MANOJ KUMAR AGARWAL L/H OF LATE MAHESH PRASAD AGARWAL ,KOLKATA V. A.C.I.T., CIRCLE - 26(1), KOLKATA, KOLKATA

ITA 1483/KOL/2024

AI Insights

The case involves an appeal by Manoj Kumar Agarwal against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which confirmed additions made by the Assessing Officer under sections 69 of the Income Tax Act, 1961, for the Assessment Year 2017-18. The additions pertained to undisclosed purchases amounting to Rs. 39,57,741 and profit on these purchases amounting to Rs. 1,73,348. The assessee contested these additions, arguing that there were no undisclosed purchases or profits, and that the facts had been misconstrued by the lower authorities. The Tribunal, after considering the complex calculations and arguments presented, decided to restore the matter to the Assessing Officer for a fresh assessment, emphasizing the need for accurate facts in tax assessments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25428 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VINEET KUMAR
• Assessee Lawyers: P. K. HIMMATSINGHKA
• Section: 143(1); 69

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA [Before Shri Rajesh Kumar, AM& Shri Sonjoy Sarma, JM] I.T.A. No. 1483/Kol/2024 Assessment Year: 2017-18 Manoj Kumar Agarwal L/H of late Mahesh Prasad Agarwal Z/3/247, Jalia Para Road, Bagdi Para Road Crossing, Kolkata-700044 (PAN: ADCPA2708C) Vs. ACIT, Circle-26(1), Kolkata Appellant Respondent Date of conclusion of Hearing 20.02.2025 Date of Pronouncement 25.02.2025 For the Assessee Shri P. K. Himmatsinghka, AR For the Revenue Shri Vineet Kumar, Addl. CIT ORDER Per Shri Rajesh Kumar, AM The appeal filed by the assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi dated 07.06.2024 for AY 2017-18 arising out of assessment order passed u/s. 143(1) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) by ACIT, Circle 26(1), Kolkata dated 28.12.2019. 2. The assessee has raised various grounds challenging the addition confirmed by the ld. CIT(A) on merit namely, Rs.39,57,741/- on account of undisclosed purchases u/s. 69 of the Act and Rs.1,73,348/- on account of profit on undisclosed purchases. Ld. Counsel for the assessee placed before the Bench a very complex calculation in support of his grounds of appeal, wherein it was submitted that there was no difference in purchases and, therefore, no undisclosed purchases or undisclosed profit and the Assessing Officer as well as the ld. CIT(A) has misconstrued the facts of the case and hence, the addition by the Assessing Officer and further confirmed by the Ld. CIT(A) were totally based on the wrong appreciation of facts. Therefore, the Ld. Counsel for the assessee submitted that the issue may be referred to 2 ITA No. 1483/Kol/2024 Manoj Kumar Agarwal, AY 2017-18 and got verified from the Assessing Officer by restoring the same to the file of the Assessing Officer. 3. The Ld. DR, on the other hand, strongly opposed the restoration of the case on the ground that assessee was given sufficient opportunity before both the authorities below. However, the details were not filed before the authorities below and, therefore, the request of the assessee may kindly be ignored. 4. After hearing the rival contentions and perusing the material on record, we find that the stock summary for the year ended 31.03.2017 is containing details of opening balance (quantity, rate and value), Inwards (quantity, rate and value), outwards (quantity, rate and value) and closing balance (quantity, rate and value) and, therefore, the issue requires verification at the level of the Assessing Officer as no income can be assessed on wrong facts. Therefore, we restore the issue to the file of the Assessing Officer with a direction to decide the same de novo after taking into account the evidences/explanation furnished by the assessee. Accordingly, we restore the issue to the file of the Assessing Officer with a direction to decide the appeal on merit after affording reasonable opportunity of hearing to the assessee. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 25th February, 2025 Sd/- Sd/- (Sonjoy Sarma) (Rajesh Kumar) Judicial Member Accountant Member Dated: 25th February, 2025 JD, Sr. PS Copy of the order forwarded to: 1. Appellant– Manoj Kumar Agarwal, L/H of late Mahesh Prasad Agarwal 2. Respondent – ACIT, Circle-26(1), Kolkata 3. CIT(A), NFAC, Delhi 4. Pr. CIT 5. DR, ITAT, Kolkata, True Copy By Order Assistant Registrar "