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Facts
The assessee filed an Income Tax Return for AY 2017-18, and the case was selected for scrutiny due to SBN deposits during demonetization. The Assessing Officer (AO) made various additions for unexplained bank credit, SBN deposits, bogus sundry creditors, and disallowed expenses under Section 40A(3), leading to an assessment under Section 143(3). The CIT(A) partly allowed the appeal, and the assessee subsequently filed an appeal to the ITAT with a delay of 515 days, which the Tribunal condoned.
Held
The Tribunal condoned the significant delay in filing the appeal. Despite the assessee's failure to avail opportunities of being heard before the AO and CIT(A), the ITAT set aside the orders of both the CIT(A) and the AO. The matter was remitted back to the AO for a de novo reassessment, subject to the assessee paying a cost of ₹5,000/- to the West Bengal State Legal Services Authority within sixty days, failing which the CIT(A)'s order would stand confirmed.
Key Issues
Condonation of delay in filing appeal; validity of additions made by lower authorities for unexplained money, SBN deposits, bogus sundry creditors, and disallowance under Section 40A(3); whether adequate opportunity of being heard was provided to the assessee.
Sections Cited
250, 1961, 143(3), 69A, 40A(3), 139(1), 143(2), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA
Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA
order
: 10-September-2025 ORDER
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals) [hereinafter referred to as Ld. 'CIT(A)']-NFAC, Delhi passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2017-18 dated 19.10.2023, which has been passed against the assessment order u/s 143(3) of the Act, dated 16.12.2019. 1.1. The Registry has informed that the appeal filed by the assessee is barred by limitation by 515 days. A true copy of an affidavit seeking condonation of delay has been filed by the assessee stating as under:
“I, Sri SAMIRUDDIN KHAN, s/o of Abdul Jabbar Khan residing at J B Hazra Road, Jailkhana More, and Burdwan-713101 do hereby solemnly affirm and declare as follows: