BISHAL JAIN,HOWRAH vs. ITO, WARD 47(2),, KOLKATA

The present appeal filed by the assessee arise from order dated
14.12.2024 passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Additional/Joint Commissioner of Income Tax (Appeals)
[hereafter “the Ld. Addl./JCIT(A)].
2. At the outset, we note that the appeal of the assessee is barred by limitation by 110 days. At the time of hearing, the counsel of the assessee explained the reasons for delay in filing the appeal. The Ld. D.R did not raise any objections in condoning the delay. After hearing the rival contentions and perusing the materials available on record, we find that 2
Bishal Jain the delay is for bonafide and genuine reasons, hence, we condone the delay and adjudicate the appeal as under.
3. The assessee challenged the order of Ld. CIT(A) upholding the assessment order wherein the addition is made beyond the scope of limited scrutiny.
4. The facts in brief are that the assessee filed return of income on 30.03.2017 declaring total income of Rs. 7,62,300/-. The case of the assessee was selected for scrutiny whether the cash deposited has been made from the disclosed process. The AO during the course of assessment proceedings exceeded his juri iction by making addition in respect of undisclosed sources of money u/s 69A Rs. 11,69,965/-, Rs.
6,26,929/- on account of undisclosed income in respect of excess profit u/s 69A of the Act and Rs. 43,632/- in respect of cash deposit.
5. In the appellate proceedings the Ld. CIT(A) PARTLY confirmed the addition.
6. Now before us the assessee has challenged the part confirmation of additions. We observe from the appellate order as well as the assessment order, the first issue is that the addition made by the AO in respect of the excess cash disclosed in the cash balance in the return of income which has been reduced to Rs. 4,19,896/-by the Ld. CIT(A). In our opinion, the addition itself beyond the scope of limited scrutiny, therefore, the AO has no juri iction to make such addition. Consequently, we direct the AO to delete the addition. The second addition which was made by the AO to Rs.
6,26,983/-. The said addition was made by the AO on account of non disclosure of excess profit made by the assessee. The addition is not the subject matter of limited scrutiny. Therefore, we set aside the order of ld.
CIT(A) on this issue and direct the AO to delete the addition. So far as the third addition made of Rs. 43,632/-, we note that the said addition made

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Bishal Jain by the AO was deleted by CIT(A) and revenue. The appeal of the assessee is allowed.
7. In result, appeal of the assessee is allowed.
Order pronounced on 19.12.2025 (Rajesh Kumar)
Accountant Member
Dated: 19.12.2025
AK,Sr.P.S.

Copy of the order forwarded to:
1. Appellant
2. Respondent
3. Pr. CIT
4. CIT(A)

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By order