AKANKSHA ENTERPRISES PRIVATE LIMITED,PATNA V. CIT(A), PATNA

ITA 360/PAT/2023

AI Insights

The case involves Akanksha Enterprises Private Limited appealing against the order of the Commissioner of Income Tax (Appeals), which had dismissed their appeal ex-parte regarding an addition of Rs. 12,48,000 as unexplained cash deposit during the demonetization period. The assessee argued that the delay in filing the appeal was due to not receiving the order notification, as it was sent to an incorrect email address. The ITAT found merit in the assessee's claim of being unaware of the order and thus condoned the delay in filing the appeal. The Tribunal noted the assessee's lack of representation and submission at earlier stages but decided to remit the case back to the CIT(Appeals) to ensure a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396582 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 143(3); 234B

Judgement Text

" ITA No. 360/PAT/2023 (A.Y. 2017-2018) Akanksha Enterprises Private Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-PATNA ‘e-COURT’, KOLKATA [Hybrid Court Hearing] Before Shri Duvvuru RL Reddy, Vice-President (KZ) I.T.A. No. 360/PAT/2023 Assessment Year: 2017-2018 Akanksha Enterprises Private Limited,……Appellant Chailital, Gulzarbagh, Patna-800007, Bihar [PAN:AAFCA5764K] -Vs.- Commissioner of Income Tax (Appeals),...Respondent Patna, Bihar Appearances by: Shri Amit Kamalia, C.A., appeared on behalf of the assessee Shri Ashwani Kr. Singal, JCIT, appeared on behalf of the Revenue Date of concluding the hearing: May, 08, 2025 Date of pronouncing the order: May 26, 2025 O R D E R The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 18th August, 2023 passed for Assessment Year 2017-18. 2. The appeal is time barred by 65 days in filing the appeal by the assessee. However, Director of the assessee-Company filed an ITA No. 360/PAT/2023 (A.Y. 2017-2018) Akanksha Enterprises Private Limited 2 Affidavit dated 23.01.2025 saying that the assessee was not aware of the order passed by the ld. CIT(Appeals) due to communication on the wrong e-mail ID duly mentioned in the Form 35 filed. When the assessee came to know about the order passed by the ld. CIT(Appeals) ex-parte, the assessee approached the ld. A.R. to prefer an appeal, due to that there was a delay of 65 days in filing the appeal before the Tribunal. Therefore, he pleaded to condone the delay. 3. Considering the facts and circumstances of the case, I am of the view that the assessee was prevented in filing the appeal within the stipulated time. Therefore, I am inclined to condone the delay of 65 days. Hence the delay is condoned. 4. Brief facts of the case are that the assessee filed its return of income on 31.10.2017 and processing under section 143(3) was completed on 28.12.2019. The ld. Assessing Officer made the addition of cash deposit in demonetization period Rs.12,48,000/- as unexplained under section 69A and initiated penalty proceeding under section 271AAC of the Act and charged interest under sections 234Aand 234B of the Income Tax Act, 1961. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). 5. The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate its claim, but the appellant neither filed the written submission nor represented the case before the ld. ITA No. 360/PAT/2023 (A.Y. 2017-2018) Akanksha Enterprises Private Limited 3 CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal ex-parte on 18th August, 2023. 6. On being aggrieved, the assessee preferred an appeal before the ITAT. 7. At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned order be set aside and remitted back to the file of ld. CIT(Appeals) for deciding it afresh. 8. At the outset, ld. D.R. brought to my notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer during the assessment proceedings. Therefore, the ld. Assessing Officer passed the assessment order assessing the taxable income at Rs.12,48,000/-. Thereafter the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Appeals). He further submitted that before the ITAT, the assessee did not substantiate its claim. Therefore, he pleaded to uphold the order passed by the ld. CIT(Appeals). 9. I have heard the rival contentions and perused the material available on record. Considering the facts and circumstances of the case, I am inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At ITA No. 360/PAT/2023 (A.Y. 2017-2018) Akanksha Enterprises Private Limited 4 the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes. 10. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 26/05/2025. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 26th day of May, 2025 Copies to :(1) Akanksha Enterprises Private Limited, Chailital, Gulzarbagh, Patna-800007, Bihar (2) Commissioner of Income Tax (Appeals), Patna, Bihar (3) CIT(Appeals), NFAC, Delhi; (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "