Case Law Details
Bijay Kumar Agarwal Vs ITO (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT) Kolkata recently delivered a significant verdict in the case of Bijay Kumar Agarwal versus Income Tax Officer (ITO). The case revolved around the addition of Rs. 32,93,730 under section 56(2)(x) of the Income Tax Act, 1961, by the Assessing Officer (AO). However, the ITAT Kolkata ruled in favor of the assessee, resulting in the deletion of the aforementioned addition.
The dispute arose when the AO, during scrutiny assessment for the assessment year 2018-19, observed that the assessee had purchased an immovable property for Rs. 32,93,730. This information was obtained from the Directorate of Income Tax (Investigation & Criminal Investigation), Mumbai. Despite the assessee’s denial of the transaction, citing inaccuracies in the department’s records, the AO proceeded to add the entire amount to the assessee’s income under section 69 of the Income Tax Act, 1961, treating it as unexplained investment.
Upon appeal to the Commissioner of Income Tax (Appeals) [CIT(A)], the decision was upheld, prompting the assessee to approach the ITAT Kolkata.
During the proceedings before the ITAT Kolkata, the assessee presented substantial evidence, including an allotment letter from the developer and bank statements demonstrating payments made towards the property. It was established that the property was booked in the financial year 2014-15, and payments were made through banking channels.
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