Abhubhai Nagarbhai Kolipatel Vs ITO (ITAT Ahmedabad)
Cash Loan Fully Explained Through Verified Land-Compensation Withdrawals- ITAT Ahmedabad Deletes ₹10 Lakh Addition:
In this appeal, Assessee, an illiterate individual residing in a remote village, challenged both the refusal of condonation by CIT(A) & the addition of ₹10,00,000 treated as unexplained income u/s 69. Tribunal condoned the delay after noting that postal communications did not reach Assessee in time, and following the liberal approach mandated in several precedents.
On merits, Tribunal found that the alleged unexplained sum of ₹10,00,000 represented a cash loan received from Shri Hargovandas Kalabhai Koli Patel, an agriculturist whose land had been acquired by GIDC for ₹3.07 crore. Detailed inquiries by DDIT(Inv.) & AO themselves revealed that ₹2.17 crore was withdrawn in cash, out of which ₹10 lakh was advanced to Assessee. Tribunal held that the source, identity & availability of funds were already established & documented by Revenue authorities. Since Assessee’s loan was explained through verified cash withdrawals & there was no contrary material, the addition was unwarranted. Tribunal deleted the addition in full & allowed the appeal.
FULL TEXT OF THE ORDER OF ITAT 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 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.
