A AND M HOME SOLUTION PRIVATE LIMITED. ,KOLKATA V. ITO,WD-7(1), KOLKATA. , KOLKATA

ITA 1121/KOL/2023

AI Insights

This case involves an appeal by A & M Home Solution Private Limited against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, which sustained the addition of Rs.83,52,140 as unsecured loans to the assessee's income under section 68 of the Income Tax Act, 1961 for the Assessment Year 2012-13. The assessee argued that part of the loan, amounting to Rs.67,00,000, was taken in the preceding previous year and should not be added to the subsequent year's income as unexplained. The Tribunal noted the absence of the assessee at multiple hearings and decided to restore the issue to the file of the Assessing Officer, conditional upon the payment of a cost of Rs.10,000 by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32876 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ARUN KUMAR MEENA
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 250; 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No. 1121/KOL/2023 Assessment Year: 2012-13 A & M Home Solution Private Limited 85, City High, Prince Anwar Shah Road, Tollygunge, Kolkata-700033. (PAN: AAFCA0673B) Vs ITO, Ward-7(1), Kolkata (Appellant) (Respondent) Present for: Appellant by : N o n e Respondent by : Shri Arun Kumar Meena, Addl. CIT, Sr. DR Date of Hearing : 06.03.2025 Date of Pronouncement : 06.03.2025 O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/NFAC/S/250/2022-23/1049822468(1) dated 16.02.2023 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2012-13. 2. None appeared on behalf of the assessee and Shri Arun Kumar Meena, Addl. CIT, Sr. DR appeared on behalf of the revenue. 3. Appeal of the assessee is time barred by 183 days. A separate condonation petition along with an affidavit has been placed on file. After 2 ITA No. 1121/Kol/2023 A&M Home Solutions Pvt. Ltd., AY: 2012-13 considering the averments made in the condonation petition and the reasons stated by the Ld. AR for the delay in filing the appeal is convincing and hence, we condone the delay and admit the appeal for hearing. 3. The assessee is a private limited company and filed its return of income for the AY 2012-13 on 24.09.2012 declaring its total income of Rs.3,41,475/-. The Assessing Officer made the addition of Rs.83,52,140/- as unsecured loans and added back to the total income of the assessee u/s. 68 of the Act. On Appeal, Ld. CIT(A) sustained the addition as made by the Assessing Officer. Aggrieved assessee is now in appeal before us on the following grounds: “1. That the order of the National Faceless Appeal Centre (NFAC) is contrary to law and the facts of the appellant’s case in so far as it relates to addition on account of unexplained cash credit. 2. That on the facts and in the circumstances of the case the National Faceless Appeal Centre (NFAC) has erred in confirming the order of the Assessing Officer regarding the addition of Rs.83,52,140/- made by the learned Assessing Officer on account of unsecured loan received by the appellant as unexplained cash credit and the same should be deleted. 3. That on the facts and circumstances of the case the NFAC has totally ignored the fact that out of the unsecured loan of Rs.83,52,140/-, the loan amount of Rs.67,00,000/- having been taken in the preceding previous year cannot be added back under section 68 to subsequent year income by claiming them as unexplained. 4. That the appellant craves leave to add, alter or modify the ground of appeal any time before or at the time of hearing of the appeal.” 4. We find from the appeal record that this appeal of the assessee has been fixed several times earlier but on the request of the assessee the case was adjourned. Today, at the time of hearing also none appeared on behalf of the assessee. Since the assessee despite providing sufficient opportunities of hearing before the Tribunal did not present itself in the appellate proceedings, keeping this in mind and also treating this attitude against the principles of natural justice, however, we are of the view that assessee should be granted one more opportunity. This being so, the issue 3 ITA No. 1121/Kol/2023 A&M Home Solutions Pvt. Ltd., AY: 2012-13 in this appeal is restored to the file of the Assessing Officer subject to the assessee paying a cost of Rs.10,000/- to the Income Tax Authorities under challan 500 within sixty days from the date of this order and the receipt of the same would be produced before the Assessing Officer. Should the assessee not pay the abovementioned cost of Rs. 10,000/- within the prescribed period of sixty days from the date of this order, the order of the Ld. CIT(A) shall stand confirmed. 5. In the result, the appeal of the assessee is allowed for statistical purpose subject to above directions. Order dictated and pronounced in the open court. Sd/- Sd/- (Rakesh Mishra) (George Mathan) Accountant Member Judicial Member Dated: 6th March, 2025 JD, Sr. P.S. Copy to: 1. The Appellant: A & M Home Solution Private Limited 2. The Respondent. ITO, Ward-7(1), Kolkata 3. CIT(A), NFAC, Delhi 4. Pr. CIT 5. DR, ITAT, Kolkata Bench, Kolkata 6. Guard file. True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "