Vishal Jhajharia Vs Assessment Unit (Calcutta High Court)
Calcutta High Court held that petitioner not put to notice in respect of addition made under section 69A of the Income Tax Act as notice was issued making addition u/s. 68. Accordingly, the same is violative of principles of natural justice.
Facts- It is the petitioner’s case that the petitioner was served with a notice dated 21st February, 2024 in respect of A.Y. 2016-17, calling upon the petitioner to show cause as to why a sum of Rs.1,50,45,00,000/- should not be added back to the total income of the petitioner, as unexplained cash credits u/s. 68 of the said Act. The petitioner had duly responded to the said notice by a communication in writing dated 23rd February, 2024 and ultimately the above proceeding culminated in an assessment order dated 20th March, 2024, whereunder a sum of Rs. 1,50,45,00,000/- was added back to the petitioner’s income for the aforesaid Assessment Year on account of unexplained money u/s. 69A of the said Act.
Conclusion- It is seen that although, the revenue authorities had invoked the provisions of Section 69A of the said Act to add back 1,50,45,00,000/- to the petitioner’s income as unexplained money, no notice in this regard had been served prior to taking a decision.
