KALPANA MISRA,GAUTAM BUDDHA NAGAR vs. ITO WARD 28(1), DELHI

ITA 5270/DEL/2026Status: DisposedITAT Delhi29 September 2026AY 2019-204 pages
AI SummaryAllowed

What were the facts?

The assessee, Kalpana Misra, is a housewife. The Assessing Officer (AO) reopened her case for AY 2019-20 under Section 147 r.w.s. 144 r.w.s. 144B of the Income-tax Act, 1961, based on information from the insight portal indicating unexplained time deposits of Rs. 35,70,000 and interest income of Rs. 68,078 with Axis Bank. No return was filed by the assessee. A notice under Section 148 was issued, but no return was filed. Subsequently, a notice under Section 142(1) was issued, and reassessment was completed on March 22, 2024, making additions totaling Rs. 36,38,078. The National Faceless Appeal Centre (NFAC), Delhi (CIT(A)), upheld the AO's order. The assessee appealed to the ITAT.

What did the Tribunal hold?

The Tribunal held that the addition of Rs. 35,70,000 on account of unexplained investment in time deposits was not justified. The Tribunal found that the assessee had placed on record the income tax return acknowledgement, Form 16, and bank statements of her husband, Mr. Anurag Mishra, as well as her own bank statements. A perusal of these statements clearly showed periodic fund transfers from the husband to the assessee. The Tribunal noted that the net amount received from the husband during FY 2018-19 was Rs. 29,67,406, out of which Rs. 27,01,300 was invested in fixed deposits. The Tribunal observed that the AO's figure of Rs. 35,70,000 was incorrect and that the actual investment was Rs. 27,01,300, which was properly sourced from the husband's salary. Therefore, the addition was deleted. Regarding the interest income of Rs. 68,078, the Tribunal held that it emanated from funds received from the husband as a gift. In the interest of justice and fair play, the Tribunal directed the AO to club and assess this interest income in the hands of the husband, Mr. Anurag Mishra, under Section 64 of the Act, and delete it from the hands of the assessee. The grounds raised by the assessee in this regard were allowed.

What were the issues?

1. Whether, in the facts and circumstances of the case, the CIT(A) was justified in confirming the addition of Rs. 35,70,000 on account of unexplained investment in time deposits, as per Section 147 r.w.s. 144 r.w.s. 144B of the Act? 2. Whether, in the facts and circumstances of the case, the CIT(A) was justified in confirming the addition of Rs. 68,078 on account of interest income, as per Section 147 r.w.s. 144 r.w.s. 144B of the Act? Assessee's contentions: The assessee argued that the entire funds for the fixed deposit investment were received from her husband, Mr. Anurag Mishra, through bank transfers. Evidence, including the husband's bank statements, Form 16, and income tax return acknowledgement, was provided. It was submitted that the husband was employed with Axis Bank and earned substantial salary income. The assessee also contended that the actual investment in fixed deposits was Rs. 27,01,300, not Rs. 35,70,000, and this amount was sourced from her husband's salary. The interest income of Rs. 68,078 emanated from funds received from her husband as a gift, not a loan. Revenue's contentions: The revenue, through the AO and CIT(A), contended that the investment and interest income were unexplained and thus escapement of income had occurred, justifying the additions.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 148,Section 142(1),Section 64

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI M. BALAGANESH

The appeal in ITA No.5270/Del/2026 for AY 2019-20, arises out of the 1. order of the ld National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 13.03.2026 against the order of assessment passed u/s 147 r.w.s. 144 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 22.03.2024 by the Assessing Officer, Assessment Unit, Income Tax Department (hereinafter referred to as ‘ld. A

The order continues below.

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