Kishan Lal Vs NFAC (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi has directed a fresh investigation into the case of Kishan Lal, an assessee appealing an addition of Rs. 50 lakh to his income, stemming from a highway robbery incident. The tribunal, noting that the Commissioner of Income-tax (Appeals) [CIT(A)] had passed an ex-parte order, emphasized the need for a thorough examination of the evidence, including police reports and affidavits from farmers claiming ownership of the stolen cash.
The appeal, filed by Kishan Lal for Assessment Year 2018-19, challenged the CIT(A)’s ex-parte order that confirmed an addition of Rs. 50,00,000 under Section 69A of the Income Tax Act, 1961, and the consequent charging of tax under Section 115BBE, along with interest under Sections 234A and 234B.
The assessee’s counsel presented a synopsis detailing the circumstances. It was stated that Kishan Lal was a victim of a highway robbery where Rs. 50 lakh in cash was stolen. While the robbers were later apprehended and Rs. 30,38,000 was recovered, they admitted to having looted Rs. 50,00,000.
Crucially, Kishan Lal, in his statement, clarified that only Rs. 5 lakh of the robbed amount belonged to him, derived from his own resources. The remaining sum, he asserted, belonged to various farmers for whom he acted as a commission agent, selling their farm produce in Delhi and collecting their sales proceeds. The counsel provided the balance sheet and profit & loss account of the firm M/s Shankar Lal and Sons, where Kishan Lal is a partner, showing commission income. A copy of the firm’s registration with the Commercial Tax Department, indicating its nature of business as a commission agent, was also submitted.
