AMRIT BREEDER FARMS PVT. LTD.,KOLKATA V. A.C.I.T., CIRCLE - 11(1), KOLKATA

ITA 2472/KOL/2024

AI Insights

Amrit Breeder Farms Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals) - NFAC, Delhi, which was passed under section 250 of the Income Tax Act, 1961, for the assessment year 2017-18. The appeal contested the additions made by the Assessing Officer regarding donations and bad debts, among other issues. The Tribunal noted that the CIT(A) had erroneously set aside the matter to the AO, which was beyond the powers post-01.06.2001. The Tribunal also observed that the assessee had not raised the issue of non-issuance of notice under section 143(2) before the lower authorities, but deemed it necessary to address it in the interest of justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312748 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Bad and doubtful debts
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अधिकरण कोलकाता 'ए' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA श्री प्रदीप क ुमार चौबे, न्याधयक सदस्य एवं श्री राक ेश धमश्रा, लेखा सदस्य क े समक्ष Before SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No.: 2472/KOL/2024 Assessment Year: 2017-18 Amrit Breeder Farms Pvt. Ltd. Vs. A.C.I.T., Circle -11(1), Kolkata (Appellant) (Respondent) PAN: AAGCA6829C Appearances: Assessee represented by : Anil Kochar Adv. Department represented by : Sanjoy Paul, Addl. CIT, Sr. DR. Date of concluding the hearing : April 16th, 2025 Date of pronouncing the order : April 29th, 2025 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2017-18 dated 06.11.2024, which has been passed against the assessment order u/s 143(3) of the Act, dated 31.12.2019. Page | 2 I.T.A. No.: 2472/KOL/2024 Assessment Year: 2017-18 Amrit Breeder Farms Pvt. Ltd. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: “1. For that the orders passed by the lower authorities are arbitrary, erroneous, without proper reasons, invalid and bad-in-law, to the extent to which they are prejudicial to the interests of the appellant. 2. For that the Ld. CIT (A) erred in not properly appreciating the facts of the case and to dwell upon the Written Submission made in respect of all the Grounds taken. 3. For that in the facts and circumstances of the case, the Ld. CIT (A) erred in confirming the addition made by the A.O. in respect of Donation amounting to Rs.2,04,565/- on alleged grounds. 4. For that the Ld. CIT (A) ought not to have confirmed the addition made by the A.O. in respect of claim towards Bad Debts amounting to Rs.8,60,454/- on alleged grounds. 5. For that the claim in respect of Bad Debts was allowable u/s 36(1)(vii) of the Income Tax Act, 1961 and the Ld. CIT (A) ought not to have confirmed the disallowances. 6. For that the Ld. CIT (A) erred in setting aside the ground relating to adhoc disallowance of Rs.50,47,818/- made by the A.O. @ 10% out of the total revenue expenses amounting to Rs.5,04,78,178/- on alleged grounds to the A.O. 7. For that the Ld. CIT (A) ought not to have set aside the issue relating to adhoc disallowance of Rs.50,47,818/- to the A.O. as there was no provision for setting aside any issue raised by the appellant in appeal before the Ld. CIT(A) who ought to have adjudicated the ground raised by the appellant. 8. For that the appellant craves leave to amend, alter, modify, substitute, add to, abridge and/or rescind any or all of the above grounds.” 3. The assessee alleges that no notice u/s 143(2) of the Act was issued. The Ld. CIT(A) set aside the matter to the Assessing Officer (hereinafter referred to as ld. 'AO'), though after 01.06.2001 no such powers are available to the Ld. CIT(A) and the setting aside is illegal. The Ld. DR relied upon the order of the Ld. CIT(A). Page | 3 I.T.A. No.: 2472/KOL/2024 Assessment Year: 2017-18 Amrit Breeder Farms Pvt. Ltd. 4. We have considered the submissions made. Since the Ld. CIT(A), though not having the requisite power to set aside the case after 01.06.2001, has done so, however, since the assessee challenges that no notice u/s 143(2) of the Act was issued, though no such contentions were raised before the Ld. AO nor even before the Ld. CIT(A), therefore, it is considered imperative on the facts of the case and in the interest of justice and fair play that the order of the Ld. CIT(A) is set aside and the assessment order of the Ld. AO is remanded to him to be done de novo after affording an opportunity of being heard to the assessee. The assessee shall be at liberty to raise all legal issues before the Ld. AO who shall decide the issue of service of the notice u/s 143(2) of the Act and, thereafter, pass the assessment order afresh as per law. 5. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 29th April, 2025. Sd/- Sd/- [Pradip Kumar Choubey] [Rakesh Mishra] Judicial Member Accountant Member Dated: 29.04.2025 Bidhan (P.S.) Page | 4 I.T.A. No.: 2472/KOL/2024 Assessment Year: 2017-18 Amrit Breeder Farms Pvt. Ltd. Copy of the order forwarded to: 1. Amrit Breeder Farms Pvt. Ltd., C/o. S.L. Kochar, 86, Canning Street, Kolkata, West Bengal, 700020. 2. A.C.I.T., Circle -11(1), Kolkata. 3. CIT(A)-NFAC, Delhi. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "