CHATTERJEE RESOURCE PVT. LTD.,KOLKATA V. ITO, WARD -11(1), KOLKATA

ITA 1385/KOL/2023

AI Insights

The case involves Chatterjee Resource Developers Pvt. Limited, which appealed against the order of the CIT(Appeals) at the National Faceless Appeal Centre, Delhi, concerning the assessment year 2014-15. The primary issue was the treatment of rental income received from factory shed/flat rent, which the Assessing Officer had classified as house property income due to the assessee's failure to provide satisfactory explanations and documents during the assessment proceedings. The CIT(Appeals) upheld the Assessing Officer's decision after the assessee failed to substantiate its claims or provide necessary documents during the appeals process. The ITAT, considering the principles of natural justice, decided to remit the case back to the CIT(Appeals) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26956 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 143(2)

Judgement Text

" ITA No. 1385/KOL/2023 (A.Y. 2014-2015) Chatterjee Resource Developers Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) I.T.A. No. 1385/KOL/2023 Assessment Year: 2014-2015 Chatterjee Resource Developers Pvt. Limited,……………………………………….Appellant C/o. S.N. Ghosh & Associates, Advocates, 2, Garstin Place, 2nd Floor, Suite No. 203, Off. Hare Street, Kolkata-700001 [PAN:AAECC2797F] -Vs.- Income Tax Officer,…………………………...Respondent Ward-11(1), Kolkata, Aayakar Bhawan, 6th Floor, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Somnath Ghosh, Advocate, appeared on behalf of the assessee Ms. Madhumita Das, Addl. CIT, appeared on behalf of the Revenue Date of concluding the hearing: January 09, 2025 Date of pronouncing the order: January 31, 2025 O R D E R The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 16th February, 2023 passed for Assessment Year 2014-15. ITA No. 1385/KOL/2023 (A.Y. 2014-2015) Chatterjee Resource Developers Pvt. Limited 2 2. Brief facts of the case are that the assessee is land and building developer, which filed its return of income electronically for the assessment year 2014-15 on 10th September, 2014 declaring total income of Rs.2,83,600/-. The case was selected for scrutiny through CASS and on the basis of AIR information, notice under section 143(2) of the Act dated 28.08.2015 was issued and served upon the assessee. Subsequently notice under section 142(1) of the Act was issued on 18.05.2016 and served on the assessee on 31.05.2016 calling for certain details. In response of the notice, the ld. A.R. on behalf of assessee appeared and produced the relevant details and the same were examined and test checked by the ld. Assessing Officer. Thereafter a show-cause notice was issued to the assessee on 16.09.2016 asking the assessee to explain the source of revenue of Rs.35.93.276/- received from factory shed/flat rent and also explain why the income received from rent should not be treated as house property income. Since there was no satisfactory explanation from the side of assessee, the ld. Assessing Officer treated the rental income as house property income and added the same to the total income of the assessee and assessed taxable income at Rs.25,15,290/-. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). 3. The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate his claim, but the appellant did not file the written submissions and did not represent the case before the ITA No. 1385/KOL/2023 (A.Y. 2014-2015) Chatterjee Resource Developers Pvt. Limited 3 ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal on 16th February, 2023. 4. On being aggrieved, the assessee preferred an appeal before the ITAT. 5. At the time of hearing, it was the submission of the ld. Counsel for the assessee that ld. CIT(Appeals) passed an ex-parte order by upholding the order passed by the ld. Assessing Officer. Therefore, he pleaded to delete the addition made by the ld. Assessing Officer as confirmed by the ld. CIT(Appeals). 6. At the outset, ld. D.R. brought to my notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer during the assessment proceedings. Therefore, the ld. Assessing Officer passed the assessment order assessing the taxable income at Rs.25,15,290/-. Thereafter the assessee preferred an 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. Therefore, he pleaded to uphold the orders passed by the revenue authorities. 7. I have heard the rival submissions and perused the material available on record. Considering the facts and circumstances of the case, I am inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and ITA No. 1385/KOL/2023 (A.Y. 2014-2015) Chatterjee Resource Developers Pvt. Limited 4 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 are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 31/01/2025. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 31st day of January, 2025 Copies to :(1) Chatterjee Resource Developers Pvt. Limited, C/o. S.N. Ghosh & Associates, Advocates, 2, Garstin Place, 2nd Floor, Suite No. 203, Off. Hare Street, Kolkata-700001 (2) Income Tax Officer, Ward-11(1), Kolkata, Aayakar Bhawan, 6th Floor, P-7, Chowringhee Square, Kolkata-700069 (3) Commissioner of Income Tax (Appeals); National Faceless Appeal Centre (NFAC), Delhi; ITA No. 1385/KOL/2023 (A.Y. 2014-2015) Chatterjee Resource Developers Pvt. Limited 5 (4) CIT - , Kolkata; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "