What did the Tribunal hold?

The Tribunal held that unexplained investments found during a search should be taxed in the year of discovery. Therefore, the addition of the locker contents to the assessment year 2018-19 was not permissible.

During a search operation on Shree Vardaan Safe Deposits Vaults Pvt. Ltd., the assessee's lockers were found to contain gold and jewellery. The search and valuation occurred in assessment year 2019-20.

What were the issues?

The key issue was whether unexplained investments found in lockers during assessment year 2019-20 could be taxed in the preceding assessment year 2018-19.

Ashok Kumar Mall, Kolkata vs I.T.O., Ward - 62(1), Kolkata | ITAT Kolkata 2026

Income Tax Appellate Tribunal, “A” BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI GOPALAN GURUSAMY

For Appellant: Shri Soumitra Choudhury & Pranabesh Sarkar

For Respondent: Shri Dheeraj, Sr. DR

Hearing: 24.08.2026Pronounced: 24.08.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI GOPALAN GURUSAMY, ACCOUNTANT MEMBER ITA No.712/Kol/2026 Assessment Year: 2018-19

Ashok Kumar Mall ITO, Ward-62(1), Kolkata Vs 216, Mahatma Gandhi Road, Kol- 700007. (PAN: AEAPM5919E) (Appellant) (Respondent)

Assessee by : Shri Soumitra Choudhury & Pranabesh Sarkar, Advocates Revenue by : Shri Dheeraj, Sr. DR Date of Hearing : 24.08.2026 Date of Pronouncement : 24.08.2026

ORDER Per George Mathan, JM: This is an appeal filed by the assessee against the order of the CIT(A)- NFAC, Delhi [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2017-18/10241351 dated 12.11.2025 for the assessment year 2018-19.

Shri Soumitra Choudhury & Pranabesh Sarkar, Advocates represented on behalf of the assessee and Shri Dheeraj, Sr. DR represented on behalf of the revenue.

ITA No.712/Kol/2026

It was submitted by the ld. AR that there was search operation conducted on Shree Vardaan Safe Deposits Vaults Pvt. Ltd. at 25A, Vardaan Market, Kolkata on 28.01.2019. It was the submission that in the course of search, it was noticed that the assessee was having two lockers no.1735 and 1715 maintained by the assessee with Shree Vardaan Safe Deposits Vaults Pvt. Ltd. The said lockers were opened and valued by the government valuer on 22.02.2019. These facts are evident from the report of the DDIT (Investigation Unit), Kolkata 03.06.2019 addressed to the Assessing Officer of the assessee which reads as follows:

ITA No.712/Kol/2026

3.1 It was the submission that the search was conducted on 28.01.2019, the valuation was done on 22.02.2019 which related to the assessment year 2019-20. It was the submission that gold, jewellery found in the locker has been assessed in the hands of the assessee for the assessment year 2018-19. It was the submission that the same is not permissible. It was further submitted that in page 3 of the report of ld. DDIT (Inv.) specifically held that if the said jewellery and cash remained unexplained investment, then the same is to be taxed in the assessment year 2019-20. It was the submission that as the lockers has been opened during the assessment year 2019-20, the same could not be treated as income of the assessee for the assessment year 2018-19.

In reply, the ld. Sr. DR has submitted that the assessee has not disclosed adequate income during the impugned assessment year 2018- 19 which could justify the holding of such unexplained investment during the assessment year 2019-20 and consequently, the addition is liable to be confirmed for the assessment year 2018-19.

We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the bill and vouchers for the transaction of the alleged unexplained investment has not been specifically found. The jewellery and cash were found in the course of search conducted on 28.01.2019. If the alleged unexplained investment is

ITA No.712/Kol/2026

found during the course of search and the same is not supported by any documentation then obviously such unexplained investment is to be assessed in the year which is found i.e. during the assessment year 2019- 20. As it is noticed that the assessment has been done for the assessment year 2018-19 determining the tax on the alleged unexplained investment found in the locker, we are of the view that the additions made in the impugned assessment year 2018-19 are liable to be deleted and we do so.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 24/08/2026.

Sd/- Sd/- [Gopala Gurusamy] [George Mathan] लेखा सदस्य/Accountant Member न्याययक सदस्य/Judicial Member Dated: 24/08/2026 RS Copy of the order forwarded to: 1. Appellant - 2. Respondent – 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Deputy Registrar, Kolkata Benches

ASHOK KUMAR MALL,KOLKATA vs. I.T.O., WARD - 62(1), KOLKATA

What did the Tribunal hold?

What were the facts?

What were the issues?

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