ITO, Ward-29(1), Kolkata vs. Puspa Kothari, L/H of Sunder Lal Kothari

Parties Involved

Facts Summary

The assessee, Sunder Lal Kothari, filed a return of income for A.Y. 2013-14 claiming long-term capital gain of Rs.11,87,710/- as exempt income under Section 10(38) of the Income Tax Act. During the assessment proceedings, it was revealed that Sunder Lal Kothari had died on 11.05.2021, leaving behind his mother, Smt. Pushpa Kothari, and his sister, Smt. Rasmi Mundra, as his legal heirs. The Assessing Officer completed the assessment by making additions of Rs.12,64,110/- under section 68 and Rs.37,935/- under section 69C of the Act. Aggrieved by this order, the assessee appealed to the Commissioner of Income Tax (Appeals), who allowed the appeal by deleting the additions made by the Assessing Officer. Dissatisfied, the revenue preferred the present appeal.…

Legal Issues

• 1. Whether the CIT(A) erred in deleting the addition of Rs. 12,64,110/- made u/s 68 of the Income-tax Act by the Assessing Officer.
• 2. Whether the CIT(A) erred in deleting the addition of Rs. 12,64,110/- arbitrarily ignoring the statements of bogus entry provider admitting providing accommodation entries in lieu of Commission.
• 3. Whether the CIT(A) erred in deleting the addition of Rs.37,935/- made w/s 69C of the Income-tax Act by the Assessing Officer.
• 4. Whether the CIT(A) erred while arbitrarily ignoring the modus operandi deployed for providing accommodation entries as unearthed by the Department.
• 5. Whether the case is covered by the exception clause of Para 3.1(h) of the CBDT Circular No.05/2024 dated 15.03.2024.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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