AASHIRWAD EXCLUSIVE SAREE SALES PVT. LTD.,KOLKATA V. I.T.O., WARD - 9(1), KOLKATA

ITA 1840/KOL/2024

AI Insights

The case involves Aashirwad Exclusive Saree Sales Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals) - NFAC, Delhi, concerning the assessment year 2013-14. The primary issue arose from the Income Tax Officer's (ITO) addition of Rs. 50,00,000 as unexplained money under Section 69A of the Income Tax Act, 1961, following the assessee's failure to explain the source of this amount deposited in their bank account. The CIT(A) dismissed the initial appeal due to non-prosecution without discussing the merits. The Tribunal, upon review, decided to remit the case back to the CIT(A) for a comprehensive re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298585 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Other Referred Cases: Union of India vs. Ashish Agarwal
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Competent authority
• Section: 147; 148; 69A

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “A ”, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “ए ” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 1840/Kol/2024 Assessment Year: 2013-14 Aashirwad Exclusive Saree Sales Pvt. Ltd. (PAN: AAICA 7218 D) Vs. ITO, Ward- 9(1), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 15.04.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 24.04.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Siddharth Agarwal, Advocate For the revenue / राजèव कȧ ओर से Shri Gautam Patra, Addl. CIT DR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeals)- NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 19.03.2024 for AY 2013-14 . 2 I.T.A. No. 1840/Kol/2024 Assessment Year: 2013-14 Aashirwad Exclusive Saree Sales Pvt. Ltd. 2. Brief facts of the case of the assesseee are that the assessee being a company filed its return of income for AY 2013-14 declaring total income Nil. As per information available with the department for FY 2012-13 it is seen that the assessee has received Rs. 50,00,000/- in its bank account held with Karnataka Bank Limited. Notice u/s 148 of the Act was initially issued to the assessee and further in compliance to the decisions of the Hon’ble Apex Court passed in Union of India vs. Ashish Agarwal, show cause notice u/s 148(d) issued. Considering the reply of the assessee filed in reply to the show cause notice u/s 148A of the Act, the case was selected for scrutiny u/s 147 after getting approval from the competent authority. The assesseee has been asked to furnish the information with a view to examine the genuineness of taxability of transaction as it was found that the assessee was one of such beneficiaries and received total fund amounting to Rs. 50,00,000/- but despite lapse of sufficient time the assessee did not furnish any reply, amounting to Rs. 50,00,000/- found in its bank account, as a result of which, the AO added the same amount of Rs. 50,00,000/- being an unexplained money u/s 69A of the Act. 3. Aggrieved by the said order the assessee preferred an appeal before the ld. CIT(A) wherein the appeal of the assessee has been dismissed on the ground that the assessee failed to make any submission in spite of availing sufficient time and opportunity. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 4. The Ld. A.R challenges the very impugned order thereby submitting that the reopening of proceedings initiated u/s 147 of the Act was bad in law as the purported section 151 was not obtained or was not in accordance with law. The Ld. Counsel further submits that the case of the assessee before the Ld. CIT(A) was heard an ex- party as the assessee could not file any submission. The Ld. Counsel is that the assessee has challenged the order of AO on the legal ground as well as on merit of the case as the addition of Rs. 50,00,000/- made by the AO as unexplained money by wrongly invoking the provision of Section 69A of the Act read with Section 115BBE of the Act. The prayer of the Ld. A/R is that his case may be remitted back to the file of Ld. CIT(A) 3 I.T.A. No. 1840/Kol/2024 Assessment Year: 2013-14 Aashirwad Exclusive Saree Sales Pvt. Ltd. with a direction to pass afresh order after hearing the assessee on the legal ground as well as on merit. 5. Contrary to that the Ld. D.R did not raise any objection in remitting the appeal back to the file of Ld. CIT(A). 6. We have perused the order passed by the Ld. CIT(A) and find that when before the Ld. CIT(A) the assessee did not appear, the Ld. CIT(A) has dismissed the appeal of the assessee on account of non-prosecution. There is no discussion on the merit of the case in the order of Ld. CIT(A). The Ld. CIT(A) has held that from the fact of assessee’s non- response to various notices, it is clear that apparently the assessee has no any specific submission to pursue the pending appeal. He dismissed the appeal of the assessee when the assesse failed to submit any response before him. There is no discussion on the merit of the case. 7. Keeping in view the order passed by the Ld. CIT(A) and considering the submission of the Ld. A.R we are inclined to restore the appeal of the assessee before the Ld. CIT(A) to pass afresh order after hearing the assessee on the legal ground as well as on merit of the case. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 24th April, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 24th April, 2025 SM, Sr. PS 4 I.T.A. No. 1840/Kol/2024 Assessment Year: 2013-14 Aashirwad Exclusive Saree Sales Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- Aashirwad Exclusive Saree Sales Pvt. Ltd, C/o, Subash Agarwal & Associates, Advocate, Siddha Gibson, 1, Gibson Lane, Suite 213, 2nd Floor, Kolkata-700069 2. Respondent – ITO, Ward- 9(1), Kolkata 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "