BPO SOLUTIONS PRIVATE LIMITED (SUCCESSOR TO M/S. ARCEE FINVEST LIMITED),KOLKATA V. DCIT, CIRCLE 1(1), , KOLKATA

ITA 438/KOL/2025

AI Insights

The case involves BPO Solutions Private Limited, successor to M/s. Arcee Finvest Limited, appealing against the order of the Addl./JCIT(Appeals), Bhopal, which was initially dismissed ex-parte due to the appellant's non-cooperation. The appellant had filed a return declaring NIL income for the assessment year 2017-18, which was scrutinized, leading to an assessment order that also declared NIL income after adjusting brought forward losses. The Tribunal's decision to remit the case back to the Addl./JCIT(Appeals) was based on the need to uphold natural justice, despite the appellant's previous lack of cooperation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669270 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Earning of tax free income
• Section: 143(3); 142(1); 68; 14A

Judgement Text

" ITA No. 438/KOL/2025 (A.Y. 2017-2018) BPO Solutions Private Limited (successor to M/s. Arcee Finvest 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. No. 438/KOL/2025 Assessment Year: 2017-2018 BPO Solutions Private Limited,……….………Appellant (Successor to M/s. Arcee Finvest Limited) Infinity, Plot A3, Block GP, Salt Lake, North 24-Parganas, Kolkata-700091 [PAN:AAFCA4260N] -Vs.- Deputy Commissioner of Income Tax,…....Respondent Circle-1(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Akkal Dudhwewala, FCA, 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 appeal is directed at the instance of assessee against the order of ld. Addl./Joint Commissioner of Income Tax ITA No. 438/KOL/2025 (A.Y. 2017-2018) BPO Solutions Private Limited (successor to M/s. Arcee Finvest Limited) 2 (Appeals), Bhopal dated 14th January, 2025 passed for Assessment Year 2017-18. 2. Brief facts of the case are that the assessee-appellant filed its return of income for the assessment year 2017-18 on 06.11.2017 declaring NIL income after adjustment of brought forward loss of Rs.59,65,801/- and current year loss of Rs.4,32,973/-. The return was selected for complete scrutiny assessment through CASS. Notices under sections 143(2) and 142(1) were issued and duly served on the assessee-Company. In response to the notices, the assessee-company submitted copies of relevant documents through e-assessment portal. From the balance-sheet of the assessee that the assessee had non-current investments of Rs.47,14,32,607/- as on 31.03.2017 on which assessee earned exempt income in form the dividend amounting to Rs.4,44,015/-. The ld. Assessing Officer satisfied with the fact that the assessee has non-current investments, income from which does not form pat of total income and expenditure, which are attributable to earning of such exempt income and, therefore, the provision of section 14A are clearly applicable in the case of appellant- assessee. In response to notice, the assesese submitted that it earned LTCG/STCG of Rs.6,53,228/- and incurred LTCL/STCL of Rs.10,86,201/- and, therefore, net loss of Rs.4,32,973/- was disallowed in the computation of income. Therefore, the difference amount of Rs.6,53,228/- was further added back to the total income of the assessee as per provisions of section 68 of the Income Tax Act. The ld. Assessing Officer assessed income of ITA No. 438/KOL/2025 (A.Y. 2017-2018) BPO Solutions Private Limited (successor to M/s. Arcee Finvest Limited) 3 assessee at NIL under section 143(3) of the Act after adjustment of brought forward loss of Rs.1,15,39,750/-. 3. Being not satisfied, the assessee preferred appeal before the ld. CIT(Appeals). 4. The ld. Addl./JCIT(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. Addl./JCIT(Appeals). Thereafter the ld. Addl./JCIT(Appeals) dismissed the appeal ex-parte on 14th January, 2025 mentioning that the appellant-assessee is not interested in pursuing the appeal. 5. Against the order of ld. Addl./JCIT(Appeals), the assessee preferred appeal before the ITAT. 6. We have heard both the sides. 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. Addl./JCIT(Appeals) for deciding it afresh. 7. 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 income of assessee at NIL under section 143(3) of the Act after adjustment of brought forward loss of Rs.1,15,39,750/-. Thereafter the assessee preferred appeal ITA No. 438/KOL/2025 (A.Y. 2017-2018) BPO Solutions Private Limited (successor to M/s. Arcee Finvest Limited) 4 before the ld. CIT(Appeals). The ld. Addl./JCIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. Addl./JCIT(Appeals). He further submitted that before the ITAT, the assessee did not substantiate its claim for the relevant assessment year. Therefore, he pleaded to uphold the order passed by the Addl./JCIT(Appeals). 8. 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. Addl./JCIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. Addl./JCIT(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. Addl./JCIT(Appeals) failing which the Ld. Addl./JCIT(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. 9. In the result, the appeal of the assessee is 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 ITA No. 438/KOL/2025 (A.Y. 2017-2018) BPO Solutions Private Limited (successor to M/s. Arcee Finvest Limited) 5 Copies to :(1) BPO Solutions Private Limited, (Successor to M/s. Arcee Finvest Limited) Infinity, Plot A3, Block GP, Salt Lake, North 24-Parganas, Kolkata-700091 (2) Deputy Commissioner of Income Tax, Circle-1(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) Addl./JCIT(Appeals), Bhopal; (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. "