SNEHA SHAW,KOLKATA vs. ITO, WARD-33(5), KOLKATA, KOLKATA

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ITA 1115/KOL/2023Status: HeardITAT Kolkata05 January 2024AY 2017-18Bench: Shri Sanjay Garg, Judicial Member and Rajesh Kumar (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and remanded the matter back to the Assessing Officer. The Assessing Officer was directed to give the assessee a proper opportunity to present her case and furnish requisite details.

What were the facts?

The assessee's bank account showed unexplained credits of Rs. 1,95,75,000/-. The assessee claimed these were out of sale proceeds from her readymade garments business but could not furnish sufficient details to the Assessing Officer.

What were the issues?

Whether the addition on account of unexplained credits was justified without providing the assessee a proper opportunity to explain the source of funds, especially when jurisdiction changed abruptly.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH KOLKATA

Before: Shri Sanjay Garg & Rajesh Kumar

order : January 05, 2024 आदेश / ORDER संजय गग�, �या�यक सद�य �वारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 21.08.2023 of the National Faceless Appeal Centre (hereinafter referred to as the ‘CIT(A)’) passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).

2.

The short dispute involved in this appeal is relating to the addition made by the Assessing Officer and further confirmed by the CIT(A) of Rs. 1,95,75,000/- on account of unexplained credits in the bank account of the assessee.

3.

The Assessing Officer observed that the account of the assessee was found credited of Rs.19575000/- out of which a sum of Assessment year: 2017-18 Sneha Shaw Rs.1,57,90,000/- was credited by way of transfer of amount from other accounts and Rs.37,85,000/- by cash. However, the assessee could not furnish the requisite details and explanations regarding the source of the aforesaid credits in his bank account. He, therefore, made the impugned additions which has been further confirmed by the CIT(A).

4.

At the outset, the ld. Counsel for the assessee has submitted that the assessee could not comply with the notice and furnish the required details before the Assessing Officer as the jurisdiction of the Assessing Officer was abruptly changed without notice to the assessee and even without any order passed to this effect by the competent authority. The ld. Counsel has further submitted that though the assessee furnished the requisite details before the CIT(A) and submitted that the aforesaid credits were out of the sale proceeds relating to the business of the assessee, however, the ld. CIT(A) failed to consider the above submissions. 4.1 The ld. Counsel for the assessee has further submitted that the assessee is a trader in readymade garments. That the assessee during the year has made purchase of readymade garments and sold the readymade garments. That the deposits in the bank account of the assessee were out of the sale proceeds. The ld. Counsel has submitted that the aforesaid contentions of the assessee have not been examined by the lower authorities. He has, therefore, submitted that the assessee may be given an opportunity to present her case before the Assessing Officer and to furnish the requisite details regarding the source of the deposits in the bank account of the assessee.

5.

The ld. DR has not objected to the same.

Assessment year: 2017-18 Sneha Shaw

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