AJAY BATTERY INDUSTRIES,KOLKATA V. D.C.I.T., CIRCLE - 37(1), KOLKATA

ITA 2285/KOL/2024

AI Insights

This case involves Ajay Battery Industries appealing against an order from the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which treated an addition of Rs.76,06,560 as unexplained expenditure under section 250 of the Income Tax Act, 1961 for the assessment year 2019-20. The assessee did not appear before the CIT(A) or the Tribunal, and the appeal was initially dismissed due to non-responsiveness. However, the Tribunal decided to restore the matter to the CIT(A) for re-adjudication, emphasizing the principles of natural justice and providing the assessee another opportunity to present their case, subject to the payment of a cost of Rs. 25,000.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470955 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANDIP SENGUPTA
• Keywords: Unexplained expenditure; Bogus purchase; Principle of natural justice; Bogus
• Section: 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No. 2285/KOL/2024 Assessment Year: 2019-20 Ajay Battery Industries 153A, A. P. C. road, Maniktala, Kolkata-700006. (PAN: AAPFA8067L) Vs DCIT, Circle-37(1), Kolkata (Appellant) (Respondent) Present for: Appellant by : N o n e Respondent by : Shri Sandip Sengupta, Addl. CIT, Sr. DR Date of Hearing : 10.03.2025 Date of Pronouncement : 10.03.2025 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/250/2024-25/1068779905(1) dated 18.09.2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2019-20. 2. None appeared on behalf of the assessee and Shri Sandip Sengupta, Addl. CIT, Sr. DR appeared on behalf of the revenue. 3. A perusal of the order of the Ld. CIT(A) shows that the assessee has not represented its appeal before the Ld. CIT(A). In the grounds of appeal before us, the assessee has raised the following grounds of appeal: 2 ITA No.2285/Kol/2024 Ajay Battery Industries, AY: 2019-20 “1. That on the facts and in the circumstances of the case the addition of Rs.76,06,560/- being bogus purchases (treated as unexplained expenditure) is unfair, based on no evidence and based on incongruous factual premises. 2. That the assessee crave leave to add, alter and amend any ground or grounds of appeal before or at the time of hearing.” 4. It is noticed that the assessee has also been non-responsive before the Tribunal. It is also noticed that the assessee was afforded multiple opportunities before the Assessing Officer but made part responses. This being so, and so as to grant the assessee another opportunity to substantiate its case and produce evidence, the issues in this appeal are restored to the file of the Ld. CIT(A) for re-adjudication as the assessee has been non-responsive before the Ld. CIT(A) and also before the Tribunal. Therefore, in the interest of natural justice, we are of the view that the assessee should be granted one more opportunity. This being so, the issue in this appeal is restored to the file of the Ld. CIT(A) for adjudication afresh subject to the assessee paying a cost of Rs.25,000/- to the Department under challan 500 within sixty days from the date of this order and receipt of the same would be produced before the Ld. CIT(A) at the first hearing. Should the assessee not pay the abovementioned cost of Rs. 25,000/- 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: 10th March, 2025 JD, Sr. P.S. 3 ITA No.2285/Kol/2024 Ajay Battery Industries, AY: 2019-20 Copy to: 1. The Appellant: M/s. Ajay Battery Industries. 2. The Respondent. DCIT, Circle-37(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. "