Loading judgment…
Facts
The Assessing Officer made an addition of Rs. 26,23,459/- under section 68 treating the capital introduced by the assessee as unexplained income. The assessee contended that the capital was duly disclosed and its sources were properly explained, providing various supporting documents.
Held
The Tribunal found that although the details were on record, they were not properly examined by the Assessing Officer. Upon verification of the materials, the Tribunal was satisfied that the source of capital introduction was duly explained, thus no addition under section 68 was warranted.
Key Issues
Whether the addition made under section 68 for unexplained capital introduction was justified, given the evidence provided by the assessee.
Sections Cited
68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, SURAT BENCH, SURAT
PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
This appeal has been filed by the Assessee against the order dated 18.06.2024 passed by the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“the CIT(A) in short), under Section 250 of the Income-tax Act, 1961 (“the Act”), relating to the Assessment Year 2012-13.
In the present case, the Assessing Officer made an addition of Rs.26,23,459/- under section 68 of the Income-tax Act, 1961, treating the capital introduced by the assessee as unexplained income. Before us, the Ld. Counsel for the assessee submitted that the said amount had been duly disclosed and offered to tax and that the sources of capital introduction were properly explained. In support, the assessee furnished the following details:
Asst. Year : 2012-13 - 2– Sr.No. Particulars 1 Certificate of Import Export Certificate. 2. Bank Statement of The Varachha Co-op Bank of Ghanshyambhai Devarajbhai Dobariya from the period of 01 April 2011 to 31 March 2012
3. Bank Statement of Axis Bank of Ghanshyambhai Devarajbhai Dobariya from the period of 01 April 2011 to 31 March 2012
4. Account Copy of Bank Book of Ghanshyambhai Devarajbhai Dobariya from the period of 01 April 2011 to 31 March 2012
Account Copy of Cash Book of Ghanshyambhai Devarajbhai Dobariya from the period of 01 April 2011 to 31 March 2012
Acknowledgment ROI and Computation of income for A.Y. 2008-09 To 2012-13 and relevant page
7x12 of Agriculture Land
On perusal of the above documents reflecting the amounts introduced into the capital account, we find that although these details were available on record, the same were not properly examined by the Assessing Officer. Upon verification of the material placed before us, we are satisfied that the source of capital introduction stands duly explained. Accordingly, no addition under section 68 of the Act is called for.
In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 23.01.2026.