Devranjan Mittra Vs Assessment Unit (ITAT Delhi)
The appeal was filed by the assessee, Devranjan Mittra, through his wife Ms. Sagorika Mittra after his death, against the order dated 22.07.2025 passed by the National Faceless Appeal Centre (NFAC), Delhi. The appeal arose from the assessment order dated 12.03.2025 passed under Section 143(3) read with Section 144 of the Income Tax Act, 1961, for Assessment Year 2023-24. The assessment had followed scrutiny under CASS after a difference was noticed between the rental income declared by the assessee and the rental receipts reflected in Form 26AS.
The assessee had explained that he held properties both in his individual capacity and in the status of HUF. Against gross rent receipts of ₹1,89,54,186, ₹1,45,92,690 was declared as income in the HUF status, while the balance rental income was offered to tax in the assessee’s individual hands. The Assessing Officer rejected this treatment, reasoning that the assessee belonged to the Bengali community and that there was no concept of HUF under the Dayabhaga School of Law. The Assessing Officer accordingly treated the relevant rental income as belonging to the assessee and made an addition of ₹27,40,147 under the head “House Property”. Penalty proceedings under Section 270A read with Section 274 were also initiated separately. The CIT(A) sustained the addition, primarily observing that the assessee had failed to produce details, documents or submissions at the appellate stage.
