MANJIRA BANERJEE,KOLKATA V. A.C.I.T CENTRAL CIRCLE - 4(3), KOLKATA

ITA 2387/KOL/2024

AI Insights

The case involves Manjira Banerjee, who appealed against the order of the Commissioner of Income Tax (Appeals) -27, Kolkata, which confirmed an addition of Rs. 3,02,940 as undisclosed investment for the Assessment Year 2016-17. The addition was initially made by the AO following a search and seizure operation under sections 132 and 133A of the Income Tax Act, 1961. The Tribunal found that the investment in question, made in FY 2009-10, was disclosed in the subsequent financial year and that only the interest accrued should be taxed, not the principal amount.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711412 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained investment; Search and seizure
• Section: 142(1); 132; 153A; 133A

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 2387/Kol/2024 Assessment Year: 2016-17 Manjira Banerjee (PAN: AHWPB 0149 E) Vs. ACIT, Central Circle-4(3), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 16.07.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 24.07.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Sripal Kumar, A.R For the revenue / राजèव कȧ ओर से Shri P. N. Barnwal, CIT DR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeals), -27, Kolkata (hereinafter referred to as the Ld. CIT(A)] dated 20.09.2024 for AY 2016-17. Printed from counselvise.com 2 I.T.A. No. 2387/Kol/2024 Assessment Year: 2016-17 Manjira Banerjee 2. Brief facts of the case of the assessee is that the assessee had filed her return of income on 15.03.2017 u/s 139(1) of the I.T. Act 1961 disclosing total income of Rs. 7,93,860/- and said return was processed u/s 143(1) of the Act on 31.05.2017. Later, a search and seizure operation u/s 132 and survey operation u/s 133A of the Act was conducted on 16.07.2016 and subsequent dates upon the assessee as a part of ‘Amitava Banerjee & Others Group of cases.’ Later the case was centralized on the Central Circle- 4(3), Kolkata on 20.10.2016. Further, a notice u/s 153A was issued and duly served upon the assessee and requesting to the assessee to file return of income. In response to the same the assessee had filed the return for the instant AY on 28.04.2018 declaring total income of Rs. 7,93,860/- same i.e. earlier. Subsequently, notices u/s. 143(2) and u/s 142(1) of the Act were issued to the assessee along with questionnaire. The A/R of the assessee appeared time to time and case was discussed by the AO. Later, the AO had passed the assessment order u/s 153A r.w.s143(3) on 26.12.2018 determining a total income of Rs. 10,96,910/-. On perusal of the assessment order, it is noticed that the A.O. had made only one addition viz a) Rs. 3,02.940/- in the form of Undisclosed Investment in MIS. 3. Aggrieved by the said assessment order , the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 4. The Ld. A.R challenges the very impugned order thereby submitting that the AO as well as Ld. CIT(A) has erred in confirming the addition of Rs. 3,02,940/- in the undisclosed investment ignoring the fact that investment of Rs. 1,98,000/- was made in the year 2009-10 which after maturity comes to Rs. 3,02,940/-. The Ld. A.R further submits that the Ld. CIT(A) has erred in confirming the addition ignoring the fact that the investment was made during FY 2009-10 and added accrued interest therein in the AY 2016-17. 3. Contrary to that the Ld. D.R though supports the impugned order but consider to this fact that amount at Rs. 3,02,940/- was in fact come after maturity amount invested Printed from counselvise.com 3 I.T.A. No. 2387/Kol/2024 Assessment Year: 2016-17 Manjira Banerjee by the assessee in the year 2009-10 and that was an amount of Rs. 1,98,000/-. The Ld. DR has considered to this fact only interest accrued on the fixed deposit shall be added into the income of the assessee. 4. Upon hearing the submission of the counsel of the respective parties, we have perused the order of lower authorities and find that in course of search and seizure operation books of account/ documents were seized and on perusal of the seized material invested in MIS of Rs. 4,33,500/- (1,98,000/- + 2,35,500/-) was found during FY 2010- 11. It is observed by the Ld. CIT(A) that the assessee has not disclosed investment in MIS of Rs. 1,98,000/- during FY 2009-10 in the balance sheet and it is a fact that said investment in MIS got matured in FY 2015-16. It is further important to mention here that assessee has been requested to explain why Rs. 1,98,000/- should not be treated as unexplained investment and added to the total income. There is no denying to this fact that investment was made in FY 2009-10 and maturity amount come in FY 2015-16 i.e. amount of Rs. 3,02,949/-. We are in consonance with the view of the department that only the interest amount should be taken into consideration for taxation and not the entire amount. 5. Keeping in view of the above discussion, we are remitting the appeal of the assessee to the file of AO for fresh verification after affording an opportunity to hear the assessee and considering the fact that in maturity amount only interest accrued at the amount shall be taken into consideration for taxation and not the entire amount. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 24th July, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 24th July, 2025 SM, Sr. PS Printed from counselvise.com 4 I.T.A. No. 2387/Kol/2024 Assessment Year: 2016-17 Manjira Banerjee Copy of the order forwarded to: 1. Appellant- Manjira Banerjee, FE 216, Sector-3, Bidhan Nagar, 1B Market, S.O. Salt Lake-700106 2. Respondent – ACIT, Central Circle-4(3), Kolkata 3. Ld. CIT(A)-27, Kolkata 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata Printed from counselvise.com "