SK. Rezzak Vs ITO (ITAT Kolkata)
ITAT Kolkata Deletes Double Addition Made under Section 69A on Cash Deposits During Demonetization; Wrong Invocation of Section 69A: ITAT Kolkata Rules Cash Deposits Were from Accounted Sales; ITAT Kolkata Condones 25-Day Delay and Allows Appeal Against Unjust Section 69A Addition; ITAT Kolkata: Cash Sales Deposited in Bank Cannot Be Taxed Again under Section 69A; ITAT Kolkata Holds Section 69A Inapplicable to Recorded Cash Sales; ITAT Kolkata Quashes CIT(A)’s Enhanced Addition of ₹18.47 Lakh for Double Taxation; Tribunal Cautions Against Misuse of Section 69A for Business Cash Deposits; ITAT Kolkata Upholds Principle That Accounted Sales Cannot Be Taxed Twice.
This appeal before the Income Tax Appellate Tribunal (ITAT), Kolkata, challenged the order dated December 12, 2024, passed by the Ld. Additional/Joint Commissioner of Income Tax (Appeals)-9, Mumbai [“Ld. Addl./JCIT(A)”], concerning the assessment of SK. Rezzak.
Condonation of Delay
The assessee filed the appeal with a delay of 25 days. A condonation petition was submitted, explaining that after receiving the order on December 12, 2024, the documents were given to the regular advocate. Due to urgent pre-occupation and subsequent care for an ailing relative at a distant location, the initial advocate referred the matter to the present advocate on February 26, 2025. Following discussions, requisition of documents, and confirmation of the final draft, the appeal was filed on March 24, 2025. The ITAT accepted the reasons mentioned in the petition, condoned the delay, and admitted the appeal for adjudication.
