Question 1

What are the key legal issues in Bhagya Kalita vs. ACIT, Central Circle-1, Guwahati?

Accepted Answer

1. Whether the additions made by the AO based on survey operation under section 133A are valid? 2. Whether the AO can take action under sections 147/148 of the Act?

Question 2

What are the facts of Bhagya Kalita vs. ACIT, Central Circle-1, Guwahati?

Accepted Answer

This case pertains to a batch of five appeals concerning the assessment years 2015-16 to 2019-20. The assessee, Bhagya Kalita, was subjected to a search and seizure operation on 22.12.2020, leading to assessments being framed under sections 153A/143(3) of the Income Tax Act, 1961. The Assessing Officer (AO) made additions to the income based on information from a survey operation under section 133A of the Act, treating certain loans as assessable income under section 68 and disallowing interest expenses. The assessee challenged this decision before the Commissioner of Income Tax (Appeals)-Central NER, Guwahati, which upheld the AO's decision. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT), arguing that the AO's orders were based on material obtained under section 133A, which is not permissible for framing assessments under section 153A.

Bhagya Kalita vs. ACIT, Central Circle-1, Guwahati

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