IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM ITA No.1894/KOL/2025 (Assessment Year: 2016-17)

Suresh Kumar Banthia DCIT, CC 4(3), Kolkata

147 Banthia House Mahatma Aaykar Bhawan Poorva, Gandhi Road, Burra Bazar

110 Shantipally, Kolkata-700107, Vs.

Calcutta, Kolkata-700007, West Bengal West Bengal (Appellant) (

Respondent)

PAN No. AEVPB2317L CO No. 75/KOL/2025 (Arising in ITA no. 1894/KOL/2025 for A.Y. 2016-17)

Suresh Kumar Banthia DCIT, CC 4(3), Kolkata

147 Banthia House Mahatma Aaykar Bhawan Poorva, Gandhi Road, Burra Bazar Vs. 110 Shantipally, Kolkata-700107, Calcutta, Kolkata-700007, West Bengal West Bengal (Appellant) (

Respondent)

Assessee by : Shri SM Surana, AR Revenue by : Shri Sanat Kumar Raha, DR Date of hearing: 04.12.2025 Date of pronouncement: 13.01.2026

O R D E R

Per Rajesh Kumar, AM:

This is an appeal preferred by the Revenue and Cross Objection filed by the assessee against the order of the Commissioner of Income-tax (Appeals), Kolkata-27 (hereinafter referred to as the “Ld.

CIT(A)”] dated 31.03.2025 for the AY 2016-17.

2. At the outset, we observe from the appeal folder that there is a delay of 20 days in filing the appeal by the department in support of which a condonation petition was filed. It was stated in the condonation petition that the delay has occurred due to obtaining the administrative approvals from the competent authorities, which took quite a long time and accordingly, the delay may be condoned. The ld. AR, on the other hand, did not oppose the condonation of delay. Considering the reasons cited before us, we are inclined to condone the delay and admit the appeal for hearing.

3. The issue raised by the Revenue in ground no.1 is against the order of ld. CIT (A) annulling the assessment framed u/s 147 of the Income-tax Act, 1961 (the Act) by the ld. AO on the ground of being invalid and void ab initio without considering the facts on record.

3.1. The facts in brief are that the assessment in this case was originally completed on 31.12.2018 u/s 143(3)/153A. There was search in the case of some finance brokers Kasera and Sanwaria on 30.11.2018. During the course of said search, some documents/papers were found and seized. Their statements were also recorded with regard to their modus operandi of arranging cash loans. However, none of the brokers in their statement named the assessee as loan provider or loan taker nor in any of the seized papers the name of the assessee .i.e. Suresh Kumar Banthia was found/appeared. Thereafter there was a survey conducted u/s 133A on 19.2.2020 on the assessee and his group concern namely Citizen Umbrella Mfg Co Ltd. In the course of survey, some papers with identification mark SKB/1 and 2 were found from the assessee and CUML/1 and 2 from Citizen Umbrella were impounded. Statement of the assessee was recorded u/s 133A on 20.2.2020 wherein the assessee admitted having given initial loan of Rs. 1.60 crores as noted by the AO vide para 5.4.8 (Page 48 of assessment order) in FY 2016-17 which was rotated periodically. The Ld. ADIT recorded that initial loan of Rs. 3.00 crores was given in December 2017 or July 2018 through finance brokers as noted by the AO vide Q 22 of page 49 of Assessment order. In the statement recorded on 20.2.2020, the assessee also admitted to make disclosure of Rs. 50.00 crores however, the assessee retracted the said statement by filing affidavit before the ADIT on 24.2.2020 i.e. within 3 days which is available in page 66-78 of Paper book. The Ld. AIDT thereafter did not record any further statement.

3.2. The assessment was reopened u/s 148 on 26.3.2021 for which reasons were recorded available from page 201-204 of the paper book. The reasons stated that there was search operation on finance brokers Sanwaria and Kasera group on 30.11.208 and that incriminating documents pertaining to Citizen group were seized and further that Suresh Kumar Bathia alias Jain was the main person of Citizen gr