M/S. SAHA TEXTILE,KOLKATA vs. DCIT, CIRCLE 49(1),, KOLKATA

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ITA 465/KOL/2025Status: HeardITAT Kolkata02 July 2025AY 2021-22Bench: SHRI RAJESH KUMAR (Accountant Member), SHRI PRADIP KUMAR CHOUBEY (Judicial Member)5 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition was wrongly made as the income was already offered to tax by the assessee. It further noted that the AO/CPC made the addition while processing the return, leading to double taxation.

What were the facts?

The assessee appealed against the order of the CIT(A) upholding an addition made by the AO under Section 41 for cessation of trade liability. The assessee had initially included this amount in its income in the return.

What were the issues?

Whether the addition made by the AO under Section 41 was justified when the income was already offered to tax by the assessee, leading to double taxation?

Which sections of the Income-tax Act were involved?

Section 41,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

For Appellant: Shri S.K. Pransukha, AR
For Respondent: Shri S.B. Chakraborthy, DR
Hearing: 19.05.2025Pronounced: 22.07.2025

(Assessment Year:2021-22) DCIT, Circle-49(1) M/s Saha Textile Aaykar Bhavan, 29, KB Bose road, Uttarapan Complex, Kolkata-700124, Ultadanga Maniktala Civic Vs. West Bengal Centre, Kolkata-700054, West Bengal (Appellant) (Respondent) PAN No. ABYFS8639J Assessee by : Shri S.K. Pransukha, AR Revenue by : Shri S.B. Chakraborthy, DR Date of hearing: 19.05.2025 Date of pronouncement: 22.07.2025 O R D E R Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals) (hereinafter referred to as the “Ld. CIT(A)”] dated 29.10.2024 for the AY 2021-22.

2.

At the outset, we observe from the appeal folder that the appeal is delayed by 63 days by the assessee for which the condonation petition along with affidavit is filed before us. After hearing both the sides and perusing the contents of the affidavit, we are inclined to condone the delay by considering the reasons for delay to be bonafide and genuine.

3.

The issue raised is against the order of ld. CIT (A) upholding the confirmation of addition of ₹1,29,871/- as made by the AO u/s 41 of the Act being cessation of trade liability.

5.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 22.07.2025.

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