Nasim Ahmad Khan Vs ACIT (ITAT Lucknow)
Cash Gifts From Family Need Verification, Not Blind Rejection: ITAT Lucknow Remands ₹13.50 Lakh s.68 Addition
Lucknow ITAT ‘B’ Bench, in Nasim Ahmad Khan vs. ACIT (ITA No.492/LKW/2024, AY 2017-18, order dated 23.12.2025), allowed the assessee’s appeal for statistical purposes and set aside the orders of the lower authorities, remanding the issue of ₹13.50 lakh addition u/s 68 r.w.s. 115BBE for fresh adjudication on merits.
The Assessee had explained the cash capital contribution of ₹13.50 lakh as received from close family members—father, mother and wife. In support, the assessee furnished:
– affidavits of the donors, and
– copies of their income-tax returns, demonstrating identity and prima facie capacity.
However, the AO rejected the explanation merely because the amounts were received in cash, and the CIT(A)/NFAC confirmed the addition without examining the evidences or recording any finding on the creditworthiness of the donors.
The Tribunal noted that both authorities failed to verify the material on record. It was observed that:
– the donors were close relatives,
– affidavits and ITRs were on record, and
– there was no adverse finding on their capacity or genuineness of the transactions.
In such circumstances, the ITAT held that summary rejection of evidence is unsustainable. The proper course was to verify the evidence and then decide. Accordingly, the ITAT set aside the impugned orders and restored the issue to the CIT(A) with directions to examine the evidences afresh and pass a reasoned order in accordance with law. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT AGRA
