Rotluanga Stephen Vs ITO (ITAT Kolkata)
In Rotluanga Stephen vs. ITO, the ITAT Kolkata addressed two appeals related to an addition of ₹8,27,933 under Section 69A of the Income Tax Act, 1961, and a penalty of ₹63,957 under Section 271AAC(1). The Assessing Officer (AO) had treated the cash deposits in a Federal Bank account as unexplained, attributing them to the assessee, a Catholic Bishop and senior citizen. However, the bank account in question was in the name of Seva Kendra, Silchar, a society for which the assessee acted as chairperson. The AO’s addition was based solely on the fact that the assessee’s PAN was used for KYC purposes.
The tribunal reviewed the evidence, including the Seva Kendra’s tax returns and bank account details, and found that the deposits were related to the society’s activities, not the assessee’s personal income. Accordingly, ITAT deleted the addition under Section 69A, as well as the penalty, which was deemed invalid due to the absence of any taxable addition. The tribunal emphasized the importance of substantiating claims with proper documentation and allowed the appeals in favor of the assessee.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
Both these appeals filed at the instance of the assessee pertaining to the Assessment Year (in short “AY”) 2017-18 are directed against the separate orders passed u/s 250 of the Income Tax Act, 1961 in short the “Act”) by Ld. Commissioner of Income-tax, (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short Ld. “CIT(A)”] dated 25.08.2023 arising out of the assessment order and penalty order framed u/s. 147 r.w.s 144/144B and u/s. 271AAC(1) of the Act by ITO, Ward-1, Jorhat dated 16.03.2022 and 19.09.2022 respectively.
