MANNOJ KUMAR JAIN,KOLKATA vs. D.C.I.T., CC - 1(2), KOLKATA

ITA 411/KOL/2026Status: DisposedITAT Kolkata25 September 2026AY 2013-20145 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the money used for purchasing jewellery on behalf of the company, out of disclosed income during search, and kept in the assessee's custody, cannot be treated as a cash loan. Therefore, the penalty levied under Section 271D is unsustainable.

What were the facts?

During a search, the assessee disclosed income and explained that an amount of ₹66,44,311/- was used for purchasing jewellery, which was found at his residence and locker. The AO treated this as a cash loan violating Section 269SS and levied a penalty under Section 271D.

What were the issues?

Whether the amount used for purchasing jewellery, found in the assessee's possession, constitutes a cash loan in violation of Section 269SS, warranting a penalty under Section 271D.

Which sections of the Income-tax Act were involved?

Section 269SS,Section 271D,Section 132(1),Section 132(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, KOLKATA

For Appellant: Shri Robin Maheswari &
For Respondent: Shri Jitendra Kantilal Surti, DR
Hearing: 18.08.2026Pronounced: 25.09.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals), Kolkata- 20 (hereinafter referred to as the “Ld. CIT(A)”] dated 30.05.2025 for the AY 2013-14. 2. At the time of hearing the assessee pressed ground no.2, which is against the confirmation of penalty by the Ld. CIT (A) of ₹66,44,331/- as levied by the Ld. AO u/s 271D of the Act for alleged violation of Section 269SS of the Act by ignoring the fact that jewellery belonging to M/s Jain Space Infraventure Ltd as its application of income and kept with the assessee for safe custody only and there was no such Manoj Kumar Jain; A.Y. 2013-14

The order continues below.

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