LAXMI BHATTER,KOLKATA vs. DCIT, CC 2(1),, KOLKATA

ITSSA 52/KOL/2025Status: DisposedITAT Kolkata11 May 2026AY 2019-20207 pages
AI SummaryRemanded

What were the facts?

The assessee, an individual, filed a return for AY 2019-20 declaring Rs. 10,15,540, which was accepted under Section 143(1). A search operation on January 28, 2019, led to the seizure of jewellery worth Rs. 20,69,111 and cash of Rs. 55,97,000 from a locker belonging to the assessee. Notices under Section 143(2) and 142(1) were issued, followed by a show cause notice. The Assessing Officer (AO) passed an order under Section 144 on March 17, 2021, adding Rs. 76,66,111 (cash and jewellery) as unexplained under Section 69A read with Section 115BBE. The CIT(A) dismissed the assessee's appeal on February 11, 2025, for non-compliance and lack of details. The ITAT initially dismissed the assessee's appeal ex-parte on July 17, 2025, but later recalled its order on November 28, 2025, restoring the appeal. The present hearing is after the recall.

What did the Tribunal hold?

The Tribunal noted the consistent non-compliance by the assessee before the Assessing Officer and the CIT(A), including failure to respond to notices and show cause notices. The CIT(A) had dismissed the appeal for non-pursuance, and the Tribunal had initially confirmed this ex-parte. However, upon recalling its order, the Tribunal observed that documentary evidence had now been filed by the assessee. The Tribunal found that these documents required verification by the Assessing Officer. Therefore, the Tribunal set aside the orders of the lower authorities and restored the appeal to the file of the AO for adjudication afresh. The AO was directed to hear the assessee and examine the documents filed. The issue regarding the validity of notices under Section 143(2) was implicitly not decided as the matter was remanded for fresh adjudication. The appeal was allowed for statistical purposes.

What were the issues?

1. Whether the assessment framed under Section 143(3) of the Income-tax Act, 1961 (the Act) is bad in law for want of valid notices under Section 143(2) of the Act? 2. Whether the addition of Rs. 20,69,111/- as unexplained jewellery under Section 69A read with Section 115BBE of the Act is justified, considering the assessee's contention that the jewellery was duly explained and belonged to the family from disclosed sources? 3. Whether the assessee was denied an effective opportunity to explain the seized items before the Assessing Officer and the CIT(A)? Assessee's Contentions: The Ld. AR argued that the assessment under Section 143(3) was invalid due to defective notices under Section 143(2). It was further contended that the jewellery addition was erroneous as it was explained and consistent with disclosed family sources. The assessee also claimed denial of an effective opportunity to present their case before the lower authorities. Revenue's Contentions: The Ld. DR supported the impugned order, arguing that the assessee was not vigilant before the AO and CIT(A), having failed to comply with notices under Section 142(1) and not appearing before the CIT(A).

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 143(1),Section 132(1),Section 143(2),Section 142(1),Section 69A,Section 115BBE,Section 272A(1)(d),Section 114

AI-generated summary — verify with the full judgment below

Before: ShriRajesh Kumar & ShriPradip Kumar Choubey

Per Pradip Kumar Choubey, Judicial Member:

This appeal filed by the assessee is directed against the order dated 15.09.2025 of the National Faceless Appeal Centre (NFAC) passed under Section 147 r.w.s144 of the Assessment Year 2019-20 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”).

2.

Brief facts of the case are that the assessee is an individual who had filed her return of income on 12.11.2019 for the AY 2019-20 declaring total income at Rs. 10,15,540/- which was co

The order continues below.

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