MASTER HANDLOM HOUSE,AHMEDABAD vs. ITO, WARD 1(2)(3), AHMEDABAD, AHMEDABAD

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 23.05.2025 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as "the Act" for short], for Assessment Year (AY) 2017-18.

The grounds of appeal raised by the Assessee are as follows:-

The facts reveal that the firm’s account has been utilized by the partner and the details of the accounts have been changed even in the bank. The Ld. Counsel argued that the partner, having taken over the accounts of the firm, continued business of the similar nature and used the account of the firm.

On the other hand, the Ld. DR argued that the partner, who has used the bank account, could not establish that the deposits are made out of business receipts. The Ld. DR argued that the assessee has absolutely failed to prove the factum of conducting of the business and receiving the money in cash by way of producing bills/vouchers/ purchase details/sales details. The Ld. DR argued that in the absence of crucial evidence of conducting of any business, the addition needs to be sustained and alternatively prayed that the factum of running of the business has to be established.

In these contextual facts, we deem it proper that the partner shall produce all the details of conducting of the business, by way of producing bills/vouchers/ purchase details/sales details and utilization of bank statement, failing which the partner shall be subjected to rigours of the provisions of the Act.

In the result, the appeal of the assessee is allowed for statistical purposes.