Case Law Details
Manash Nandi Vs ITO (ITAT Kolkata)
We find that the AO has recorded the reasons u/s 148 of the Act in a very casual manner. We find that the AO has only reproduced in the reasons recorded the information received and hurriedly came to the conclusion that there exists escapement of income and evasion of tax without any application of mind and further stated that hence this matter is taken up u/s 147 of the Act. In our considered opinion the reopening of assessment cannot me made in a casual and whimsical manner. The AO has to apply his mind to the information if received by the AO. Moreover, the balance of equity is also in favour of the assessee who is a marginal labour/ employee of meager means drawing salary of Rs. 4,500/- per month. How the person of such scarce resources can deposit more than seven crores in cash in his bank account. The AO has completely failed to examine and verify as to who is the real person behind all this and thus has made the addition in a very casual manner. The Ld. Counsel of the assessee also brought to our notice that a complaint lodged before the Posta Police Station in Kolkata on 20.09.2014 informing the police that the assessee is a marginal labour and his bank account was misused by his employer and his friend Shri Narendra Aggarwal narrating the entire facts. Under these circumstances and facts we are of the view that ends of justice could be made if the issue is examined in detail by the AO by affording a reasonable opportunity to the assessee and assess the income in accordance with law. Accordingly we set aside the order of the Ld. CIT(A) and restore the issue back to the file of the AO with the direction to examine the matter again and get to the truth and decide the issue afresh.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the Commissioner of Income Tax(Appeals)-6, Kolkata [hereinafter referred to as ‘CIT(A)’] dated 03.11.2016 for the assessment year 2011-12.
2. The assessee has challenged the order of Ld. CIT(A) on merit in the various grounds assailing the confirmation of addition of Rs. 7,03,75,500/- as made by the AO on account of unexplained investment u/s 69 of the Income Tax Act, 1961 (hereinafter referred to as the Act).
Please become a Premium member. If you are already a Premium member, login here to access the full content.
