Prateek Rahul Mehta Vs ITO (ITAT Mumbai)
Mumbai ITAT deleted an addition of ₹16.61 lakh made u/s 69C towards alleged unexplained credit card payments.
The Tribunal observed:
- The case was reopened based on AIR information of high credit card usage
- The assessee explained that the card was used by relatives and associated entities, who directly made payments
- Detailed documentary evidence was furnished, including:
- Confirmations
- Bank statements
- ITRs and financials of contributors
- Affidavits supporting transactions
The ITAT held:
- The assessee had fully explained the source of payments
- Payments were partly personal and largely made by identifiable third parties
- Once supporting evidence is furnished and unrebutted, no further burden lies on the assessee
Accordingly, the addition was held unsustainable, deleted in full, and the appeal was allowed, with legal grounds kept open.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The instant appeal of the assessee filed against the order of the NFAC, Delhi [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for Assessment Year 2013-14, date of order 16.01.2026. The impugned order emanated from the order of the Ld. Assistant Commissioner of Income Tax Circle 19(2)(4), Mumbai (for brevity the ‘Ld. AO’) order passed under section 147 r.w.s. 144of the Act date of order 29.05.2023.
