AARNIK RAJENDRA SHAH,AHMEDABAD vs. INCOME TAX OFFICER, WARD 1(2)(1), AHMEDABAD

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ITA 2623/AHD/2025Status: DisposedITAT Ahmedabad21 May 2026AY 2022-234 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal admitted additional evidence filed by the assessee and restored the matter to the Assessing Officer for fresh examination. The AO is directed to verify the new evidence and decide the issue afresh.

What were the facts?

The Assessing Officer made an addition of Rs. 51,80,000 under Section 68 as unexplained cash credits, stating the assessee failed to provide documentary evidence for loans and adjustments. The CIT(A) confirmed this addition.

What were the issues?

Whether the assessee's failure to furnish documentary evidence before lower authorities warrants confirmation of unexplained cash credit additions, and if additional evidence should be admitted for fresh verification.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: Ms SUCHITRA KAMBLE & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Divya S Agarwal, with Shri S V Agarwal, ARs
For Respondent: Shri Abhijit, Sr. DR
Hearing: 19.05.2026Pronounced: 21.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE Ms SUCHITRA KAMBLE, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER I.T.A. No.2623/Ahd/2025 (Assessment Year: 2022-2023) Aarnik Rajendra Shah, The Income Tax Officer, Vs. A-703, 3rd Eye Residency One, Ward 1(2)(1), Opp. Sangath 2, Ahmedabad. Nr. SPG Stadium Ahmedabad-380005. [PAN :CCTPS2101 K] (Appellant) .. (Respondent) Appellant by : Shri Divya S Agarwal, with Shri S V Agarwal, ARs Respondent by: Shri Abhijit, Sr. DR Date of Hearing 19.05.2026 Date of Pronouncement 21.05.2026 O R D E R PER SUCHITRA KAMBLE, JUDICIAL MEMBER:-

This appeal is filed by the Assessee against the appellate order dated 17.10.2025 passed by the National Faceless Appeal Centre(NFAC), Delhi, relating to the Assessment Year 2022-23.

2.

The assessee has raised the following grounds of appeal:

1.

Hon’ble CIT(A), NFAC has erred in confirming the addition of Rs.51,80,000 made by Ld.AO u/s.68 of the Act. In as much as, Rs.51,80,000 comprises Rs.43,00,000 adjusting entries and Rs.3,80,000 and Rs.5,00,000 are loans received from friends and relatives.

ITA No. 2623/Ahd/2025 Asst. Year : 2022-23 - 2– 2. The assessee has made the submissions of source of credits before Ld.AO and Hon’ble CIT(A), NFAC as per advise of his AR. But in absence of proper advice from AR, the assessee did not furnish evidences of these credits before lower authorities. In absence of proper advice of AR, the assessee should not suffer on the ground of natural justice and the evidences filed in paper book of additional evidences may please be appreciated.

3.

The assessee is an individual and filed his return of income on 06.07.2022 for Assessment Year 2022-23 declaring total income of Rs.4,27,630/-. The case was selected for complete scrutiny assessment. After issuance of statutory notices and considering the submissions filed by the assessee, the assessment was completed by making addition of Rs.51,80,000/- under section 68 of the Act as unexplained cash credits. During the course of assessment proceedings, the assessee explained that Rs.43,00,000/- represented adjustment entries and Rs.3,80,000/- and Rs.5,00,000/- represented loans received from two individuals. However, according to the Assessing Officer, the assessee failed to substantiate the explanation with supporting documentary evidence and failed to establish the identity, creditworthiness and genuineness of the transactions. Accordingly, the entire amount of Rs.51,80,000/- was treated as unexplained cash credit under section 68 of the Act and added to the total income of the assessee.

4.

Aggrieved by the assessment order, the assessee preferred appeal before the Ld.CIT(A)/NFAC. The Ld.CIT(A), after considering the material available on record, confirmed the addition made by the Assessing Officer.

ITA No. 2623/Ahd/2025 Asst. Year : 2022-23 - 3– 5. During the course of hearing before us, the Ld. AR submitted that the assessee could not furnish proper documentary evidences before the lower authorities due to the circumstances beyond his control. The Ld. AR further submitted that the assessee is now in a possession of additional evidences including confirmations, bank statements and supporting documents to establish the nature and source of the impugned credits. It is therefore prayed that the additional evidences may kindly be admitted in the interest of justice and the matter may be restored to the file of the Assessing Officer for fresh examination.

6.

The Ld. Departmental Representative (DR) relied upon the assessment order and the order of the Ld. CIT(A).

7.

We have heard the rival submissions and perused the material available on record. It is observed that the addition under section 68 of the Act has been made primarily on the ground that the assessee failed to establish the identity, creditworthiness and genuineness of the transactions by furnishing supporting documentary evidences. Before us, the assessee has filed additional evidences and has submitted that the same could not be furnished earlier before the lower authorities. Considering the facts and circumstances of the case and in the interest of substantial justice, we are of the view that the additional evidences deserve to be admitted. Since these evidences require proper verification and examination at the end of the Assessing Officer, we deem it appropriate to restore the matter back to the file of the Assessing Officer. Accordingly, the Assessing Officer is directed to examine the additional evidences filed by the assessee and adjudicate the issue afresh in accordance with law after providing adequate

ITA No. 2623/Ahd/2025 Asst. Year : 2022-23 - 4– opportunity of being heard to the assessee. Needless to say that assessee shall fully cooperate and furnish all necessary details and documentary evidences as called for by the Assessing Officer. The assessee shall comply with the notices issued by Assessing Officer without seeking unnecessary adjournments.

8.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

The order is pronounced in the open Court on 21.05.2026.

Sd/- Sd/- (NRENDRA PRASAD SINHA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER (True Copy) (True Copy) (True Copy) Ahmedabad; Dated 21.05.2026 MV 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)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy

सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

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