AKSHATKUMAR GAUTAMBHAI GANDHI,AHMEDABAD vs. INCOME TAX OFFICER WARD 6(1)(1), AHMEDABAD

PDF · subscribers
ITA 791/AHD/2026Status: DisposedITAT Ahmedabad17 June 2026AY 2017-184 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the cash deposits represented legitimate business receipts duly recorded in the assessee's books of account and declared in the VAT return. Therefore, no further addition was warranted.

What were the facts?

The assessee, an individual with business income, filed an income tax return declaring Rs. 7,61,420 for AY 2017-18. The Assessing Officer (AO) made an addition of Rs. 46,12,500 under Section 69A as unexplained money, despite the assessee providing supporting documents for cash deposits representing business receipts.

What were the issues?

Whether cash deposits in a bank account, which are recorded in the books of account and represent business receipts, can be treated as unexplained money under Section 69A.

Which sections of the Income-tax Act were involved?

Section 69A,Section 115BBE,Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

For Appellant: Shri Sunil Talati, AR
For Respondent: Shri Abhijit, Sr. DR
Hearing: 08.06.2026Pronounced: 17.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT & SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No.791/Ahd/2026 (Assessment Year: 2017-18) Akshatkumar Gautambhai The Income Tax Officer, Vs. Gandhi, Ward 6(1)(1) 13, Bvadudevnagar Soc., Ahmedabad. Sahibaug, Ahmedabad-380004.

[PAN :AYUPG5358 H] (Appellant) .. (Respondent) Appellant by : Shri Sunil Talati, AR Respondent by: Shri Abhijit, Sr. DR Date of Hearing 08.06.2026 Date of Pronouncement 17.06.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

This appeal is filed by the Assessee against the appellate order dated 15.01.2026 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2017-18.

2.

The assessee has raised the following grounds of appeal:

Your appellant is aggrieved by the order passed by the Ld. Commissioner of Income Tax (Appeals) [CIT(A)] National Faceless Appeal Centre (NFAC) u/s. 250 of the Income Tax Act, 1961 (the Act') presents this appeal against the same on the following amongst other grounds:

ITA No. 791/Ahd/2026 Asst. Year : 2017-18 - 2– 1. The Ld. CIT(A) has erred in confirming addition of Rs. 46,12,500/- u/s 69A of the Act being the cash deposit made in Bank Account without appreciating that the said deposits represent legitimate business receipts duly recorded in the books of account. It is therefore submitted that, the addition so made u/s 69A r.w.s 115BBE of the Act amounting to Rs. 46,12,500/- is prayed to be deleted. 2. The Order passed by the Ld. CIT(A) is bad in law and contrary to the provisions of law and facts. It is submitted that the same be held so now. 3. Your appellant craves leave to add, alter, and/or amend all or any of the grounds before the final hearing of the appeal. 3. The brief facts of the case are that assessee is an individual having income from Business and profession and filed return of income declaring income of Rs.7,61,420 for the AY 2017-18. Assessee received notice u/s 142(1) and complying with the same notice, assessee has submitted his reply with supportive document. However, AO has passed order u/s 143(3) making addition of Rs. 46,12,500 as unexplained money u/s 69A without considering appellant submission.

4.

Before us, the Ld.AR submitted that books of account for the AY 2017-18 were duly maintained, furnish all the details like copy of cash book, copy of Bank Statement, Copy of sale bills, and Copy of VAT return to prove and explained the genuineness of the transaction before the AO. However, AO has passed order by making addition of Rs 46, 12,500 as unexplained money u/s 69A without considering appellant submission. Further it is also submitted that AO has made addition u/s 69A as unexplained money even though all the transactions were duly recorded in appellant books of account and was also declared in income tax return filed for AY 2017-18 and also shown in VAT return filed for respective period. Further, cash received from retail sale transaction was deposited in bank account and from that

ITA No. 791/Ahd/2026 Asst. Year : 2017-18 - 3– payment was also made to supplier. We find that the Ld. CIT (A) has not gone through the issue in detail.

5.

On going through the cash book and the entire events, we find that the assessee is a small trader, depositing the trade receipts which are generally in cash in the bank account maintained by him on regular basis. The payments have also been made from this bank account for the purchases made by the assessee. The receipts pertaining to the sales have been duly taken into the total turnover of the assessee. Hence, upon examination of the evidences placed on record and considering that the cash deposits have been duly accounted for in the books of account, we hold that no further addition is warranted.

6.

In the result, the appeal of the assessee is allowed.

The order is pronounced in the open Court on 17.06.2026.

Sd/- Sd/- (RAHUL CHAUDHARY) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 17.06.2026 MV

ITA No. 791/Ahd/2026 Asst. Year : 2017-18 - 4– 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

More judgments on Section 69A

All 15,297 judgments and leading authorities on Section 69A →

Recent GST High Court judgments

Search GST case law →