KOLKATA CRAFT COMBINE SOCIETY,KOLKATA vs. ITO, WARD-50(3), KOLKATA

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ITA 882/KOL/2024Status: DisposedITAT Kolkata01 May 2025AY 2017-18Bench: SHRI SONJOY SARMA (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)6 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the orders of the CIT(A) and the Assessing Officer, remitting the matter back to the AO for a fresh de novo assessment. This decision was made to grant the assessee another opportunity to provide submissions, provided no unnecessary adjournments are sought. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, an NGO, faced an addition of Rs. 39,42,500/- under Section 69A for cash deposits made during the demonetization period, despite claiming the cash originated from prior bank withdrawals for artisan payments. The assessee failed to produce books of accounts or a cash book to substantiate its claim. The CIT(A) confirmed the addition, leading to the appeal before the Tribunal.

What were the issues?

Whether the addition under Section 69A for cash deposits during demonetization was justified given the assessee's inability to produce books of accounts, and whether the source of cash from prior bank withdrawals was adequately explained.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 69A,Section 115BBE

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA

order

: May 1st, 2025 ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

1.

This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2017-18 dated 20.02.2024, which has been passed against the assessment order u/s 143(3) of the Act, dated 24.12.2019.

“7. APPELLATE FINDINGS:

4. Rival submissions were heard and the record and the submissions made have been examined. The Ld. AR submitted before us that the assessee imparts education and training to artisans for how to earn livelihood. The only source of income is grants from the State Government and Central Government. It was submitted that during the demonetization period, certain cash which had been earlier withdrawn from the bank itself, was deposited in the bank account subsequently and the details of cash withdrawn could not be filed and the cash book could also not be produced before the Ld. AO. It was submitted that the Ld. AO did not specifically ask for the cash book,

4.

We have considered the rival submissions made. Since the assessee could not produce the cash book before the Ld. AO, therefore,

5.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

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