M/S A D ELECTROSTEEL CO. PVT LTD. V. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1(1), KOLKATA AND ANR

ITAT/248/2024

AI Insights

The case involves an appeal by the revenue against the order of the Income Tax Appellate Tribunal, Kolkata, which dismissed a miscellaneous application filed by the assessee, A D Electrosteel Co. Pvt Ltd., for recalling an earlier order due to non-prosecution. The Tribunal had noted a significant delay in the filing of the application and the absence of any appearance on behalf of the assessee despite notice. The revenue challenged the Tribunal's decision, arguing that there was a reasonable cause for the non-appearance. The High Court of Calcutta, presided over by Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das), decided not to entertain the appeal at this juncture but allowed the appellant to file a restoration application.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 670899 (HC-CALCUTTA)
• Appeal Type: Others
• Pronouncement Date: 06-05-2025
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: PRITHU DUDHORIA
• Assessee Lawyers: EINA DEY; ALISHA DAS; SAMRAT DAS
• Keywords: Ex parte order; High-pitched assessment; Income Tax; Miscellaneous Application; Non-prosecution
• Section: 260A

Judgement Text

"1 O-24 IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION [INICOME TAX] ORIGINAL SIDE ITAT/248/2024 IA NO: GA/1/2024 M/S A D ELECTROSTEEL CO. PVT LTD. VS THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1(1), KOLKATA AND ANR. BEFORE : THE HON'BLE THE CHIEF JUSTICE T.S SIVAGNANAM -A N D- HON'BLE JUSTICE CHAITALI CHATTERJEE (DAS) DATE : 6th May, 2025. Appearance: Ms. Eina Dey, Adv. Ms. Alisha Das, Adv. Mr. Samrat Das, Adv. …for the appellant. Mr. Prithu Dudhoria, Adv. …for the respondent/revenue. The Court : This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act) is directed against the order dated April 22, 2024 passed by the Income Tax Appellate Tribunal “B” Bench, Kolkata (the Tribunal) in M.A. No. 121/Kol/2023 arising out of I.T.A. No.854/Kol/2017 relating to the assessment year 2012-13. The revenue has raised the following substantial questions of law for consideration : 2 “b) Whether the Learned Tribunal was justified in law in not recalling the ex-parte order passed by the Ld. Tribunal on April 22, 2024 when there was a reasonable cause for non-appearance on the date of hearing of the appeal? c) Whether, on the facts and in the circumstances of the case, the Ld. Tribunal was justified in dismissing the miscellaneous application when your petitioner has sufficient cause for ‘non-appearance on the date of hearing of the appeal? We have heard Ms. Eina Dey, learned Counsel assisted by Ms. Alisha Das and Mr. Samrat Das for the appellant/assessee and Mr. Prithu Dudhoria, learned standing Counsel for the respondent/revenue. The assessee filed a miscellaneous application in MA No./121/Kol/2023 for recalling an order passed by the learned Tribunal dated 20th August, 2018 by which the appeal filed by the assessee against the order passed by the Commissioner of Income Tax(Appeals)-VI, Kolkata dated 03.11.2016 was dismissed for non-prosecution. The learned Tribunal by the impugned order noted that the registry of the Tribunal has put up a note stating that there is a delay of 1757 days and no one has put up appearance on behalf of the assessee despite notice. Therefore, the learned Tribunal refused to entertain the application and the same was dismissed. In the said application in MA No./121/Kol/2023 the first ground raised by the assessee to set aside the order passed by the Tribunal dismissing the appeal for non-prosecution vide order dated 20.08.2018 was on the ground that no hearing notice was received by the assessee. Prima facie, it appears that there was no proper explanation for non-appearance of the assessee in MA No./121/Kol/2023 that too 3 considering the fact that the assessment was high pitched assessment and the assessing officer appears to have considered several issues and completed the assessment by order dated 25.03.2015. However, it will be open for the assessee to approach the learned Tribunal for setting aside the order dated 22nd April, 2024 in MA No./121/Kol/2023 which was in effect dismissed for non-appearance. Therefore, we are not inclined to entertain this appeal at this juncture, but, however, we grant liberty to the appellant to file an appropriate application for restoration of MA No./121/Kol/2023 and if the same is filed within 30 days from the date of receipt of the server copy of this order, the learned Tribunal is requested to consider the application on merits and take a decision. Consequently, the appeal stands disposed of. The substantial questions of law are left open. The application IA No. GA/1/2024 stands closed. . (T.S. SIVAGNANAM) CHIEF JUSTICE (CHAITALI CHATTERJEE (DAS), J.) mg/spal "