DILIP PRASAD ACIT CENTRAL CIRCLE 1(3), AHMEDABAD, AHMEDABAD vs. GORDHANBHAI BABALDAS PATEL, MEHSANA

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ITSSA 173/AHD/2024Status: DisposedITAT Ahmedabad14 May 2026AY 2019-2094 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that for the issue concerning the deletion of addition under Section 69A on account of alleged on-money received for land at Godhavi (Issue 1), the Revenue's appeals were allowed for statistical purposes. For the issue regarding the validity of the assessment order under Section 153A due to alleged non-compliance with Section 153D (Issue 2), the assessee's grounds were dismissed as covered against the assessee by a previous decision of the Ahmedabad Tribunal in the case of Smt. Neelu Sanjay Gupta. Regarding the addition of seized cash of Rs. 9,50,000/- under Section 69A (Issue 3), the Tribunal restored this issue to the file of the Ld. CIT(A) for de-novo consideration, granting the assessee liberty to present arguments and supporting documents. The Tribunal also noted that appeals in the assessee's case for A.Ys. 2019-20 and 2020-21 had been restored to the file of the Ld. CIT(A) for de-novo consideration, implying a similar approach for related issues.

What were the facts?

These appeals and cross-objections involve multiple assessees, including Dilip Prasad, Alap Somabhai Patel, Dahiben Somabhai Patel, Amrutbhai Babaldas Patel, Mita Sanjay Sheth, Nima Somabhai Patel, Gordhanbhai Babaldas Patel, Amathabhai Bababhai Patel, Sonal Rajesh Khandwala, and Chandubhai Babaldas Patel, and the Revenue (Assistant Commissioner of Income Tax, Central Circle-1(3), Ahmedabad). The assessment years under consideration are 2019-20, 2020-21, and 2021-22. The matters arise from search and seizure actions conducted on the 'Popular Group Ahmedabad'. The appeals and cross-objections were filed after a minimal delay, which was condoned. The primary dispute revolves around additions made by the Assessing Officer (AO) and deletions made by the Commissioner of Income Tax (Appeals) (CIT(A)).

What were the issues?

1. Whether the CIT(A) erred in deleting the addition of Rs. 3,55,69,687/- made by the AO under Section 69A of the Income Tax Act, 1961, on account of alleged on-money received by the assessee towards his share in the sale of non-agricultural land at Godhavi to a builder group? (Revenue's contention: The deletion ignored incriminating documents found during the search and the AO's analysis. Assessee's contention: The AO did not conduct independent inquiries from the purchaser and passed the assessment order without valid approval under Section 153D). 2. Whether the assessment order passed under Section 153A of the Act is non-est, bad in law, null, void, and without jurisdiction for non-compliance with Section 153D of the Act, specifically regarding the requirement of application of mind for approval? (Assessee's contention: The approval was mechanical and not after due application of mind). 3. Whether the CIT(A) erred in confirming the addition under Section 69A of the Act in respect of seized cash of Rs. 9,50,000/-, which the assessee claimed to be explained as pin-money, family savings, and funds kept for donation activities? (Assessee's contention: The cash is explained and should be deleted).

Which sections of the Income-tax Act were involved?

Section 69A,Section 153D,Section 133(6),Section 131,Section 153A,Section 139(1),Section 132

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SHRI SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Darshan B. Gandhi, Advocate
For Respondent: Shri Rignesh Das, CIT-DR
Hearing: 07.05.2026Pronounced: 14.05.2026

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,

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

1.

Date of dictation 08&11.05.2026 (Dictated on dragon software) 2. Date on which the typed draft is placed before the Dictating Member 13.05.2026 3. Other Member………………… 4. Date on which the approved draft comes to the Sr.P.S./P.S 14.05.2026 5. Date on which the fair order is placed before the Dictating Member for pronouncement 14.05.2026 6. Date on which the fair order comes back to the Sr.P.S./P.S 14.05.2026 7. Date on which the file goes to the Bench Clerk 14.05.2026 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Dispatch of the Order……………………………………

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