M/S. STARBURST MOTORS PVT. LTD.,KOLKATA vs. D.C.I.T., CIRCLE - 14(2), KOLKATA, KOLKATA

Brief facts of the case are that the return of income was e-filed showing total income of ₹46,83,010/-. The assessee is a dealer of Maruti Suzuki and earns revenue from operations and sale of motor cars, lubricants and receipts in the form of service charges. A sum of ₹1,05,52,000/- (inadvertently mentioned as ₹1,05,52,0000/- on page 2 of the assessment order) was found deposited in the bank account during the demonetisation period up to 30.12.2016 and the explanation ITA No.: 1519/KOL/2024 Assessment Year: 2017-18 M/s. Starburst Motors Pvt. Ltd. filed by the assessee was not accepted and the sum was added u/s 68 of the Act to the total income of the assessee. Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A), who dismissed the appeal of the assessee as the assessee failed to explain the nature and source of the cash deposits and as the assessee had not furnished any written submission in support of the claim.

Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal.

Rival contentions were heard and the submissions made have been examined. At the outset, the Ld. AR submitted that no show cause notice was served for the addition of ₹10,52,222/- by the Assessing Officer (hereinafter referred to as Ld. 'AO') nor is there any mention of issue of any such notice by the Ld. AO while the hearing was conducted from 18.09.2018 to 15.11.2019. The Ld. AR has filed a paper book and it was requested by him that the matter may be remanded to the Ld. AO as the principles of natural justice were violated and the assessee has sufficient evidence for the relief claimed. The Ld. DR relied upon the order of the Ld. CIT(A) and requested that the same may be upheld.

We have considered the facts of the case, the submissions made and the documents filed. In the interest of justice and fair play it was considered that were more opportunity may be provided to the assessee to explain the source of cash deposit and the request of the assessee to set aside the case before the Ld. AO may be allowed so that a proper opportunity of being heard may be provided. Hence, after examining the facts of the case, we deem it appropriate to set aside the order of the Ld. CIT(A) and remit the matter back to the Ld. AO for making the reassessment de novo. Needless to say, the assessee shall be given a reasonable opportunity of being heard to make any further submission ITA No.: 1519/KOL/2024 Assessment Year: 2017-18 M/s. Starburst Motors Pvt. Ltd. it wants to make in support of its grounds of appeal and shall not seek unnecessary adjournments. Accordingly, all the grounds taken by the assessee in his appeal are allowed for statistical purposes.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 29th January, 2026. [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 29.01.2026 Bidhan (Sr. P.S.) ITA No.: 1519/KOL/2024 Assessment Year: 2017-18 M/s. Starburst Motors Pvt. Ltd. Copy of the order forwarded to:

CIT(A)-NFAC, Delhi.

CIT-

CIT(DR), Kolkata Benches, Kolkata.

Guard File. //// By order