ALLIANCE BOOKS SUPPLIERS PVT. LTD.,COOCHBEHAR vs. ACIT, CIRCLE 2(1), JALPAIGURI

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ITA 2747/KOL/2025Status: DisposedITAT Kolkata13 August 2026AY 2020-20214 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, following its own order in a similar case for a prior assessment year, restored the issue to the Assessing Officer for fresh adjudication. The AO was directed to collect information from the bank regarding FDRs given as security.

What were the facts?

The assessee, a non-filer, received interest on securities. The Assessing Officer added a sum on account of interest from bank deposits, and the CIT(A) dismissed the assessee's appeal. The assessee appealed to the ITAT.

What were the issues?

Whether the interest income from bank deposits, where the principal was given as security for bank guarantees, is taxable as income. The need for the AO to gather complete information from the bank.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH,

Before: SHRI YOGESH KUMAR U.S. & SHRI RAKESH MISHRA

For Appellant: Shri Soumitra Choudhary, AR
For Respondent: Shri Ujjawal Mandal, Sr. DR
Hearing: 10.08.2026Pronounced: 13.08.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No.2747/KOL/2025 Assessment Year:2020-21

Alliance Books Suppliers Vs. ACIT, Circle-2(1), Private Limited Jalpaiguri Khagrabari, North, PS-Kotwali Area Sardar, Coochbehar West Bengal-736101 [PAN: AADCA1168P] APPELLANT RESPONDENT Appellant by : Shri Soumitra Choudhary, AR Respondent by : Shri Ujjawal Mandal, Sr. DR Date of hearing : 10.08.2026 Date of Pronouncement : 13.08.2026 O R D E R PER YOGESH KUMAR U.S., JUDICIAL MEMBER: This Appeal is filed by the Assessee against the order of the NFAC, Delhi (‘Ld. CIT(A)’ for short) dated 22.08.2025, passed u/s 250 of the Income Tax Act, 1961 (“the Act”, for short) for the Assessment Year 2020-21.

2.

There is a delay of 21 days in filing the Appeal. The Assessee filed an application for condonation of delay. For the reasons stated in the application for condonation of delay, the delay of 21 days in filing the present Appeal is hereby condoned.

ITA No.2747/Kol/2025 Alliance Books Suppliers Private Limited; A.Y: 2020-21 3. Brief facts of the case are that, Assessee is a non-filer. As per the information flagged in accordance with the Risk Management Strategy formulated by the CBDT under “Non filing of Return with PAN cases”, it was observed that Assessee has received an amount of Rs.10,77,882/- as interest on securities for the year under consideration. An Assessment Order dated 08.01.2025 has been framed u/s 147 r.w.s. 144 r.w.s. 144B of the Act wherein, the Assessing Officer added a sum of Rs.10,66,733/- on account of interest received from bank deposits. Aggrieved by the Assessment Order dated 08.01.2025, Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide Order dated 22.08.2025, dismissed the Appeal of the Assessee. As against the Order of the Ld. CIT(A) dated 22.08.2025, Assessee filed the present Appeal.

4.

The Learned Counsel for the Assessee submitted that Assessee has furnished all the documents in order to discharge its onus before the Assessing Officer and substantiated the fact that the business of the Assessee was totally closed since long time and the Assessee has not received any instant income. The Learned Counsel for the Assessee further submitted in Assessee’s own case for the A.Y. 2019- 20, the Co-ordinate Bench of the Tribunal in ITA No.566/KOL/2025, vide Order dated 04.12.2025, restored the issue to the file of the

ITA No.2747/Kol/2025 Alliance Books Suppliers Private Limited; A.Y: 2020-21 Assessing Officer for fresh re-adjudication. Thus, sought for allowing the present Appeal.

5.

Per contra, the Ld. DR relying on the orders of the Lower Authorities, sought for dismissal of the Appeal.

6.

We have heard the parties and perused the material available on record. In the similar circumstances, in the Assessee’s own case for the A.Y. 2019-20, the Co-ordinate Bench of the Tribunal in ITA No.566/KOL/2025, restored the issue to the file of the Assessing Officer in following manners: -

“2.3. Having considered submissions and perusing the materials available on record, we find that the assessee’s account was declared NPA following which security/guarantee given by the assessee in the form of FDRs with interest thereon to various institutions. We note that the bank has not responded to the various requests by the assessee. In these circumstances, we are considered opinion that the ends of justice would be well served if the case is restored to the file of the learned AO and learned AO is directed to collect all these information by issuing summon to the bank to furnish all the details. Accordingly, we set aside the issue to the file of the learned AO with a direction to issue necessary summon to the bank and call for the details from the bank and assessed the income accordingly. Needless to say that only interest income on FDS is to be assessed and theprincipal amount of FDs which was given as security to the bank against bank guarantee of ₹4 crores if disclosed is not liable to be taxed as income. With this observation, the case of the assessee is restored to the file of the learned AO for re- adjudication.” 7. By respectfully following the Order of the Co-ordinate Bench of the Tribunal, Assessee’s own case in ITA No.566/KOL/2025, we restore the issue to the file of the Assessing Officer in the said terms.

ITA No.2747/Kol/2025 Alliance Books Suppliers Private Limited; A.Y: 2020-21 8. In the result, Appeal of the Assessee is partly allowed for statistical purposes.

Order pronounced on 13.08.2026. Sd/- Sd/- (RAKESH MISHRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 13.08.2026 DP, PS Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //TRUE COPY//

(MANISH BHOI) DEPUTY REGISTRAR KOLKATA BENCHES, KOLKATA

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