YUNUSH MALLICK,KOLKATA vs. ITO, WARD 61(3),, KOLKATA

This is an appeal filed by the assessee against the order of the NFAC dated 23.06.2025 passed u/s 250 of the Income Tax Act, 1961 (‘Act’).

The brief facts of the case are that the assessee, an individual employee, filed the original return of income for the relevant assessment year declaring total income in accordance with law. Subsequently, it came to the notice of the Department that the assessee had purchased an immovable property jointly/apparently at a price lower than the fair market value as per stamp duty Yunush Mallick valuation. Accordingly, the Assessing Officer reopened the assessment under Section 147 of the Income-tax Act, 1961, and completed the assessment ex parte under Section 144, making the following additions: ₹10,75,000 as unexplained investment under Section 69A of the Act; and ₹26,01,610 as income from other sources under Section 56(2)(x) of the Act.

Aggrieved, the assessee preferred an appeal before the learned CIT(A). The CIT(A), after considering the matter, deleted the addition of ₹10,75,000 relating to investment in the property, but sustained the addition of ₹26,01,610 made under Section 56(2)(x) of the Act as income from other sources.

The assessee is now in further appeal before the Tribunal. From the records, it is seen that although notices were issued to the assessee, there was no appearance during the hearing. Considering the nature of the addition and in the interest of justice and fair play, we are of the view that the issue requires fresh examination. We, therefore, set aside the order of the CIT(A) on this limited issue and restore the matter to the file of the Assessing Officer for fresh adjudication in accordance with law after affording reasonable opportunity of being heard to the assessee. The appeal of the assessee is treated as allowed for statistical purposes.