Partha Sarkar Vs ITO (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT), Kolkata Bench, in the case of Partha Sarkar vs. ITO, has deleted an addition of made to the assessee’s income as unexplained money under Section 69A of the Income Tax Act. The Tribunal’s ruling hinged on the fact that the assessee, an interior decorator, had already offered the disputed amount to tax by including it in his total receipts/income.
ITAT Deletes Lakh Addition Made Under Section 69A
The assessee, Partha Sarkar, an interior decorator, filed his Return of Income (ITR) for the Assessment Year (AY) 2018-19, declaring an income of . During the relevant financial year, the assessee received in his bank account, which was recorded as an unsecured loan from M/s. Allium Vintrade Pvt. Ltd., routed through M/s. Goldensons Trading Pvt. Ltd.
The case was reopened under Section 147 of the Act, and the Assessing Officer (AO) concluded that the lakh receipt was an “accommodation entry”—a transaction that merely simulates a genuine loan—and added the entire amount to the assessee’s income as unexplained money under Section 69A of the Act. The AO passed the order under Section 147 read with Section 144 (best judgment assessment) due to the AO’s dissatisfaction with the evidence provided. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the addition, noting the assessee’s failure to furnish supporting evidence during the appellate proceedings.
