Unique Finance Case What TAT Kolkata Ruled on Section 133(6)
The recent TAT Kolkata Section 133(6) order offers clear relief for taxpayers facing unjustified additions. In Unique Finance & Securities’ case, the Tribunal held that additions solely based on non-compliance with a Section 133(6) notice are invalid when the assessee provides complete details otherwise.
Here’s what every taxpayer and tax professional must know about this ruling.
What is Section 133(6) of the Income Tax Act?
- Empowers AO to request information from any person or authority.
- Commonly used during assessments or scrutiny.
- Non-response can invite additions or adverse inference.
Key Facts of Unique Finance Case
| Point | Details |
|---|---|
| Assessee | Unique Finance & Securities |
| Addition Made | ₹7.22 Crore |
| Reason | Non-response to Section 133(6) notices sent to certain parties |
| Assessee’s Claim | Provided full confirmations, bank details, PANs |
| Tribunal Finding | Additions can’t stand if basic evidence is on record |
TAT Kolkata’s Section 133(6) Finding
Addition can’t be automatic: Mere non-response by third parties does not invalidate genuine transactions.
AO’s burden: Must verify details filed by assessee; cannot rely only on third-party non-compliance.
Natural Justice: Dismissing proper evidence breaches principles of fair hearing.
Practical Takeaways for Taxpayers
✔️ Always maintain confirmations, bank statements & PAN details.
✔️ If notices to other parties are unanswered, file all evidence proactively.
✔️ Respond in writing to AO explaining efforts made.
✔️ Appeal unjust additions with legal support.
Expert Tip
“This ruling reinforces that procedural lapses by third parties can’t penalise genuine taxpayers. Maintain complete transaction trails — it’s your best defense during scrutiny.” — Efiletax Compliance Desk
Related Law & Reference
- Section 133(6) of Income Tax Act, 1961
- TAT Kolkata Order: Unique Finance & Securities vs ITO
- CBDT Guidelines on Additions for Non-compliance
(For official text, refer incometaxindia.gov.in)
FAQ: TAT Kolkata Section 133(6)
Q1: What if the party doesn’t reply to AO’s notice?
The AO must examine assessee’s evidence; non-response alone can’t justify addition.
Q2: Can I appeal such additions?
Yes. Cite this ruling as support.
Q3: Is there a penalty for non-response?
For the assessee — no, if you’ve given full details. Third parties may face penalties for non-cooperation.
Summary
TAT Kolkata ruled that Section 133(6) non-compliance by third parties doesn’t justify additions if the assessee provides full details. In Unique Finance’s appeal, a ₹7.22 Cr addition was deleted.
Conclusion
The TAT Kolkata Section 133(6) ruling is a strong precedent for honest taxpayers. Facing similar scrutiny? Consult Efiletax — we help you defend your rights and handle complex tax assessments confidently.