Reassessment u/s 148 due to credit card payment. Addition deleted in view of returned income

Reassessment u/s 148 due to credit card payment. ITAT directed AO to delete the addition made in view of returned income of the assessee

ABCAUS Case Law Citation:
ABCAUS 3197A (2019) (12) ITAT

The instant appeal was filed by the assessee against the order of the CIT(A) in the matter of order passed U/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (the Act). The grievance of the assessee inter alia was addition made by the Assessing Officer (AO) in respect of payments made by credit card.  

The assessee was a widow lady having income from property and interest income. For the A.Y. under consideration, the A.O. reopened the assessment on the ground that the assessee had made large payment against credit card. In reply to notice issued u/s 148, the assessee filed her return of income.

The Tribunal observed that The AO had made addition in respect of credit card payment of Rs. 3,65,117/-. It was noted that the assessee had declared following income during the earlier and current years:  

The Tribunal noted that during the year under consideration, the assessee had shown income of Rs. 7,37,772/- and the total income for the last three years as shown by the assessee was Rs. 46,70,477/-.

The Tribunal opined that the income declared by the assessee was sufficient to take care of credit card payment. Accordingly, the Tribunal direct the A.O. to allow credit card payment.

Download Full Judgment Click Here >>

• Non-deduction of TDS does not make transaction as unexplained in the hands of deductee – ITAT
• Last date to submit MEF 2026-27 extended to 09.09.2026
• Validity of demand u/s 156 for default u/s 115-O, if assessment order u/s 143(3) has Nil demand
• Issue already examined and adjudicated by CIT(Appeals), can’t be reopened on same set of facts
• TDS can’t be denied for non deposit of tax deducted by the deductor – High Court