Dharmendrasinh Manharsinh Chudasama Vs ITO (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT) Ahmedabad addressed an appeal by Dharmendrasinh Manharsinh Chudasama against the National Faceless Appeal Centre’s (NFAC) order sustaining a Rs. 99.52 lakh addition under Section 69 of the Income Tax Act, 1961. This addition arose from the alleged failure to explain unsecured loans used in the purchase of immovable property. The assessee, who declared an income of Rs. 1.35 lakh and exempt income of Rs. 52.30 lakh for the Assessment Year 2021-22, contested that sufficient details, such as PAN numbers, income tax returns, and bank statements of lenders, had been provided but were not duly considered. The Assessing Officer (AO), citing non-compliance to earlier notices, determined a total income of Rs. 1.01 crore. The CIT(A) dismissed the appeal due to insufficient details about the lenders and their source of funds.
The ITAT reviewed the case and found merit in the assessee’s request for reconsideration, as the details of the loan parties were reportedly available. Emphasizing fairness, the tribunal referred the matter back to the AO for reassessment of the evidence. The tribunal clarified that this referral would not prejudice the revenue. Consequently, the appeal was allowed for statistical purposes, enabling the AO to reassess the addition and decide based on the Act’s provisions.
