). However, one of the notices issued prior to the disposal of the appeal was not duly complied with. After considering the material available on record, the Ld. CIT(A) confirmed the addition of Rs.70,50,000/- under section 68 of the Act and dismissed the appeal. 04. At the time of hearing, the Ld. AR submitted that the assessee had obtained unsecured loans from 26 parties. Complete details in respect of 22 parties were furnished before the Assessing Officer. However, in respect of the remaining four creditors, the requisite details could not be furnished within the time allowed, as the relevant information was not received from those creditors. Consequently, the Assessing Officer treated the loans aggregating to Rs.70,50,000/- as unexplained cash credits under section 68 of the Act. 05. The Ld. AR further submitted that during the appellate proceedings before the Ld. CIT(A), the assessee had furnished substantial documentary evidence in support of the genuineness, identity and creditworthiness of the four creditors. However, according to the Ld. AR, those documents were not considered while deciding the appeal. It was, therefore, prayed that the matter may either be decided on the basis of the additional evidence or restored to the file of the Ld. CIT(A) for fresh adjudication. 06. The Ld. DR supported the orders of the lower authorities.

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ITA No. 561/RJT/2025 Pankajkumar M. Babariya 07. We have heard the rival submissions and perused the material available on record. It is an admitted position that the assessee could not furnish certain documents before the Assessing Officer during the assessment proceedings in respect of four creditors. It is also the contention of the Ld. AR that the relevant documentary evidence was subsequently filed before the Ld. CIT(A), but the same was not duly considered while deciding the appeal. Considering the totality of the facts and circumstances of the case, we are of the considered view that the issue requires fresh examination. Since the documentary evidence relied upon by the assessee has not been properly examined at the appellate stage.

Order pronounced in the open court on this 5th day of August, 2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot िदनांक/ Date: 05/08/2026 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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