BRAMVISHMA DATA & MAILING SERVICES PVT. LTD.,AHMEDABAD V. THE ITO, WARD- 1(1)(2), AHMEDABAD

ITA 240/AHD/2024

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The case involves Bramvishma Data & Mailing Services Pvt. Ltd., which faced an assessment order under section 144 r.w.s. 147 of the Income-tax Act, 1961, for the Assessment Year 2011-12. The assessee did not file its return of income despite having contract receipts, leading to a reopening of the case under section 147. The AO treated certain amounts as unexplained cash credits and undisclosed income due to non-compliance with notices. The CIT(A) upheld these additions, leading the assessee to appeal before the Income Tax Appellate Tribunal. The Tribunal found merit in the assessee's request for a re-examination of the case with additional evidences and restored the matter to the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29626 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIGNESH DAS
• Assessee Lawyers: MAULIK KANSARA
• Keywords: Condonation of delay; Set aside; Additional evidence; Reasonable cause; Corroborative evidences; Unexplained cash credit; Principle of natural justice; FORM 26AS
• Section: 147; 148; 144; 142(1); 271(1)(c); 68

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ “सी“, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD सु\u0017ी सुिच\u0019ा का \u001aले, \u0012ा ियक सद एवं \u0017ी मकरंद वसंत महा देवकर, लेखा सद क े सम\"। ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA No.240/Ahd/2024 िनधा \u0010रण वष\u0010 /Assessment Year : 2011-12 Bramvishma Data & Mailing Services Pvt.Ltd. C/o. Divyang Shah & Co.,CAs 201, 2nd Floor, Devashish Complex Nr. Regenta Central Antarim Hotel, Off. C.G. Road Ahmedabad – 380 009 बनाम/ v/s. The ITO Ward-1(1)(2) Ahmedabad – 380 015 \u0014थायी लेखा सं./PAN: AACCB 6364 M अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee by : Shri Maulik Kansara, AR Revenue by : Shri Rignesh Das, Sr.DR सुनवाई की तारीख/Date of Hearing : 25 /03/2025 घोषणा की तारीख /Date of Pronouncement: 26 /03/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: This appeal filed by the assessee is directed against the order dated 24.11.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”], under section 250(6) of the Income-tax Act, 1961 [hereinafter referred to as \"the Act\"] for the Assessment Year (AY) 2011-12 arising from the order of the ITA No.240/Ahd/2024 Bramvishma Data & Mailing Services Pvt.Ltd. Asst. Year : 2011-12 2 Income Tax officer Ward 1(1)(2), Ahmedabad [hereinafter referred to as “AO”] dated 26.12.2018 passed u/s 144 r.w.s. 147 of the Act. Condonation of Delay 2. There is a delay of 19 days in filing the present appeal. The assessee filed a condonation petition along with a sworn affidavit by the Director of the assessee company, Shri Kamlesh Sureshchandra Dave, explaining the reasons for delay. It was submitted that the earlier counsel handling the matter had expired during the COVID period, and the assessee was in the process of appointing a new competent representative. The assessee ultimately appointed new Authorized Representative, who is now representing the assessee before the Tribunal. The delay was due to the time taken in identifying and appointing a suitable counsel. 3. Considering the reasons stated in the condonation petition and affidavit, and as the delay is marginal and unintentional, and the learned Departmental Representative has not objected to the condonation, we are satisfied that there was reasonable cause for the delay. Accordingly, the delay of 19 days in filing the appeal is condoned and the appeal is admitted for adjudication on merits. Facts of the Case: 4. The case of the assessee was reopened under section 147 of the Act as the assessee had not filed its return of income for the AY 2011-12 despite having received contract receipts of Rs.2,89,250/- from M/s. Cameo ITA No.240/Ahd/2024 Bramvishma Data & Mailing Services Pvt.Ltd. Asst. Year : 2011-12 3 Corporate Services Ltd., Chennai, as reflected in Form 26AS. The case was flagged under the Non-Filers Monitoring System (NMS). Notice under section 148 was issued on 21.03.2018, which was returned unserved with the remark \"Left\". Thereafter, it was served by affixture on 29.03.2018. Notices under section 142(1) of the Act were issued on 13.08.2018, 04.09.2018 and 11.09.2018, but no response was received. A show-cause notice dated 24.09.2018 was also issued, requiring compliance by 04.10.2018, but no compliance was made. 4.1. On the basis of information available from the bank statement of HDFC Bank A/c No. 00060340018321, it was observed that the assessee had credited Rs.76,08,778/- during the year under consideration. In the absence of any explanation or supporting evidence, the AO treated the said amount as unexplained cash credit under section 68. Further, the contract receipt of Rs.2,89,250/- was also treated as undisclosed income in the absence of return of income and any details submitted by the assessee. 4.2. Accordingly, the total income was assessed at Rs.78,98,030/- by an ex parte order passed under section 144 r.w.s. 147 of the Act dated 26.12.2018. Penalty proceedings under sections 271(1)(b), 271(1)(c) and 271F of the act were also initiated. 5. Aggrieved, the assessee preferred an appeal before the CIT(A). The assessee challenged the additions on the ground that the amounts represented turnover and business transactions, and that relevant financial statements such as profit & loss account and balance sheet were submitted ITA No.240/Ahd/2024 Bramvishma Data & Mailing Services Pvt.Ltd. Asst. Year : 2011-12 4 before the CIT(A). The assessee requested that it may be allowed to file ITR in support of its claim. 5.1. The CIT(A) called for a remand report from the AO. The AO reiterated that the assessee failed to file return of income despite several notices, and the additional evidences filed before the CIT(A) were not supported by books of account or details of business activity. It was also noted that at the time of reopening, the assessee company was struck off by the ROC and a petition for revival was pending before the Hon'ble NCLT. 5.2. Relying on some judicial precedents the CIT(A) held that the assessee failed to discharge the onus to explain the cash deposits and contract receipts. The additions were therefore confirmed. Grounds relating to interest and penalty were dismissed as consequential or premature. The appeal was thus dismissed. 6. Not satisfied with the order of the CIT(A), the assessee has raised the following grounds before us: 1. Whether, on the facts and in circumstances of the case and in law, the learned CIT(A) erred in confirming the addition of Rs.76,08,778/- as unexplained cash credit under section 68 of the Act? 2. Whether, on the facts and in circumstances of the case and in law, the learned CIT(A) erred in confirming the addition of Rs.2,89,250/- as undisclosed income? 3. Further, the appellant craves leave to add, amend, alter or withdraw all or any ground of appeal. 7. During the course of hearing before us, the learned Authorized Representative (AR) of the assessee sought time to place on record additional ITA No.240/Ahd/2024 Bramvishma Data & Mailing Services Pvt.Ltd. Asst. Year : 2011-12 5 evidences in support of the business activity and cash transactions. The AR reiterated that the amounts represented business turnover and not unexplained credits. However, it was observed that despite calling for a remand report, the CIT(A) did not deal with the merits of the evidence filed and summarily confirmed the additions. 7.1. We further note that the assessee company was struck off by the Registrar of Companies (ROC), and a petition for its revival was filed and was pending before the Hon'ble NCLT at the relevant time. This aspect was duly brought on record and noted in the assessment as well as appellate proceedings. In our view, this is a material factor affecting the conduct of the assessee and calls for a liberal approach in granting opportunity. 7.2. We are of the view that the assessee deserves one more opportunity to present its case before the AO. The additions made are substantial, and the principles of natural justice require that the claim of the assessee be examined on merits based on the evidences submitted. 8. The learned Departmental Representative fairly submitted that he has no objection if the matter is restored to the file of the AO. 9. In view of the above discussion, in the interest of justice, we set aside the orders of the lower authorities and restore the matter to the file of AO for de novo adjudication, after providing adequate opportunity to the assessee to present its case and submit supporting documents. The assessee is directed to co-operate in the proceedings and furnish all relevant materials as may be called for by the Assessing Officer. ITA No.240/Ahd/2024 Bramvishma Data & Mailing Services Pvt.Ltd. Asst. Year : 2011-12 6 10. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 26th March, 2025 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 26/03/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय #ितिनिध , आयकर अपीलीय अिधकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड\u0010 फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (word processed by Hon’ble AM in his laptop) : 26.3.2025 2. Date on which the typed draft is placed before the Dictating Member. : 26.3.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 26.3.25 7. Date on which the file goes to the Bench Clerk. : 26.3.25 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "