Case Note & Summary
The present tax appeal was filed by the assessee Shantilal Khimjibhai Uchadadia against the order of the Income Tax Appellate Tribunal, Ahmedabad dated 29.10.1999. The Tribunal had confirmed an addition of Rs.1,42,450/- made by the Assessing Officer under Section 69A of the Income Tax Act, 1961 as unexplained money. The assessee claimed that the amount belonged to his wife and that he had sufficient cash balance. However, the Tribunal noted that the assessee failed to produce details of addresses of persons to whom the amount was given by way of loan. The High Court had earlier formulated two substantial questions of law. At the hearing, both counsel submitted that the assessee had also filed Tax Appeal No.1806/2010 against the same Tribunal order, which was dismissed by a coordinate bench on 18.01.2012. In that appeal, the court had examined the same amount of Rs.1,42,450/- and upheld the Tribunal's finding. The court perused the order in Tax Appeal No.1806/2010 and found that the coordinate bench had observed that the Tribunal had closely examined the issue and noted that the assessee had not produced details of addresses of persons to whom loans were given. The court held that the present appeal was covered by the earlier decision and dismissed it, answering both questions of law against the assessee.
Headnote
A) Income Tax - Unexplained Money - Section 69A, Income Tax Act, 1961 - Addition of Rs.1,42,450/- as unexplained money - Assessee claimed amount belonged to his wife but failed to produce details of addresses of persons to whom loans were given - Tribunal confirmed addition - Held that on identical issue in Tax Appeal No.1806/2010, coordinate bench dismissed appeal - Present appeal also dismissed (Paras 2-5).
Issue of Consideration
Whether the Income Tax Appellate Tribunal was right in law in confirming addition of Rs.1,42,450/- made by the respondent and in not appreciating various evidences including balance sheet and income tax records showing sufficient cash balance in the hands of the wife of the appellant.
Final Decision
The appeal is dismissed. The substantial questions of law are answered against the appellant and in favor of the revenue.
Law Points
- Income Tax Act
- 1961
- Section 69A
- Unexplained money
- Burden of proof
- Substantial question of law
- Coordinate bench binding
Case Details
2026 LawText (GUJ) (02) 744
R/TAX APPEAL NO.1805 of 2010
A.S. Supehia, Pranav Trivedi
Ms.Vaibhavi K Parikh for appellant, Karan G Sanghani for respondent
Shantilal Khimjibhai Uchadadia
Assistant Commissioner of Income Tax
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Nature of Litigation
Tax appeal under Section 260A of the Income Tax Act, 1961 against order of Income Tax Appellate Tribunal confirming addition of unexplained money.
Remedy Sought
Appellant sought setting aside of Tribunal order confirming addition of Rs.1,42,450/-.
Filing Reason
Appellant challenged the Tribunal's order dated 29.10.1999 which confirmed the addition of Rs.1,42,450/- as unexplained money under Section 69A.
Previous Decisions
The Assessing Officer made the addition; the Commissioner of Income Tax (Appeals) confirmed it; the Tribunal also confirmed the addition. In a related Tax Appeal No.1806/2010, the High Court dismissed the appeal on 18.01.2012.
Issues
Whether the Tribunal was right in law in confirming addition of Rs.1,42,450/- made by the respondent?
Whether the Tribunal was right in law in not appreciating various evidences including balance sheet and income tax records showing sufficient cash balance in the hands of the wife of the appellant?
Submissions/Arguments
Appellant argued that the amount of Rs.1,42,450/- belonged to his wife and that he had sufficient cash balance as per balance sheet and income tax records.
Respondent argued that the assessee failed to produce details of addresses of persons to whom loans were given, and the Tribunal's finding was correct.
Ratio Decidendi
Where the assessee fails to produce details of addresses of persons to whom loans were given, the Tribunal is justified in treating the amount as unexplained money under Section 69A of the Income Tax Act, 1961. Further, an identical issue decided by a coordinate bench is binding.
Judgment Excerpts
Tribunal after closely examining the issue noted that the assessee had explained that the amount of Rs.1,42,450/- belonged to his wife. It also noted further that details of addresses of the persons whom amount had been given by way of loan was not produced.
What weighed with the Tribunal was the fact that details of addresses of the persons whom amount had been given by way of loan was not produced.
Procedural History
The Assessing Officer made an addition of Rs.1,42,450/- under Section 69A. The Commissioner of Income Tax (Appeals) confirmed the addition. The Income Tax Appellate Tribunal confirmed the addition on 29.10.1999. The assessee filed Tax Appeal No.1805/2010 and also Tax Appeal No.1806/2010. The coordinate bench dismissed Tax Appeal No.1806/2010 on 18.01.2012. The present appeal was heard and dismissed on 18.02.2026.
Acts & Sections
- Income Tax Act, 1961: Section 69A
