DHANANJOY DAS ADHIKARI,PURBA MEDINIPUR V. ITO WARD 27(2) HALDIA, HALDIA

ITA 2570/KOL/2025

AI Insights

The case involves an appeal by the revenue against the order of the CIT(A) which confirmed the addition of Rs.17,55,000 to the income of Dhananjoy Das Adhikari, a retired principal suffering from dementia. The addition was based on unexplained cash deposits in his bank accounts. The assessee's representative argued that these were transfers between the assessee's own accounts, a fact supported by the bank statements provided. The Tribunal, considering the advanced age and health condition of the assessee, and the fact that the transactions were intra-account transfers, decided not to restore the matter to the Assessing Officer but to delete the addition.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829075 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Kolkata
• Assessment Year: misc
• Appeal Filed On: 06-11-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT ADHIKARY
• Assessee Lawyers: SUGATA ROY
• Section: 142(1)

Judgement Text

" आयकर अपीलीय अधिकरण, “एस.एम.सी” न्यायपीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA श्री जाजज माथन, न्याययक सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अपील सं/ITA No.2570/KOL/2025 (नििाारण वर्ा / Assessment Year :2017-2018) Dhananjoy Das Adhikari, Flat No.R/9, Purbachal Housing Estate, Cluster IV, Sector-3, North 24 Parganas, WB-700097 Vs ITO Ward-27(2), Haldia PAN No. :ACRPD 0831 B (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Sugata Roy, AR राजस्व की ओर से /Revenue by : Shri Abhijit Adhikary, Sr. DR सुनवाई की तारीख / Date of Hearing : 13/01/2026 घोषणा की तारीख/Date of Pronouncement : 13/01/2026 आदेश / O R D E R This is an appeal filed by the revenue against the order dated 17.09.2025, passed by the ld.Addl./JCIT(A)-5, Chennai, for the assessment year 2017-2018. 2. It was submitted by the ld AR that the assessee is a retired Principal of Palpara College, Midnapore. It was the submission that he retired in 2004. He is suffering from dementia. He is under treatment. The assessee had a habit of withdrawing his pension from the bank account and depositing it in other accounts. Ld.AR drew my attention to page 39 of the paper book which is copy of the bank statement with Finacle wherein on 01.09.2016 the assessee has withdrawn Rs.9 lakhs from his bank account. The ld. AR further drew my attention to page 35 of the paper book which is the copy of the bank statement with Contai Cooperative Bank Ltd. wherein on 02.09.2016 the assessee had deposited Rs.9 lakhs. Ld.AR further drew my attention to page 39 of the paper book wherein on 08.11.2016 the Printed from counselvise.com ITA No.2570/KOL/2025 2 assessee has withdrawn Rs.3,40,000/- and at page 75 the assessee has against deposited Rs.3,54,000/- on 10.11.2016 in Contai Cooperative Bank Ltd. It was the submission that such withdrawals from one bank account and depositing into another bank account was the problem that has been caused by the assessee. It was the submission that now the assessee is bedridden. It was the submission that in the course of assessment the Assessing Officer had issued notice u/s.143(2) of the Act and 142(1) of the Act wherein the assessee has to explain the cash deposit in the bank account. The assessment order had been passed in 2019. It was the submission that the assessee’s wife has categorically intimated the Assessing Officer that the assessee is suffering from dementia and he is hospitalized. The Assessing Officer in para 3.1 of his order has extracted the three bank accounts and the cash deposit therein without considering the transfer deposits and had arrived at an addition of Rs.17,55,000/-. It was the submission that each entry where the cash has been deposited has a contra withdrawal entry. It was the submission that the assessee admittedly could not provide the details before the Assessing Officer as he was not assisted by his authorized representative. The assessee’s wife’s reply was not accepted by the Assessing Officer and the addition has been made. It was the submission that when the appeal was before the ld. CIT(A) the assessee was again hospitalized and the assessee’s wife was no more. It was the submission that there was no one to look after the affairs of the assessee and this has led to the confirmation of the assessment order also. Ld.AR submitted that every entry can be explained and he has Printed from counselvise.com ITA No.2570/KOL/2025 3 also taken me to the bank accounts which shows the various transactions which shows that the cash withdrawals from one bank account and deposits into the other accounts. It was the submission that the addition as made by the Assessing Officer and as confirmed by the ld. CIT(A) is liable to be deleted. 3. In reply, ld. Sr. DR submitted that the issues may be restored to the file of the ld.AO for examination. 4. I have considered the rival submissions. The assessee is admittedly is 80 years of old person. He is suffering from dementia and no practical purpose would be served in restoring the issues in this appeal to the file of the Assessing Officer, especially when the bank accounts were available before the Assessing Officer and the transactions were also co-related with the bank accounts. This co-relation has also been shown by the ld.AR on behalf of the assessee. This being so, as it is noticed that the deposits into the bank account were from the other bank accounts of the assessee, I am of the view that the addition in the impugned appeal is not called for. Consequently, the addition as made by the ld.AO and as confirmed by the ld. CIT(A) stands deleted. 5. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 13/01/2026. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 13/01/2026 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.2570/KOL/2025 4 आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "