ITO Vs Chunakhali Samabay Krishi Unnayan Samiti Limited (ITAT Kolkata)
Rule 46A Mandatory: Kolkata ITAT Sets Aside CIT(A)’s Cryptic Deletion of ₹2.83 Cr u/s 69B
Appellate Power Is Wide, But Procedure Can’t Be Ignored- No Shortcuts Under Rule 46A:Cryptic Relief Set Aside—AO Must Get Chance to Examine Evidence- Deletion Without Remand Won’t Stand Judicial Scrutiny- ITAT Restores ₹2.83 Cr Investment Case
Kolkata ITAT ‘A’ Bench in ITO Vs. Chunakhali Samabay Krishi Unnayan Samiti Ltd. [ITA No. 803/KOL/2025, AY 2018-19, order dated 31.12.2025] allowed Revenue’s appeal and set aside order of CIT(A) deleting addition of ₹2.83 crore made u/s 69B r.w.s. 115BBE towards unexplained investment and allowing deduction u/s 80LA. Assessee, a primary agricultural cooperative society, had filed return declaring Nil income after claiming deduction u/s 80LA. AO completed assessment u/s 143(3) making addition of ₹2.83 crore on account of unexplained increase in long-term investments and disallowed deduction u/s 80LA due to non-compliance and failure to explain source of investment.
CIT(A) deleted the addition in a brief and cryptic manner by merely observing that difference in opening and closing balance could not be treated as unexplained investment, without recording reasons for admission of additional evidence and without granting AO opportunity to examine such evidence or calling for remand report. Tribunal held that such action was in clear violation of Rule 46A, emphasising that appellate powers are co-terminus with AO but procedural safeguards cannot be bypassed. Holding that CIT(A) failed to examine source of investment and passed a non-speaking order, Tribunal set aside appellate order and restored matter to CIT(A) for fresh adjudication after complying with Rule 46A, granting opportunity to AO and Assessee alike. Revenue’s appeal was allowed
FULL TEXT OF THE ORDER OF ITAT KOLKATA
