A V ISPAT PRIVATE LIMITED,PATNA V. ACIT CENTRAL CIRCLE 2 PATNA, PATNA

ITA 222/PAT/2023

AI Insights

The case involves AV Ispat Private Limited, which appealed against the order of the Commissioner of Income-tax (Appeals) dated 28.04.2023. The appeal was directed against an assessment order under Section 143(3) of the Income-tax Act, 1961, dated 14th March, 2022, concerning the assessment year 2014-15. The primary contention in the appeal was the wrongful addition of Rs 25,00,084 as income from an unsecured loan, which the assessee argued was unjustly treated as income. The Tribunal noted the absence of the assessee's representation in multiple hearings and acknowledged the need for a detailed examination of the merits, which was lacking in the CIT(A)'s order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472593 (ITAT-PATNA)
• Duration Of Justice: 1 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-09-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 14-07-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHWANI KUMAR
• Keywords: Set aside; Reassessment proceedings; Unexplained cash credit; Assessment record
• Section: 147; 143(3); 250

Judgement Text

" आयकर अपीलीय अधिकरण न्यायपीठ, पटना। IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH, PATNA BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT & DR. MANISH BORAD, ACCOUNTANT MEMBER I.T.A. No. 222/PAT/2023 Assessment Year: 2014-15 AV Ispat Private Limited Agamkuan, Patna-800007 Bihar [PAN: AACA9469P] Vs ACIT, Central Circle-2 Patna-800001, Bihar अपीलार्थी/ (Appellant) प्रत्‍ यर्थी/ (Respondent) Assessee by : None Revenue by : Ashwani Kumar, DR सुनवाई की तारीख/Date of Hearing : 05.09.2024 घोषणा की तारीख /Date of Pronouncement : 30.10.2024 आदेश/O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER: This appeal at the instance of the assessee is directed against the order of Commissioner of Income-tax (Appeals) [learned CIT (A)] dated 28.04.2023, which is arising out of the assessment order under Section 143(3) of the Income-tax Act, 1961 (the Act) dated 14th March, 2022. 2. When the case was called for, none appeared on behalf of the assessee. We observe that on the previous occasions when the case was fixed for hearing on 29th July, 2024, and 30th July, 2024, none appeared. However, considering the smallness of the issue and that the facts were available on record, it was decided to adjudicate these appeals with assistance of learned Departmental Representative. Assessee has raised following grounds of appeal: - “1. The order passed by learned CIT(A)-3, Patna is unjust, unwarranted and bad in law. Page | 2 ITA No. 222/Pat./2023 AV Ispat Private Limited; A.Y. 2014-15 2. The Id CIT(A)-3, Patna failed to appreciate and/or overlooked and/or did not consider the submissions made by the appellant as also other facts of the case. 3. That the learned CIT(A)-3, Patna erred in confirming the invocation of the provisions of section 147 of the act for disturbing the settled position. 4. On the facts and in the circumstances of the case, the ld CIT(A)-3, Patna erred in confirming the wrongful quantification of a sum of Rs 25,00,084/- being the amount of unsecured loan received by the appellant. 5. On the facts and in the circumstances of the case, the ld CIT(A)-3, Patna erred in treating the sum of Rs 25,00,084/- as income of the appellant. 6. On the facts and in the circumstances of the case, the ld CIT(A)-3, Patna erred in making addition of impugned amount of Rs 25,00,084/- to the income of the appellant. 7. The appellant craves leave to add, amend, rectify, modify or otherwise alter any ground of appeal.” 3. Perusal of the impugned order indicates that there is no adjudication on merits of the case. Ld. DR was fair enough in accepting that the impugned order of ld. CIT (A) is ex-parte qua assessee and there is no discussion on merits of the case and therefore, the matter may be restored to the file of the ld. CIT (A) for necessary adjudication. 4. We have heard the ld. D/R and perused the material placed before us. We notice that the assessee is a Private Limited Company and against the additions made by the ld. AO for A.Y. 2014-15 for unexplained cash credit of ₹25,00,084/- u/s 68 of the Act, assessee preferred the appeal before the ld. CIT (A) taking legal grounds challenging the validity of reassessment proceedings and also challenging the impugned additions. We on perusal of the impugned order notice that assessee failed to appear on the date of hearing and also did not filed any written submissions. Page | 3 ITA No. 222/Pat./2023 AV Ispat Private Limited; A.Y. 2014-15 5. Sub-section (6) of section 250 of the Income Tax Act, 1961 mandates the ld. CIT(A) to state the point in dispute, and thereafter record reasons in support of his conclusion. A perusal of the order of the ld. CIT(A) would indicate that it is not in consonance with mandate given in the Act. The ld. CIT(A) has not made any analysis of facts available on record, including the assessment records and has passed an ex-parte order. Therefore, the impugned order is not sustainable; it deserves to be set aside. Accordingly, in the interest of justice, we deem it fit to restore these appeals to the file of the ld. CIT(A) for afresh adjudication in accordance with law after giving sufficient opportunity to the assessee of being heard. Needless to say, the assessee shall cooperate till the disposal of the appeal. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 3rd October, 2024 at Kolkata. Sd/- S- (RAJPAL YADAV) (DR. MANISH BORAD) VICE PRESIDENT ACCOUNTANT MEMBER Kolkata, Dated 03.10.2024 *SS, Sr.Ps आदेश की प्रतततिति अग्रेतषत/Copy of the Order forwarded to : 1. अिीिार्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. संबंतित आयकर आयुक्त / Concerned Pr. CIT 4. आयकर आयुक्त ( अिीि ) / The CIT(A)- 5. तवभागीय प्रतततनति , अतिकरण अिीिीय आयकर , कोिकाता/DR,ITAT, Kolkata, 6. गार्ड फाईि / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अिीिीय अतिकरण ITAT, Kolkata "