Manzar Hossain Khan Vs. ACIT, Circle-25, Kolkata

Parties Involved

Facts Summary

The assessee, Manzar Hossain Khan, filed his return of income for AY 2015-16 declaring a total income of Rs. 22,65,490/-. His case was selected for limited scrutiny due to a substantial increase in capital compared to the previous year. The Assessing Officer (AO) asked for details including the capital account ledger, but the assessee did not furnish any supporting evidence. Consequently, the AO concluded that the introduction of capital was a device used by the assessee to avoid taxes and added an amount of Rs. 2,79,55,490/- under section 68 of the Act. The AO also examined sundry creditors shown as Rs. 1,39,38,818/- and assessed the income of the assessee at Rs. 13,00,62,780/-. Aggrieved by this order, the assessee appealed to the Commissioner of Income Tax (Appeals)- NFAC, Delhi, whose order was dismissed due to no response from the assessee. The assessee then appealed to the ITAT.…

Legal Issues

• 1. Whether the delay in filing the appeal should be condoned?
• 2. Whether the assessee should be given an opportunity to present his case before the AO?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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