AJAY KOTHARI,KOLKATA V. ITO, WARD 1(1), , KOLKATA

ITA 865/KOL/2025

AI Insights

This case involves an appeal by Ajay Kothari against the order of the Commissioner of Income Tax (Appeals), which confirmed the additions made by the Assessing Officer under sections 68 and 69C of the Income Tax Act, 1961. The additions pertained to an unsecured loan and disallowed interest expenses. The assessee argued that the reopening of the assessment was invalid and that a technical error prevented the complete set of documents from being uploaded for the CIT(A)'s review. The Tribunal found that the CIT(A) had not addressed the merits of the case and thus remanded the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706119 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard
• Section: 148; 69C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 865/Kol/2025 (Assessment Year 2016-2017) Ajay Kothari, Block-J, 23A/216A, Ramtanu Lahiri Sarani, New Alipore, Kolkata [PAN: AFYPK5274R] ……..…...…………….... Appellant vs. ITO, Ward-1(1), Kolkata, P-7, Chowringhee Square, Kolkata - 700069 ................................ Respondent Appearances by: Assessee represented by : Rajeeva Kumar, Advocate Department represented by : Bonnie Debbarma, Addl. CIT, SR. DR Date of concluding the hearing : 24.06.2025 Date of pronouncing the order : 30.06.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. This appeal arises from order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)”] u/s 250 of the Income Tax Act, 1961, vide order dated 24.02.2025. 1.1 In this case, the Ld. AO made an addition on account of unsecured loan amounting to Rs. 60,00,116/- u/s 68 of the Act and disallowed interest expenses amounting to Rs. 1,26,424/- u/s 69C of the Act. 1.2 Aggrieved with this action, the assessee approached the Ld. CIT(A), where it is seen that several opportunities given for presenting the facts of the case and any other submissions before the Ld. CIT(A), were not availed 2 ITA No. 865/Kol/2025 Ajay Kothari of. Accordingly, the Ld. CIT(A) confirmed the action of Ld.AO and dismissed the appeal of the assessee. 2. Before us, the Ld. AR vehemently argued that the reopening through issuance of notice u/s 148 of the Act was bad in law and that due to a technical error complete set of documents could not be uploaded for the perusal of Ld. CIT(A). The Ld. AR assailed the action of Ld. CIT(A) and stated that he could have decided the appeal on merit on the basis of facts recorded in the order of Ld. AO. 2.1 The Ld. DR relied on the orders of authorities below and pointed out para 4 at page 3 of the impugned order to show that the opportunities given to the assessee were not availed of by him. 3. We have carefully considered the rival submissions and have also gone through the records before us. We find that the Ld. CIT(A) has not gone into the merit of the case and thus we feel that in the interest of substantive justice, this matter deserves to be remanded back to the file of Ld. CIT(A) for fresh adjudication. To this extent, we set aside the impugned order and direct that the Ld. CIT(A) takes up the case for fresh adjudication on merits, after giving an opportunity of being heard to the assessee. 4. In result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 30.06.2025 Sd/- Sd/- (George Mathan) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 30.06.2025 AK, Sr. P.S. Copy of the order forwarded to: 1. Ajay Kothari 2. ITO, Ward-1(1), Kolkata 3. Pr. CIT 4. CIT(A) 5. CIT(DR) 3 ITA No. 865/Kol/2025 Ajay Kothari //True copy// By order Assistant Registrar, Kolkata Benches "