ARISTODIC COMMERCIAL PVT. LTD.,KOLKATA V. ITO, WARD 1(1), , KOLKATA

ITA 679/KOL/2025

AI Insights

The case involves Aristodic Commercial Pvt. Limited, which appealed against the orders of the CIT(Appeals) concerning the assessment year 2007-08. The appeals were initially time-barred by one day due to the illness of the assessee's advocate, but the delay was condoned. The primary issue arose from the reopening of the assessee's case under section 147 of the Income Tax Act, based on information that a substantial amount had been deposited in the company's bank accounts, suspected to be undisclosed income. The Assessing Officer treated this amount as undisclosed cash credit under section 68 and added it to the assessee's income. The CIT(Appeals) dismissed the appeals ex-parte due to non-representation and non-submission of evidence by the assessee. The ITAT, after hearing the Departmental Representative and considering the circumstances, decided to remit the case back to the CIT(Appeals) to ensure the principles of natural justice were met.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669277 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Principle of natural justice; Search and seizure
• Section: 147; 148; 144; 142(1); 68; 131

Judgement Text

" ITA No. 679/KOL/2025 (A.Y. 2007-2008) & ITA No. 680/KOL/2025 (A.Y. 2007-2008) Aristodic Commercial Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Sanjay Awasthi, Accountant Member I.T.A. Nos. 679 & 680/KOL/2025 Assessment Year: 2017-2018 Aristodic Commercial Pvt. Limited,……………Appellant 50, Weston Street, Bowbazar, Kolkata-700012 [PAN:AADCA1301N] -Vs.- Income Tax Officer,……………………………....Respondent Ward-1(1), Kolkata Appearances by: N o n e (Adjourned letter filed), appeared on behalf of the assessee Shri Raja Sengupta, CIT, D.R., appeared on behalf of the Revenue Date of concluding the hearing: June 16, 2025 Date of pronouncing the order: June 24, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeals bearing ITA Nos. 679/KOL/2025 and 680/KOL/2025 are directed at the instance of assessee against the orders of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, both dated 24th January, 2025 passed for Assessment Year 2007-08. ITA No. 679/KOL/2025 (A.Y. 2007-2008) & ITA No. 680/KOL/2025 (A.Y. 2007-2008) Aristodic Commercial Pvt. Limited 2 2. Both the appeals are time barred by 1 day each in filing the appeals by the assessee. However, Shri Naresh Kumar Chhaparia, Director of the assessee-company filed an affidavit in support of condonation of delay in filing appeals within the prescribed time limit saying that the concerned Advocate of the assessee was on leave due to her son’s illness and it was not possible to file the appeals within due time and due to that there was a delay of one day each in filing the appeals before the Tribunal. Therefore, he pleaded to condone the delay. 3. Considering the facts and circumstances of the case, we are of the view that the assessee was prevented in filing the appeals within the stipulated time. Therefore, we are inclined to condone the delay of one day in filing each appeal. Hence the delay is condoned. 4. None appeared on behalf of the assessee at the time of hearing. Therefore, we have decided to dispose of the appeals after hearing the ld. Departmental Representative and perusing the material available on record. 5. Brief facts of the case are that the assessee is a Private Limited Company, which filed its return of income for the assessment year 2007-08 declaring total income of Rs.16,693/-. Later the case was reopened under section 147 on the basis of the fact that in this case, income has escaped assessment and an amount of Rs.12,83,60,300/- has been deposited in the bank ITA No. 679/KOL/2025 (A.Y. 2007-2008) & ITA No. 680/KOL/2025 (A.Y. 2007-2008) Aristodic Commercial Pvt. Limited 3 accounts of the assessee. Information was received regarding the source of this huge amount of money received by the assessee, when Shri M.M. Daga, a key person of Badalia Group, (where search and seizure operation was conducted) in his deposition under section 131 of the Act, stated that he used to take cash from the assessee-company and deposit them in Bank account and used cheque in the name of the assessee-company. Since the assessee-company is a beneficiary of this accommodation entry, it is believed that income has escaped assessment. Hence, notice under section 148 of the Act was issued on the assesese on 21.03.2014 requesting him to file return for the AY 2007-08. The assessee did not file any return against the notice issued. Again, notice under section 142(1) was issued and served upon the assesee through registered post. The assessee did not comply to the statutory notices issued to him. Without getting no compliance from the side of assessee, the ld. Assessing Officer completed the assessment under section 144 of the Income Tax Act treating the entire amount of deposit of Rs.12,83,60,300/- as undisclosed cash credit under section 68 of the Act and added back to the total income of the assessee. Finally, ld. Assessing Officer assessed income at Rs.12,83,76,993/- in both the appeals. 6. Being not satisfied, the assessee preferred appeals before the ld. CIT(Appeals). 7. The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate its claim, but the appellant neither filed ITA No. 679/KOL/2025 (A.Y. 2007-2008) & ITA No. 680/KOL/2025 (A.Y. 2007-2008) Aristodic Commercial Pvt. Limited 4 the written submission nor represented the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeals ex-parte on 24th January, 2025 mentioning that the appellant-assessee is not interested in pursuing the appeals. 8. Against the order of ld. CIT(Appeals), the assessee preferred appeals before the ITAT. 9. We have heard the ld. Departmental Representative. At the outset, ld. D.R. brought to our notice that the appellant-assessee did not produce the relevant documents as asked by the revenue authorities during the assessment as well as appellate proceedings. Therefore, the ld. Assessing Officer passed the assessment order assessing the taxable income of assessee at Rs.12,83,76,993/- in both the appeals. Thereafter the assessee preferred 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 for the relevant assessment year in both the appeals. Therefore, he pleaded to uphold the orders passed by the Revenue Authorities. 10. We have perused the material available on record. Considering the facts and circumstances of the case, we are inclined to set aside the orders passed by the ld. CIT(Appeals) in both the appeals in order to meet the principle of natural justice, ITA No. 679/KOL/2025 (A.Y. 2007-2008) & ITA No. 680/KOL/2025 (A.Y. 2007-2008) Aristodic Commercial Pvt. Limited 5 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 the same breath, we 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 in both the appeals are allowed for statistical purposes. 11. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 24/06/2025. Sd/- Sd/- (Sanjay Awasthi) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 24th day of June, 2025 Copies to :(1) Aristodic Commercial Pvt. Limited, 50, Weston Street, Bowbazar, Kolkata-700012 (2) Income Tax Officer, Wared-1(1), Kolkata (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. "