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Income tax

ITAT Kolkata Sets Aside CIT(A) Order in Bahalnagar SKUS Limited Case

Strategic Insights

— 1 min read

In a significant development, the Income Tax Appellate Tribunal (ITAT) - Kolkata has set aside the order of the Commissioner of Income Tax (Appeals) in the case of Bahalnagar SKUS Limited for Assessment Year 2018-2019. The Tribunal has remitted the matter back to the file of the CIT(A) with a direction to provide one more opportunity to the assessee to substantiate its claim. The assessee had claimed an income of Rs. 10,160/- but the Assessing Officer determined the total income at Rs. 38,98,00,818/-.

Key Takeaways:

  • The ITAT Kolkata has set aside the order of the CIT(A) in the case of Bahalnagar SKUS Limited for Assessment Year 2018-2019.
  • The Tribunal has remitted the matter back to the file of the CIT(A) with a direction to provide one more opportunity to the assessee to substantiate its claim.
  • The assessee had claimed an income of Rs. 10,160/- but the Assessing Officer determined the total income at Rs. 38,98,00,818/-.
  • The Tribunal noted that the assessee failed to comply with the notices issued by the Assessing Officer and the CIT(A), and that the balance sheet and profit & loss accounts of the assessee did not support the huge cash withdrawals claimed.
  • The Tribunal also cautioned the assessee to promptly co-operate with the proceedings before the CIT(A) failing which the CIT(A) shall be at liberty to pass an appropriate order in accordance with law and merits.
  • The grounds raised by the assessee were allowed for statistical purposes.

Statistics:

  • The ITAT Kolkata set aside the order of the CIT(A) on June 24, 2025.
  • Assessment Year: 2018-2019.
  • Income claimed by assessee: Rs. 10,160/-.
  • Total income determined by Assessing Officer: Rs. 38,98,00,818/-.
  • Balance with Allahabad bank: Rs. 2,83,906/-.
  • Balance with Axis Bank: Rs. 1,11,107/-.
  • Total liabilities and borrowings of the assessee: Rs. 2,30,92,500/- and Rs. 1,96,56,530/- respectively as on 31.03.2018.
  • Sales made during the year: Rs. 7,02,325/-.

Sources:

  • "ITAT-Kolkata: Bahalnagar SKUS Limited". [2]
  • "IN THE INCOME TAX APPELLATE TRIBUNAL, 'A' BENCH, KOLKATA". [1]

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