SANGHAMITRA HAZRA,BURDWAN V. I.T.O., WARD - 1(4), BURDWAN, BURDWAN

ITA 1176/KOL/2024

AI Insights

The case revolves around an appeal by Sanghamitra Hazra against the order of the CIT(A), which confirmed the AO's addition of Rs.6,37,363 as unexplained money. This amount was claimed to be unsecured loans from relatives. The AO had initially accepted other deposits as sales proceeds but questioned the nature of these loans. The Tribunal, after reviewing the evidence including the ITRs of the lenders, concluded that the loans were legitimate and from closely related parties, thus setting aside the CIT(A)'s decision and allowing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126276 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MADHUMITA DAS
• Assessee Lawyers: SOMNATH GHOSH
• Keywords: Set aside; HRA

Judgement Text

" आयकर अपीलीय अधिकरण,“एस.एम.सी” न्यायपीठ,कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.1176/KOL/2024 (नििाारण वर्ा / Assessment Years : 2017-2018) Sanghamitra Hazra, C/o S.N.Ghosh&Associates,Advs 2, Garstin Place, 2nd Floor, Suite No.203, Off Hare Street, Kolkata-700001 Vs ITO, Ward-1(4), Burdwan PAN No. :AFMPH 2536 K (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररतीकीओरसे /Assessee by : Shri Somnath Ghosh & Shri Sarnath Ghosh, Advocates राजस्वकीओरसे /Revenue by : Ms. Madhumita Das, Addl.CIT सुनवाई की तारीख / Date of Hearing : 17/04/2025 घोषणा की तारीख/Date of Pronouncement : 21/04/2025 आदेश / O R D E R This is an appeal filed by the assessee against the order dated 23.02.2024, passed by the ld. Addl./JCIT(A)-2, Ludhiana, for the Assessment Year 2017-2018. 2. At the outset, on perusal of the appeal record, it is found that the appeal of the assessee is filed belatedly by 29 days. Looking to the facts and circumstances of the case, we condone the delay of 29 days in filing the present appeal on being delayed for genuine and bonafide reasons. The appeal of the assessee is admitted for hearing. 3. The only issue raised in this case is against confirmation of addition of Rs.6,37,363/- by the ld. CIT(A) as made by the AO u/s.69A of the Act in respect of unexplained money. 4. Facts in brief are that the assessee filed the return of income which was selected for scrutiny for the reason of ‘large cash deposits in bank ITA No.1176/KOL/2024 2 accounts during the year.’ Accordingly, statutory notices were issued along with the questionnaire to the assessee. The AO observed that Rs.1,30,54,346/- was deposited by the assessee in his bank account and accordingly the assessee was called upon to explain the same. The assessee replied to the notice by submitting that the cash was deposited out of the sale proceeds of the assessee except unsecured loan of Rs.6,37,363/- which were raised from the relatives. The AO accepted the cash deposited in the bank account to be sales proceeds however added the unsecured loans taken by the assessee from relatives as unexplained money u/s.69A of the Act. In the appellate proceedings, the ld. CIT(A) confirmed the order of the ld. AO on this issue. 5. After hearing the rival contentions of the parties and perusing the material on record, we find that the addition made by the AO of Rs.6,37,363/- was on account of loans taken by the assessee from three persons, details of which are given at page 5 of the paper book. We note that all the three parties were closely related to the assessee, one is brother-in-law, second is husband of the assessee and third is maternal uncle of the assessee. We find that the loans taken from the above persons on various dates as per the requirement of the assessee in the business. Copies of the loan creditors are available at pages No.6 & 7 of the paper book. The assessee has also filed copy of the ITRs of the above three lenders before us. Having considered all these details, we find that the view taken by the AO and the ld. CIT(A) is apparently ITA No.1176/KOL/2024 3 contradictory to the facts on record. Therefore, we set aside the order of the ld. CIT(A) and direct the AO to delete the addition. 8. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 21/04/2025. Sd/- (RAJESH KUMAR) लेखा सदस्य/ACCOUNTANT MEMBER कोलकाताKolkata; ददनाांक Dated 21/04/2025 Prakash Kumar Mishra, Sr.P.S. आदेशकीप्रनतललपपअग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी/ The Appellant- 2. प्रत्यर्थी/ The Respondent- 3. आयकरआयुक्त(अपील) / The CIT(A), 4. आयकरआयुक्त/ CIT 5. विभागीयप्रविविवि, आयकरअपीलीयअविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्डफाईल / Guard file. सत्यापपतप्रतत //True Copy// "