ITA No. 1379/KOL/2024 (A.Y. 2016-2017)

Parties Involved

Facts Summary

The assessee, Logic Infotech Limited, filed its return of income for the assessment year 2016-17 showing a total income of Rs.7,30,156/-. The Assessing Officer received information that the assessee had received Rs.22,00,000/- from M/s. Puspanjali Hirise Pvt. Limited during the financial year 2015-16. Consequently, the Assessing Officer initiated proceedings under section 147 and issued a notice under section 148. The assessee admitted an income of Rs.7,30,160/- in its return filed on 19.04.2021. A show-cause notice was issued on 24.03.2022, to which the assessee replied on 25.03.2022, denying receipt of Rs.22,00,000/- from M/s. Puspanjali Hirise Pvt. Limited and providing a bank statement as evidence. The Assessing Officer treated the amount as unexplained money and added it to the assessee's income under section 69A read with section 115BBE. The assessee appealed to the Commissioner of Income Tax (Appeals), who allowed the appeal and deleted the addition.…

Legal Issues

• 1. Whether the CIT(A) erred in deleting the addition of Rs.22,00,000/- as unexplained money under section 69A despite the assessee failing to establish the identity and creditworthiness of M/s. Pushpanjali Hirise Pvt. Limited.
• 2. Whether the CIT(A) was incorrect in granting relief and deleting the addition without examining the creditworthiness of the entity from which the funds were received.
• 3. Whether the decision of the CIT(A) is contrary to the judgment of the Hon’ble Division Bench, High Court at Calcutta in ITAT/67/2024 (IA No. GA/2/2024).

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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