VISHNU PUROHIT,KOLKATA V. I.T.O., WARD 61(1), KOLKATA

ITA 630/KOL/2024

AI Insights

The case involves Vishnu Purohit, who did not initially file a return of income for the Assessment Year 2016-17, claiming his income was below the taxable limit. However, following information from the Investigation Wing, the AO reopened the case under section 148 of the Income Tax Act. Purohit subsequently filed a return declaring an income of Rs. 23,760, despite having deposited Rs. 3,08,01,906 in cash, which he claimed was from sales and had been accounted for. The AO assessed his income at Rs. 3,67,55,555, adding Rs. 3,65,18,293 as income from unexplained sources. The CIT(A) dismissed Purohit's appeal due to non-submission of required details. The Tribunal, upon reviewing the submissions and the circumstances, decided to restore the case to the AO for a fresh assessment after proper verification of the documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35926 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Business income
• Section: 147; 2

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “ए’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” 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. 630/Kol/2024 Assessment Year: 2016-17 Vishnu Purohit (PAN: AMSPP 9468 R) Vs. ITO, Ward-61(1), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 11.03.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 26.03.2025 For the assessee /Ǔनधा[ǐरती कȧ ओर से Shri Miraj D Shah, A.R For the revenue / राजèव कȧ ओर से Shri Abhijit Adhikary, Addl. CIT ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeals)- NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 24.01.2024 for AY 2016-17. 2. Brief facts of the case of the assessee is that the assessee being an individual did not file its return of income, as his income was below the taxable income. The AO based on the information of Investigation Wing, the case was reopened by issuing notice u/s 2 I.T.A. No. 630/Kol/2024 Assessment Year: 2016-17 Vishnu Purohit 148 of the Act. In response to the notice u/s 148 of the Act the assessee filed return of income for AY 2016-17 declaring total income of Rs. 23,760/-. The assessee has submitted in number of reply that the cash deposited of Rs. 3,08,01,906/- is towards sales and has been duly accounted in the computation of income and since the net income of the assessee is below the taxable unit hence return has not been filed. The AO completed the assessment u/s 147 read with Section 144B of the Act by assessing total income of Rs. 3,67,55,555/- after making an addition of Rs. 3,65,18,293/- on account of cash deposit. 3. Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed by observing that in respect of giving opportunity to the assessee, details have not been furnished. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 4. The Ld. A.R instead of arguing into the merit of the case has submitted that the alleged cash deposit has been duly accounted in the computation of income and according to him it is a fit case to re-verify by the AO after giving an opportunity to the assessee to be heard. The Ld. Counsel submits that during the course of appellate proceeding the assessee could not be able to submit the document as asked by the Ld. CIT(A). His prayer is to restore the case back to the file of AO for re-verification and for afresh adjudication. 5. Contrary to that the Ld. D.R though supports the impugned order but did not raise any objection in restoring the appeal of the assessee to the file of AO. 6. Upon hearing the submission of the counsel of the respective parties, we have perused the order of AO as well as Ld. CIT(A). The AO added cash deposit of Rs. 3,65,18,293/- by observing that the assessee has not brought any corroborative evidence on record to substantiate its business income along with source of cash deposit. Before the Ld. CIT(A), it has been observed thus: “4. During the course of appeal proceedings, hearing notices were sent on various dates i.e. 08.06.2022, 12.07.2022, 09.11.2022 and 26.12.2023. In the notice dated 26.12.2023, the 3 I.T.A. No. 630/Kol/2024 Assessment Year: 2016-17 Vishnu Purohit appellant was specifically asked to produce profit and loss account, Balance Sheet, copy of the bank account reflecting the transaction, cash book, purchase and sales ledger etc. On 18.01.2024, the appellant filed adjournment letter wherein he requested to adjourn the case after 15.01.2024. Accordingly, the case was adjourned to 19.01.2024. However, the appellant failed to respond once again.” 7. Going over the facts of the case, order passed by both the authorities below and submission placed by the Ld. A.R, we are inclined to restore the case of the assessee before the AO to pass a afresh order after proper verification of the documents filed by the assessee. Accordingly, the order passed by the AO confirmed by the Ld. CIT(A) are hereby set aside. The AO is directed to pass a afresh order after proper verification of the documents filed by the assessee. The assessee is directed to place all those necessary documents before the AO and co-operate in the proceedings. In the result, the appeal filed by the assessee allowed for statistical purposes. Order is pronounced in the open court on 26th March, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 26th March, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Vishnu Purohit, 146, Sahid Binoy Bose Road, Basdroni, South 24 parganas-700070 2. Respondent – ITO, Ward-61(1), Kolkata 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "