ITA No.7004/Mum/2025

Parties Involved

Facts Summary

The case involves an appeal by the Revenue against the order of the National Faceless Appeal Centre (NFAC), Delhi, which had allowed the appeal against the Assessment Order passed by the Assessing Officer. The Assessing Officer had made an addition of INR 10,63,03,637 in the income of the assessee under Section 68 of the Income Tax Act, 1961, due to an unexplained increase in the capital account balance from NIL in AY 2021-2022 to INR 27,05,32,933 in AY 2022-2023. The assessee, Dahyalal Gagjibhai Jiwani, explained that the increase was due to accumulated profits and remuneration from his partnership firm, M/s. Srusti Diam, and provided evidence to support his claim.…

Legal Issues

• 1. Whether the Learned CIT(A) was justified in holding that the AO wrongly compared the total capital in assessee's personal balance sheet with assessee's capital in the firm M/s. Srusti Diam and treated the difference as unexplained u/s 68 of the I.T. Act, 1961.
• 2. Whether the Learned CIT(A) was justified in relying upon submission and unaudited books of accounts of the assessee.
• 3. Whether the Learned CIT(A) erred in accepting assessee's claim of capital.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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