RADHIKA ABHISHEK FAMILY TRUST,AHMEDABAD vs. THE ITO, WARD 1(3)(1), AHMEDABAD
आयकर अपीलीय अिधकरण
आयकर अपीलीय अिधकरण
आयकर अपीलीय अिधकरण
आयकर अपीलीय अिधकरण, अहमदाबाद यायपीठ
अहमदाबाद यायपीठ
अहमदाबाद यायपीठ
अहमदाबाद यायपीठ ‘SMC’ अहमदाबाद।
अहमदाबाद।
अहमदाबाद।
अहमदाबाद।
IN THE INCOME TAX APPELLATE TRIBUNAL
“SMC” BENCH, AHMEDABAD
]
]
BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER
Assessment Year : 2020-21
Radhika Abhishek Family Trust
Akshay, 1st Floor, Shrimali
Society, Navrangpura
Ahmedabad.
PAN : AADTR 8375 G
Vs
The ITO, Ward-1(3)(1)
Ahmedabad.
(Applicant)
(Responent)
Assessee by :
Shri Deepak R. Shah, AR
Revenue by :
Shri Ravindra, ld.SR.DR
सुनवाई क तारीख/Date of Hearing : 18/12/2025
घोषणा क तारीख /Date of Pronouncement: 18/12/2025
आदेश
आदेश
आदेश
आदेश/O R D E R
The above appeal has been preferred by the assessee against order passed by the Ld.Commissioner of Income-Tax(Appeals),
National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “ld.CIT(A)] dated 25.09.2025 under section 250 of the Income Tax
Act, 1961 ("the Act" for short) for the assessment year 2020-21. 2. The assessee has raised the following grounds of appeal:
“1. The ld.CIT(A) erred in law and in the facts of the case in upholding the order of the AO in making an addition of Rs.9,64,603/- under section 69A of the Act.”
Short issue involved in this appeal, as raised by the ld.counsel for the assessee during the course of hearing is that the ld.AO has made an addition of Rs.9.64 lakhs despite the fact that the assessee has already offered the said amount for taxation in his return of income. 2
The ld.AR has demonstrated from the assessment order, itself, that the AO had got the information that the assessee had received an interest amount of Rs.9.64 lakhs from ‘Avishkar Trading Company’ as per the TDS statement. The AO, therefore, reopened the assessment of the assessee under section 147 of the Act and asked the assessee as to why tax has not been paid on the aforesaid interest amount received by the assessee. In response, the assessee filed return of income, and further demonstrated to the AO that the assessee had received an amount of Rs.1.40 crores from Shri Chirag Ashokbhai Sheth and that the amount was further given to M/s.Aavishkar Trding Company as loan during the year under consideration. The assessee paid interest of Rs.7,62,520/- to Shri Chirag Ashokbhai Sheth, and received interest of Rs.9,64,603/- from M/s.Aavishkar Trading Company. The assessee, however, offered income of Rs.1,84,500/- for taxation in the return filed in pursuance to the notice under section 147 of the Act.
The ld.DR could not rebut the aforesaid factual aspects of the case.
In view of this, the AO was not justified in making impugned addition of Rs.9,64,603/- i.e. of the entire interest amount received by the assessee by ignoring the corresponding interest expenditure incurred by the assessee. The said addition is accordingly ordered to be deleted.
In the result, the appeal of the assessee stands allowed.
Order pronounced on 18th December, 2025. (Sanjay Garg)
Judicial Member
Ahmedabad,dated 18/12/2025