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The Calcutta High Court reportedly upheld the Income Tax Appellate Tribunal’s decision to delete an enhanced ₹11.35 crore addition under Section 69A of the Income-tax Act, 1961, arising from alleged off-book cash loans and related interest. The reported ruling turned on the evidence in this case: the Tribunal found gaps in the connection between seized papers, a retracted survey statement and the assessee’s income, and the High Court reportedly found no perversity or substantial question of law.
The procedural details below are reported by Juris Hour and LawLens. The complete High Court judgment and case number were not securely located, so the reported dates, figures and evidentiary details should not be treated as independently verified against the official order.
What the reported decision means
The High Court’s reported outcome leaves in place the ITAT Kolkata “D” Bench’s direction to delete the addition. It is a case-specific evidentiary result, not a rule that seized records or a retracted statement can never support an income-tax addition. The reported reasoning was that the material and statements in this record did not adequately establish the alleged unexplained money and lending activity attributed to the assessee.
Juris Hour reports that the High Court treated the Tribunal’s conclusions as factual findings and found no perversity or substantial question of law warranting interference. That distinction matters: the ITAT assessed the record and made factual findings; the High Court’s reported review was not a fresh calculation of the alleged loans.
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How the addition grew from the assessment to the appeal
The dispute concerned Assessment Year 2020–21. According to Juris Hour, the assessee returned income of ₹1,74,57,470. The Assessing Officer reportedly made two additions under Section 69A: ₹3,01,59,831 for alleged unexplained money used for cash lending and ₹4,46,38,775 for related interest. Together, those initial additions were ₹7,47,98,606.
The Commissioner of Income Tax (Appeals)-27, Kolkata reportedly enhanced the addition to ₹11.35 crore, using impounded records to identify a peak credit. The ITAT Kolkata “D” Bench directed deletion of the addition on 18 September 2025. LawLens reports that the High Court decision was dated 5 October 2026; Juris Hour published its account on 6 October 2026.
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Why the evidence was disputed
The alleged lending was not established simply by the existence of papers or a statement. As Juris Hour reports the ITAT’s findings, the key question was whether those items were sufficiently connected to this assessee’s income for the relevant year and supported by other evidence.
Seized material and its timing
The papers reportedly originated in a search on premises associated with Uma Shanker Kasera, Anil Kumar Kasera and Jai Bhagawan Sanwaria on 30 November 2018—before the financial year relevant to Assessment Year 2020–21. The Tribunal reportedly found that the material did not relate to the assessee’s income assessment for that year and that the Assessing Officer had not supplied substantive corroboration for the entries.
The survey statement and retraction
A survey reportedly took place on 19 February 2020. The assessee is reported to have retracted the survey statement by affidavit on 24 February 2020, disputing the records’ relevance and alleging coercion. The reported ruling does not establish that retraction alone invalidates a statement; the statement was considered alongside the surrounding record and the alleged lack of corroboration.
Other reported gaps in corroboration
Juris Hour says the Tribunal noted that statements were not taken from Gajraj Choraria and Pawan Mundhhra, although they were named and their contact details were available. It also reportedly found that the records did not establish an investment by the assessee and that the assessment did not explain the origin of funds said to have passed through a person named Satish. These are procedural and evidentiary details reported by the publisher, not independently checked against the judgment.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the ruling does—and does not—say about evidence
Juris Hour reports that the High Court recognized that tax proceedings are not bound by strict technical rules of evidence, while still requiring evidentiary principles and natural justice to be observed. It says the Court relied on Dhakeswari Cotton Mills Ltd. v. Commissioner of Income Tax, Omar Salay Mohamed Sait v. Commissioner of Income-tax and Chuharmal v. Commissioner of Income Tax.
The reported result should therefore be read narrowly. It does not mean that a retracted statement is automatically unusable, that seized papers are inherently insufficient, or that every addition based on a peak-credit calculation must fail. The reported basis was the Tribunal’s assessment of the connection, corroboration and gaps in this particular record, followed by the High Court’s reported conclusion that those factual findings disclosed no perversity or substantial question of law.
What remains unverified
The available legal-news accounts do not securely establish the High Court appeal number, complete judgment, exact operative language, bench or case identifiers. The reported date and detailed procedural and evidentiary chronology should be confirmed against the official judgment before being cited as primary-source facts. No verbatim judicial quotation is verified here.
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