Jeeten Jayshukhlal Mehta Vs DCIT (ITAT Mumbai Bench)
Ledger Mismatch Is Not Unexplained Money: ITAT Deletes ₹27.39 Lakh Addition but Rejects Unsupported Travel Claim
Summary: In Jeeten Jayshukhlal Mehta v. DCIT, ITA No. 2997/Mum/2026, decided on 27 August 2026, the Mumbai Bench of the Income Tax Appellate Tribunal examined whether differences appearing in third-party ledgers could justify an addition of ₹27,39,649 u/s 69A, as well as whether travelling expenditure of ₹4,45,803 was allowable as a business deduction. The Tribunal partly allowed the assessee’s appeal by deleting the addition u/s 69A but sustained the travelling-expense disallowance.
Relevant Facts
The assessee, a resident individual, filed his return for AY 2023-24, declaring total income of ₹3,15,73,180. The return was selected for scrutiny on several grounds, including profits reported under specified business codes, disallowance u/s 40(a)(ia), high-value loan transactions outside banking channels & high income not corresponding with the assets & liabilities schedule.
During scrutiny, the AO issued notices u/s 142(1) & 143(2), seeking details & supporting evidence. On examining purchases from Zim Integrated Shipping Services (India) Ltd., the AO noticed that the assessee’s purchase register reflected purchases of ₹9,64,998, whereas departmental information showed purchases of ₹26,39,034. The supplier’s ledger allegedly reflected payments of ₹1,19,04,219, while the assessee maintained that actual payments were only ₹1,06,52,328.
