ITAT Ahmedabad Quashes Rs. 90 Lakh Tax Addition for Misidentified Bank Account

ITAT Ahmedabad quashed a Rs. 90 lakh tax addition against the taxpayer, ruling that the tax authorities erred by misidentifying a bank account. The tribunal accepted the bank certificate, dismissed the addition, and sent the case back for fresh consideration.

ITAT Ahmedabad has delivered its judgement on an appeal filed by a taxpayer, Rajeshkumar Vithaldas Thakkar, against the Income Tax Department, challenging an order dated November 11, 2025, passed by the CIT(A)/NFAC Delhi, under Section 250 of the Income Tax Act, 1961. The case pertains to the Assessment Year 2016-17.

The present case concerns an addition of Rs. 90 lakh to the assessee’s income made by the Assessing Officer (AO) on the grounds that cash deposited into his bank account during the year in consideration was treated as unexplained deposits.

During the assessment proceedings, the assessee had submitted a certificate issued by the HDFC Bank, which clearly proved that the bank account in which the impugned cash was deposited did not belong to him. The bank has certified that the cash of Rs. 90 lakh was deposited in the account number ending in 33845, and the person holding the bank account had the same name as the assessee having PAN ABXPT4272F. On the other hand, the assessee’s PAN was AGXPT2217P, and the bank account number was 50100207554494, as certified by the same. However, both the AO and the lower authorities treated the bank account ending with 33845 as pertaining to the assessee and did not even try to conduct any inquiry regarding the same.

When the tribunal examined the certificate issued by the bank, it found the claims made by the assessee genuine and endorsed the argument of the assessee that the AO did not properly make an inquiry and verification concerning the matter. In conclusion, the tribunal quashed the impugned order dated November 11, 2025, passed by the CIT(A)/NFAC Delhi, and dismissed the impugned addition. The matter has been sent back to the AO for fresh consideration of the case. The assessee’s appeal has been allowed for statistical purposes.