BAJRANG LAL AGARWAL,JALPAIGURI V. D.C.I.T., CC - 3(1), KOLKATA

ITA 2526/KOL/2024

AI Insights

The case involves Bajrang Lal Agarwal, who appealed against the penalty levied under section 271(1)(c) of the Income Tax Act for non-disclosure of income from fixed deposits in Bhutan, which was not taxed under Bhutan's tax laws. The original assessment included this income, but it was later set aside, and the income was added back on an accrual basis following a section 263 order. The CIT(A) dismissed the initial appeal due to non-compliance by the assessee, leading to the current appeal before the ITAT. The Tribunal's decision to restore the appeals aims to ensure a fair hearing and proper consideration of the assessee's circumstances.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315469 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Laws Referred To: Income Tax Act, 2001
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Revision of order
• Section: 143(3); 263

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय एवं Įी संजय अवèथी, लेखा सटèय क े सम¢ [Before Shri Pradip Kumar Choubey, Judicial Member &Shri Sanjay Awasthi,Accountant Member] I.T.A. Nos. 2526 to 2530/Kol/2024 Assessment Year: 2007-08 to 2011-12 Bajrang Lal Agarwal (PAN: ACRPA 8848 B) Vs. DCIT, Central Circle-3(1), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 29.04.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 15.05.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Sujit Basu, Advocate Shri Rajib Mukherjee, Advocate For the revenue / राजèव कȧ ओर से Smt. Ranu Biswas, Addl. CIT Sr. D.R ORDER / आदेश Per Pradip Kumar Choubey, JM: All the appeals preferred by the assessee against the separate orders of Commissioner of Income Tax (Appeal)-21, Kolkata (hereinafter referred to as the Ld. CIT(A)] dated 22.10.2024 for AY 2007-08 to 2011-12 respectively. Since issues are 2 I.T.A. No. 2526 to 2530/Kol/2024 Assessment Year: 2007-08 to 2011-12 Bajrang Lal Agarwal common in all the appeals hence taken up together for disposal. We shall take in ITA No. 2526/Kol/2024 as a lead case. 2. Brief facts of the case of the assessee are that the assessment of the assessee was completed u/s 153C/ 143(3) on 21.12.2015 when fixed deposit of Rs. 1,95,00,000/- in Bhutan had been duly considered by the AO. During the course of assessment, it was contended that according to Bhutan Income Tax Act, 2001 interest earned on fixed deposit by individual is not taxable income under personal income tax. Since no interest of FD is taxable, the assessee did not offer any income being interest on fixed deposit. The said assessment was set aside u/s 263 and in pursuant to the order passed u/s 263 interest on FD for Rs. 13,65,000/- had been added back on accrual basis. In penalty proceedings, it was submitted through e-mail that income accrues or arise in Section 5(1)(c ) referred to income accrues or arises not in India but outside in India. It was contended that no income has been concealed by the assessee in the return, however, the penalty proceedings u/s 271(1)( c) for Rs. 4,09,500/- has been levied. 3. Aggrieved by the said penalty order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed by the Ld. CIT(A) as there was no response on behalf of the assessee during the appellate proceedings. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 4. The Ld..R instead of arguing into the merit of the case has only prayed that as there was no concealment of income. The Ld. A.R has filed an affidavit that the assessee will co-operate if the appeal of the assessee be restored into the file of the Ld. CIT(A). 5. The D.R though supports the impugned order did not raise any objection in remitting the appeal of the assessee to the file of Ld. CIT(A). 6. Upon hearing the submission of the counsel of the respective parties, we have perused the order of Ld. CIT(A) in all the appeals and find that appeal of the assessee has been dismissed by the Ld. CIT(A) as there was non-compliance by the assessee before him The assessee has filed an affidavit which is as below: 3 I.T.A. No. 2526 to 2530/Kol/2024 Assessment Year: 2007-08 to 2011-12 Bajrang Lal Agarwal 4 I.T.A. No. 2526 to 2530/Kol/2024 Assessment Year: 2007-08 to 2011-12 Bajrang Lal Agarwal 5 I.T.A. No. 2526 to 2530/Kol/2024 Assessment Year: 2007-08 to 2011-12 Bajrang Lal Agarwal 6 I.T.A. No. 2526 to 2530/Kol/2024 Assessment Year: 2007-08 to 2011-12 Bajrang Lal Agarwal 7 I.T.A. No. 2526 to 2530/Kol/2024 Assessment Year: 2007-08 to 2011-12 Bajrang Lal Agarwal 7. It is a fact all the appeals of the assessee have been dismissed on account of non- prosecution and assessee filed an Affidavit of undertaking that the assessee will co- operate in proceeding if the appeal of the assessee be restored into file of the Ld. CIT(A). Keeping in view, the order passed by the Ld. CIT(A), considering the affidavit filed by the assessee and for the interest of justice, we are inclined to restore all the appeals of the assessee before the Ld. CIT(A) with a direction to pass afresh order with a liberty to assessee to raise an additional ground as per law. In the result, all the appeal filed by the assessee are allowed for statistical purposes. Order is pronounced in the open court on 15th May, 2025 Sd/- Sd/- (Sanjay Awasthi /संजय अवèथी) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 15th May, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Bajrang Lal Agarwal, laxmi Niwas, N. S. Road, Jaigaon, WB- 736182. 2. Respondent –DCIT, Central Circle-3(1), Kolkata 3. Ld. CIT(A)-21, Kolkata 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "