ABHUBHAI NAGARBHAI KOLIPATEL,AHMEDABAD vs. THE ITO, WARD-3(2)(1), AHMEDABAD
Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI T.R. SENTHIL KUMAR
PER DR. B.R.R. KUMAR, VICE-PRESIDENT :
Delay Condoned.
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 30.01.2025 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as "the Act" for short], for Assessment Year (AY) 2012-13. 2. The assessee has raised the following grounds of appeal :-
“1 The Learned Commissioner of Income Tax (Appeals) ['CIT(A)'] has erred in not allowing condonation of delay in filing the appeal, despite the Appellant having demonstrated sufficient and reasonable cause, being an illiterate person residing in a remote village with no timely delivery of postal communications; and thereby failed to adopt a liberal approach as mandated by law, resulting in denial of substantial justice.
2 That the Learned Assessing Officer ("AO") / Learned Commissioner of Income Tax
(Appeals) has erred in treating the loan of INR 10,00,000 received from Shri
Asst. Year : 2012-13
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the basis of inquiries conducted by the DDIT (Inv.), Unit-1(1). Accordingly, the addition made is unjustified, invalid, and contrary to law.”
The brief facts of the case are that the assessee is an individual who has not filed his return of income for the year under consideration. Another fact relevant for adjudication of the issue is that Shri Hargovandas Kalabhai Koli Patel, who is an agriculturist and his land was acquired by the GIDC, Ahmedabad. In turn, he has received an amount of Rs.3,07,66,301/- from GIDC, Unit-I, Ahmedabad as compensation for land acquisition. Subsequently Shri Hargovandas Kalabhai Koli Patel withdrew an amount of Rs.2,17,22,600/- in cash. Out of these cash withdrawals, the following expenditures/investments were recorded by the Assessing Officer.
Sr. No.
Nature of Expenditure/Investment
Amount (Rs.)
1
Agricultural land purchased
20,01,200
2
Vehicles purchased
22,38,123
3
Gold purchased
8,28,161
4
Loan given to Abhubhai Nagarbhal Koli Patel
(The Asseseee )
10,00,000
5
Expenditure incurred on building construction
45,00,000
6
Amount given to 8 family members
85,00,000
7
Marriage expenses of his son
6,50,000
8
Cash on hand
20,05,116
TOTAL
2,17,22,600
4. During the course of inquiry, the assessee, Shri. Abhubhai Nagarbhal Koli Patel could not furnish complete details, namely the name, address, confirmation, and PAN of Shri Hargovandas Kalabhai Koli Patel from whom a loan of Rs.10,00,000/- was taken in cash. Since the assessee did not comply with the statutory notices issued by the Revenue
Department, the Assessing Officer treated the amount of Rs.10,00,000/-, which was received by the assessee from Shri Hargovandas Kalabhai Koli Patel, as unexplained income of the assessee and added to his total income.
Asst. Year : 2012-13
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5. We have heard both the parties and carefully perused the material available on record. It is evident that the assessee received a cash loan of Rs.10,00,000/- from Shri
Hargovandas Kalabhai Koli Patel, an agriculturist whose land was acquired by GIDC,
Ahmedabad. Shri Hargovandas Kalabhai Koli Patel had received Rs.3,07,66,301/- as compensation for the acquisition and subsequently withdrew Rs.2,17,22,600/- in cash, out of which the loan of Rs.10,00,000 was extended to the assessee. The Revenue
Authorities have treated this loan amount as unexplained income. The genuineness of the source has been clearly established on record now and is not in dispute. Considering the detailed inquiry conducted, the verified source of funds, the documented cash withdrawals and expenditures of Shri Hargovandas Kalabhai Koli Patel as mentioned by the AO himself, we hold that the addition of Rs.10,00,000/- to the assessee’s income is unwarranted. No addition in the hands of the assessee is called for.
6. In the result, the appeal of the assessee is allowed.
The order is pronounced in the open Court on 12.11.2025 (T.R. SENTHIL KUMAR)
VICE-PRESIDENT
Ahmedabad; Dated 12/11/2025
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आदेश की ितिलिप अ ेिषत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant
2. थ / The Respondent.
3. संबंिधतआयकरआयु / Concerned CIT
4. आयकरआयु(अपील) / The CIT(A)-
5. िवभागीयितिनिध, आयकरअपीलीयअिधकरण, अहमदाबाद/ DR, ITAT, Ahmedabad
6. गाड फाईल/ Guard file.
आदेशानुसार/ BY ORDER,उप/सहायक पंजीकार (Dy./Asstt.