JHUMPA DAS,KOLKATA vs. I.T.O., WARD - 36(1), KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No 2852/KOL/2025 Assessment Year- 2020-21 Jhumpa Das..........................................................................................Appellant Mezzanine Floor, Room No. 3, 1/1 Vansitart Row, Dalhousie, Kolkata- 700001 [PAN No. AEWPD0028F] Vs. Income Tax Officer.....................................................,..……………....……….Respondent Ward-36(1), Kolkata- 700107 Appearances by: Miraj D. Shah, AR, appeared on behalf of the Appellant. Sandeep Kumar Mehta, Addl. CIT, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing: July 09, 2026 Date of pronouncing the order: September 14 ,2026 ORDER Per Pradip Kumar Choubey, Judicial Member: This appeal filed by the assessee is directed against the order dated 24.09.2025 of the National Faceless Appeal Centre (NFAC) passed under Section 147 of the Assessment Year 2020-21 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”). 2. The brief facts of the case of the assessee that the assessee engaged in the business being manufacturing of leather products, filed income tax return for the Assessment Year 2020-21 declaring gross total income of Rs. 13,67,828,/-. The nature of transaction is withdrawal of cash of Rs. 22,52,05,766/- reported from

TDS from 26Q. Considering the total cash withdrawn the Ld. AO construed that the tax payer has filed to justify/validate her withdrawal from bank of rs. 164,307,69/- accordingly entire amount has been treated as unexplained expenditure u/s 69C of the Act. JAO issued notice u/s 148 of the Act in response to the notice assessee filed return of income declaring total income of Rs. 12,10,870/-. The Ld. AO after going over the documentary evidences placed by the assessee passed an order by making following additions which is as belows:- Description Amount (in INR) Total income as per ITR file against notice u/s Rs. 12,10,870 148 Income as computed u/s 143(1)(a) 1. Variation in respect of issue Rs. 33,05,647/- 2. 2. Disallowance of expensed Rs. 8,67,602/- 3. 3. Disallowance u/s 40(A)(3) Total income determined as per the above Rs. 53,84,119/- proposal

3) For that on the facts and circumstances of the case, L.d. CIT (Appeals) NFAC was grossly erred in confirming the estimated disallowance of Rs. 33,05,647/- being 20% of cash Rs. 1,65,28,235/-utilized in making payment of various business expenses. 4) For that on the facts and circumstances of the case, action of Ld. CIT (Appeals) in confirming the estimated 20% disallowance of Rs. 33,05,647/- out of Cash Payment of Rs. 1,65,28,235/- is highly arbitrary, unjustified and unwarranted to the facts of the case and nature of business carried on by the appellant. 5) For that on the facts and circumstances of the case, the estimated disallowance of Rs. 33,05,647/- made by Ld. A.O. and confirmed by Ld. CIT (Appeals) be deleted. 6) For that on the facts and circumstances of the case, the Ld. CIT (Appeals) was grossly erred in confirming disallowance of Rs. 8,67,602/ made by Ld. Assessing Officer invoking Sec 40A(3) of the Act. 7) I may add, alter, amend, modify or withdraw any grounds of appeal on or before the date of hearing. 3.1. The Ld. AR by submitting copy reasons for according approval submitted that there is an withdrawal of Rs. 1.64 crores that cannot be escaped assessment.

Contrary to that Ld. DR supports the impugned order.

During the course of e-verification process, the assessee has failed to explain cash withdrawal of Rs. 1.64 crores from the bank accountand hence the income to the extent of Rs 1.64 Crores has escaped assessement.

4.1. Section deals about the income and not the withdrawal. The present case reasons for according approval and issuance of notice has been sent on cash withdrawal.

In the result the appeal of the assessee is hereby allowed on legal issue.

Kolkata, the 14th September , 2026.

Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member DC Dated: 14 .09.2026. Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- 5. CIT(DR)

//True copy// By order