SMT. ANISHA AGRAWAL,KOLKATA V. ACIT, CIR. 3(2), GANGTOK

ITA 218/KOL/2024

AI Insights

This case involves Smt. Anisha Agarwal, a resident of Sikkim, whose income for the Assessment Year 2017-18 was assessed by the AO under best judgment assessment due to non-filing of return. The AO assessed her income at Rs. 59,77,559, which included unexplained money and a percentage of her total turnover. The assessee contended that her income was exempt under Section 10(26AAA) of the Income Tax Act, believing she was not required to file a return. The First Appellate Authority dismissed her appeal ex-parte. Both parties agreed to a de novo examination by the AO.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 469663 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 26-09-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 05-02-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Bonafide belief
• Section: 142(1); 69A; 139

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” 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. 218/Kol/2024 Assessment Year: 2017-18 Smt. Anisha Agarwal (PAN: ATOPA 3708 A) Vs. ACIT, Circle-3(2), Gangtok Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 26.09.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 09.10.2024 For the Appellant/ Ǔनधा[ǐरती कȧ ओर से Shri S. Jhajharia, A.R For the Respondent/ राजèव कȧ ओर से Smt. Monalisha Pal Mukherjee, JCIT ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 26.12.2023 for the AY 2017-18. 2. At the outset, the Ld. Counsel for the assessee stated that the assessee is in the resident of Sikkim and her income is exempt u/s 10(26AAA) of the Act. The Ld. A.R further submitted that the assessee during the impugned assessment year has deposited cash of Rs. 1,21,04,200/- in her bank account including the deposits during 2 I.T.A. No. 218/Kol/2024 Assessment Year: 2017-18 Smt. Anisha Agarwal demonetization period of Rs. 20,33,000/-. Accordingly, the AO issued notice u/s 142(1) of the Act on 22.02.2018 calling upon the assessee to prepare a true and correct return in respect of which the assessee is assessable under the Act for AY 2017-18. But the assessee failed to file the return either u/s 139 or in response to notice u/s 142(1). Finally, the AO made the best judgment assessment u/s 144(1)(b) of the Act on the basis of material gathered assessing the income at Rs. 59,77,559/- which comprised of Rs. 23,51,640/- being 8% of total turnover of Rs. 2,93,95,498/- and Rs. 36,25,919/- u/s 69A as unexplained money. 3. Before the First Appellate Authority, the case was ex-parte and the appeal was dismissed in liminie by the Ld. CIT(A). 4. The Ld. A.R submitted that the assessee was bonafide belief that the assessee is not required to file return of income under the Act in view of the provisions of Section 10(26AAA) of the Act which exempts the bonafide residents from paying any income tax under the Act. The Ld. A.R therefore prayed that the case of the assessee may be restored to the file of AO so the necessary documents/evidences could be filed and the income assessed after taking into account the document / evidences. 5. The Ld. D.R on the other hand relied on the orders of authorities below by fairly conceded that since the proceedings were culminated ex-parte before both the authorities below and therefore he has no objection if the appeal is restored to the file of AO for de novo examination. 6. After hearing the rival contentions and perusing the material on record, we find that the AO has made the best judgment assessment by gathering material from third parties when the assessee failed to appear and file necessary evidences and return of income. Similarly the First appellate authority decided the case ex-parte and dismissed the same in liminie when the assessee failed to appear. In the interest of justice and fair play, we deem it fit to restore the appeal back to the file of AO to frame the assessment afresh and de novo after taking into account the evidences which may be filed by the assessee. 3 I.T.A. No. 218/Kol/2024 Assessment Year: 2017-18 Smt. Anisha Agarwal 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 9th October, 2024 Sd/- Sd/- (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) (Rajesh Kumar/राजेश क ुमार) Judicial Member/ÛयाǓयक सदèय Accountant Member/लेखा सदèय Dated: 9th October, 2024 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Smt. Anisha Agarwal, C/o, M/s Salarpuria Jajodia & Co., 7, C.R. Avenue, 3rd Floor, Kolkata- 700072 2. Respondent – ACIT, Circle-3(2), Gangtok 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "