SONALBEN SANJAYSINH VIHOL,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-1, PATAN

ITA 1828/AHD/2024Status: DisposedITAT Ahmedabad28 August 2025AY 2016-17Bench: Shri Sanjay Garg (Judicial Member), Shri Makarand V. Mahadeokar (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted the assessee's failure to fully disclose facts during assessment but emphasized that the tax department should charge tax only on real income. The Tribunal restored the issue to the AO for de novo assessment, directing verification of details and calling for information from third parties and banks.

What were the facts?

The assessee's bank account showed large cash deposits and withdrawals, and the assessee had not filed a return of income for the relevant assessment years. The Assessing Officer (AO) treated these transactions as income from undisclosed sources and made an ex-parte assessment. The assessee claimed the accounts were used by others for financial transactions for a commission.

What were the issues?

Whether the AO was justified in treating the entire amount of cash transactions as the assessee's income without properly verifying the assessee's claim that the account was used by third parties.

Which sections of the Income-tax Act were involved?

Section 144,Section 250,Section 69A,Section 254,Section 133(6),Section 153(6),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ B ” BENCH, AHMEDABAD

Before: Shri Sanjay Garg & Shri Makarand V. Mahadeokar

For Appellant: Shri Chirag Shah, AR
Hearing: 20/08/2025Pronounced: 28/08/2025

Per Sanjay Garg, Judicial Member:

Both the captioned appeals have been preferred by the assessee against the separate orders of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] of even date 30/07/2024 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessme

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 69A

All 15,297 judgments and leading authorities on Section 69A →

Recent GST High Court judgments

Search GST case law →