Jasmeet Singh Bhasin Vs DCIT (ITAT Raipur)
The appeal before the ITAT Raipur arose from the order of the CIT(Appeals)/NFAC dated 26.11.2025 for Assessment Year 2023-24. None appeared on behalf of the assessee during hearing, though an adjournment petition was filed and rejected. The Tribunal proceeded to hear the matter after considering the submissions of the Senior Departmental Representative and the material available on record.
The assessee, an individual, had filed a return declaring total income of Rs.85,07,030/-. During assessment proceedings, the assessee submitted bank statements, Form 26AS, income tax return, computation of income, ledger accounts relating to unsecured loans along with confirmations and proof of creditworthiness, stock inventory details, and other documents. The Assessing Officer observed that seven creditors had remained outstanding in the books for more than three years and issued a show cause notice asking why the liabilities should not be treated as income under Section 41(1) of the Income Tax Act on account of cessation of liability.
In response, the assessee furnished details of creditors including PAN, addresses, ledger accounts, and related documents. The Assessing Officer nevertheless made an addition of Rs.7,07,070 under Section 41(1) solely on the ground that confirmations from the creditors regarding the liabilities were not produced.
