TUSHAR JAYANTIBHAI THAKKAR,PATAN vs. THE ITO, WARD-1, PATAN

ITA 28/AHD/2026Status: DisposedITAT Ahmedabad16 October 2026AY 2021-225 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the additions of Rs. 2,00,000/- and Rs. 11,52,771/- made under Section 69A of the Act were not warranted. Regarding the Rs. 2,00,000/- addition, the assessee had denied any transaction with M/s. Khavda Finance Ltd. and provided a signed confirmation letter from the company stating no financial transaction occurred, a fact not disputed by the Revenue. For the Rs. 11,52,771/- addition, the assessee had furnished detailed explanations along with ledger copies and relevant portions of bank statements for each credit entry, including amounts received from family members, friends, and exempt income. Since these transactions were routed through the bank account and evidence was produced before the revenue authorities, the Tribunal found no basis for the addition. Consequently, the additions were deleted, and the appeal was allowed.

What were the facts?

The assessee, Tushar Jayantibhai Thakkar, filed an appeal against the order of the CIT(A), NFAC, Delhi, dated 22.12.2025, for Assessment Year 2021-22. The appeal challenged the reassessment proceedings initiated under Section 147 and additions made under Section 69A. The Assessing Officer (AO) made an addition of Rs. 2,00,000/- based on an alleged transaction with M/s. Khavda Finance Ltd. and a further addition of Rs. 11,52,771/- for unexplained bank credits. These additions were confirmed by the CIT(A). The assessee contended that the reassessment conditions were not met and provided explanations and supporting documents for the additions.

What were the issues?

1. Whether the reassessment proceedings initiated under Section 147 of the Income-tax Act, 1961, were bad in law and void ab initio due to non-fulfillment of conditions for re-opening. 2. Whether the addition of Rs. 2,00,000/- as unexplained money under Section 69A was justified, considering the assessee's denial of any transaction with M/s. Khavda Finance Ltd. and submission of a confirmation letter. 3. Whether the addition of Rs. 11,52,771/- as unexplained credit entries in the bank account under Section 69A was justified, given the detailed explanations and supporting documents provided by the assessee for each credit entry. Assessee's Contentions: - The conditions for re-opening under Section 147 were not fulfilled. - There was no financial transaction with M/s. Khavda Finance Ltd., supported by a confirmation letter. - The bank credits totaling Rs. 11,52,771/- were explained through ledger copies, bank statements, and supporting documents, including receipts from wife, brother, friend/colleague, father of friend/colleague, and exempt income under Section 10(10BC). Revenue's Contentions: - The judgment records no specific arguments from the Revenue regarding the grounds of appeal.

Which sections of the Income-tax Act were involved?

Section 147,Section 69A,Section 250,Section 10(10BC)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-

For Appellant: Shri Paras F. Jain, CA
For Respondent: Shri Amit Pratap Singh, Sr. DR
Hearing: 14.09.2026Pronounced: 16.10.2026

This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as "CIT(A)" for short), dated 22.12.2025 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as "the Act" for short], for Assessment Year (AY) 2021-22. 2. The assessee has taken following grounds of appeal:- “1. The Id. CIT(A), NFAC has grievously erred in law and on facts in upholding the order of A.O. dated 27/03/2025 passed u/s. 147 in as much as that conditions for re-opening as per section are not fulfilled rendering the re-assessment proceeding as bad in law

The order continues below.

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