JUGAL CHANDRA SAIKIA,GUWAHATI vs. INCOME TAX OFFICER, WARD-1(3), GUWAHATI
Facts
The assessee's income was reassessed with additions for AY 1992-93 and 1993-94 due to alleged involvement in the LOC scam, based on CBI charge sheets and estimated pecuniary benefits. The CIT(A) confirmed these additions. The assessee contested that the additions were speculative, made without conclusive evidence of income or finality in the criminal proceedings still pending in various courts.
Held
The Tribunal acknowledged that criminal proceedings against the assessee were still ongoing, with appeals pending in higher courts, and no final quantification of pecuniary gains. It ruled that no income could be deemed to have accrued until a clear finding from the competent criminal courts. Consequently, the Tribunal set aside the CIT(A)'s order and remanded the appeals back to the CIT(A) for fresh adjudication after the conclusion of the criminal proceedings.
Key Issues
The key legal issue was whether income additions based on alleged scam involvement could be sustained when criminal proceedings were pending and no pecuniary gain was conclusively proven or quantified. It also concerned the timing of tax assessments relative to the finality of criminal investigations.
Sections Cited
Section 250, Section 143(3), Section 147, Section 254, Section 251, Section 154, Section 148(2), Section 153(2A), Rule 34(4) of Income Tax (Appellate Tribunal) Rules, 1963, Section 120B IPC, Section 420 IPC, Section 471 IPC, Section 13(2) r.w. 13(1)(d) of the Prevention of Corruption Act
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Income Tax Appellate Tribunal, GUWAHATI BENCH AT KOLKATA
Before: SRI MANOMOHAN DAS & SRI RAKESH MISHRA
आयकर अपीलीय अधिकरण गुवाहाटी पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH AT KOLKATA [वर्ुअल कोटु] [Virtual Court] श्री मनमोहन दास, न्याधयक सदस्य एवं श्री राकेश धमश्रा, लेखा सदस्य के समक्ष Before SRI MANOMOHAN DAS, JUDICIAL MEMBER & SRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. Nos.: 258 & 259/GTY/2018 Assessment Years: 1992-93 & 1993-94 Jugal Chandra Saikia ITO, Ward-1(3), Guwahati Vs. (Appellant) (Respondent) PAN: AUBPS5282M Appearances: Assessee represented by : Uttam Kumar Borthakur, Adv. Department represented by : Kausik Ray, JCIT. Date of concluding the hearing : January 2nd, 2024 Date of pronouncing the order : January 27th, 2025 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: Both these appeals filed by the assessee are against the separate orders of the Commissioner of Income Tax (Appeals), Guwahati [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 1992-93 & 1993- 94 dated 29.06.2018, which have been passed against the assessment
The assessee is in appeal before the Tribunal raising the following grounds of appeal: I. I.T.A. No. 258/GTY/2018; AY 1992-93: “1 For that, on the facts and in the circumstances, the learned Commissioner of Income Tax (Appeals), Guwahati-1, Guwahati ["CIT(A)" for short hereafter] has erred in law and in fact in dismissing the appeal and thereby confirming the assessment order, as held by him to be passed under section 143 (3) read with Sections 147 and 254, by the learned Assessing Officer ("AO" for short hereafter) on the pleas that: (A) the Appellant could not submit the judgements of the sub-judge within the time limit; (B) the learned CIT(A) had no other option but to sustain the assessment order in view of the fact that the Honourable Court had not passed any orders in the said cases; and (C) the request of the appellant to keep the appeal pending in the interest of justice could not be entertained by the learned CIT(A) in view of governmental policies and norms to be followed in respect of disposal of appeals. 2. For that, on the facts and in the circumstances, the learned Commissioner of Income Tax (Appeals), Guwahati-1, Guwahati ["CIT(A)" for short hereafter] has erred in law and in fact in confirming the assessment order dated 20/12/2016 that was liable to be set aside and quashed. 3. For that, on the facts and in the circumstances of the case, the learned CIT(A) has erred in law and in fact in confirming the assessment of the revised income at Rs.340270/- against the returned income of Rs.47150/-. The addition to income of Rs.293117/- is liable to be deleted in full. As otherwise, the addition made to income is excessive. For that, on the facts and in the circumstances of the case, the learned CIT(A) has erred in law in fact in confirming the assessment order whereby an amount of Rs.176177/- was added back to the income of the appellant in spite of the fact that such addition had been made relying solely on the
Assistant Registrar ITAT, Kolkata Benches Kolkata
