REKHA SAHA,RAIGANJ vs. ACIT, CC-2(4), KOLKATA
In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The tribunal held that the assessee is not entitled to telescoping benefit as the cash in hand was neither declared nor taxed in the earlier year, and the assessment order was quashed. The assessee failed to explain the source of post office deposits.
What were the facts?
The assessee claimed telescoping benefit for unexplained post office deposits in subsequent assessment years, based on an addition for enhanced cash in hand in an earlier year. However, the earlier assessment order was annulled due to limitation.
What were the issues?
Whether telescoping benefit can be claimed for unexplained deposits based on an earlier addition that was subsequently annulled due to limitation.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, KOLKATA
Before: DR. MANISH BORAD, HON’BLE & SHRI SONJOY SARMA, HON’BLE
O R D E R
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The present appeals are directed at the instance of the assessee against the separate orders of the Learned Commissioner of Income Tax (Appeals) – 26, Kolkata, (hereinafter the “ld. CIT(A)”) dt. 27/12/2023 for Assessment Year 2015-16 and 28/12/2023 for Assessment Year 2016- 17, passed u/s 250 of the Income Tax Act, 1961 (“the Act”). 2. Though the assessee has raised various grounds of appeal for Assessment Year 2015-16 and 2016-17 but the grievance of the assessee 2 I.T.(SS).A. 26/Kol/2024 Assessment Year: 2015-16 I.T.A. 585/Kol/2024 Assessment Year: 2016-17 Rekha Saha only revolves around the addition made for unexplained deposit in the post office account at Rs. 4,08,014/- for Assessment Year 2015-16 and Rs.6,35,990/- for Assessment Year 2016-17, respectively.
3. At the outset, the ld. Counsel for the assessee submitted that the assessment orders have been framed u/s 153C of the Act and search was carried out in the case of the assessee’s husband and in the assessment framed for Assessment Year 2010-11, u/s 153C r.w.s. 143(3) of the Act dt. 18/12/2017, the addition for enhanced cash in hand was made at Rs. 18,64,800/-. He submitted that against such addition for enhanced cash in hand, the assessee deserves telescoping benefit in the subsequent year for the alleged deposit in post office account. On the other hand, the ld. D/R vehemently argued supporting the orders of the lower authorities. He also submitted that assessment order for Assessment Year 2010-11 has subsequently been annulled by the ld. CIT(A) on the ground of limitation.
4. We have heard rival contentions and perused the material placed before us. We fail to find any merit in both the appeals of the assessee for the reason that assessee has claimed telescoping benefit against the addition of cash in hand for Assessment Year 2010-11. However, this plea of the assessee is incorrect because, the assessee has never declared the cash in hand of Rs.18,64,800/- in the return for Assessment Year 2010-11 furnished in compliance to notice u/s 153C of the Act. The additions were made by the Assessing Officer but the assessment order was subsequently quashed by the ld. CIT(A) on the ground of limitation period. Therefore, the assessee has neither offered
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