Case Law Details
Babusona Mondal Vs DCIT (ITAT Kolkata)
Introduction: In a recent case, the Income Tax Appellate Tribunal (ITAT) Kolkata addressed an appeal filed by Babusona Mondal against the Assessing Officer’s (AO) addition under Section 69B of the Income Tax Act. The appeal centered on two main issues – unexplained investments and disallowed publicity expenses. This article provides a comprehensive analysis of the case and the ITAT’s ruling.
Detailed Analysis:
1. Background of the Case: Babusona Mondal’s appeal challenges the order of the Commissioner of Income-tax (Appeals)-NFAC, Delhi (CIT(A)) for the Assessment Year 2015-16. The appeal raised two key grounds: a. The addition of Rs. 14,66,622 related to unexplained investments under Section 69B of the Act. b. The addition of Rs. 11,00,120 due to disallowed publicity expenses not accounted for in the receipts.
2. Unexplained Investments – Section 69B: The AO noticed discrepancies in the sales bills and sale ledger, suggesting improper accounting of sales. However, there was no instance of non-recording of sales by the assessee. The AO estimated the suppressed value in stocks at Rs. 29,33,243 and added 50% of this value, totaling Rs. 14,66,622, to the assessee’s income. The CIT(A) upheld the AO’s order.
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