Ghanshyambhai Devrajbhai Dobariya Vs ITO (ITAT Surat)
Capital Introduction Explained with Documentary Evidence – Section 68 Addition Deleted
The Surat Bench of the ITAT allowed the assessee’s appeal for AY 2012-13 and deleted the addition of ₹26.23 lakh made under section 68 in respect of capital introduced by the assessee. The Tribunal noted that the assessee had furnished comprehensive documentary evidence including bank statements, cash book, return acknowledgements for earlier years, agricultural land records (7/12), and other supporting documents explaining the source of capital.
On examination of the material placed on record, the Tribunal found that although the evidence was available, the Assessing Officer had failed to properly examine and appreciate the same. Once the source of capital introduction stood duly explained through contemporaneous records, no addition under section 68 was warranted. Accordingly, the impugned addition was deleted and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT PUNE
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.
2. 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:
| 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 |
| 1. | Bank Statement of Axis Bank of Ghanshyambhai Devarajbhai Dobariya from the period of 01 April 2011 to 31 March 2012 |
| 2. | Account Copy of Bank Book of Ghanshyambhai Devarajbhai Dobariya from the period of 01 April 2011 to 31 March 2012 |
| 3. | Account Copy of Cash Book of Ghanshyambhai Devarajbhai Dobariya from the period of 01 April 2011 to 31 March 2012 |
| 4. | Acknowledgment ROI and Computation of income for A.Y. 2008-09 To 2012-13 and relevant page |
| 5. | 7×12 of Agriculture Land |
3. 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.
