Amish Jayeshbhai Dadawala Vs ITO (ITAT Ahmedabad)
Rule 46A Ignored, Justice Denied: ITAT Remands ₹39.73 Lakh Demonetisation Addition to CIT(A)
ITAT Ahmedabad “SMC” Bench, in Amish Jayeshbhai Dadawala vs ITO (ITA No.1528/Ahd/2025, AY 2017-18; order dated 24.12.2025), has set aside the NFAC order on the issue of cash deposit addition u/s 69A and remanded the matter back to CIT(A) for fresh adjudication after considering additional evidence filed under Rule 46A.
The assessee’s case was selected for scrutiny on account of large cash deposits during the demonetisation period and other high-value cash receipts. The AO, alleging non-genuine and unverifiable transactions, made an addition of ₹39.73 lakh u/s 69A and also disallowed deduction u/s 24(b). Though the assessee filed additional evidences before CIT(A), the appellate authority acknowledged their filing but failed to admit or verify them, and proceeded to confirm the addition.
ITAT noted that once CIT(A) records that additional evidences were filed in terms of Rule 46A, they cannot be brushed aside without examination. Passing an appellate order without verification of such evidences was held to be contrary to principles of natural justice.
Accordingly, ITAT restored the issue relating to ₹39.73 lakh addition u/s 69A to the file of CIT(A) with directions to verify the additional evidences, adjudicate the issue afresh on merits, and grant due opportunity of hearing to the assessee. The appeal was thus partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This is an appeal filed against the order dated 18-06- 2025 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2017-18.
