CITY SANITARY & TILES,BHUBANESWAR V. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, BHUBANESWAR

ITA 311/CTK/2025

AI Insights

The case involves City Sanitary & Tiles, the appellant, contesting against the orders of the CIT(A), Bhubaneswar-2, for the assessment years 2017-2018 & 2019-2020. The appeals were against both the quantum additions made by the Assessing Officer and the penalties levied under section 271AAC(1) of the Income Tax Act. The appellant argued that they were not given sufficient opportunity to present their case and relevant documents at the CIT(A) level. The tribunal decided to restore the quantum issues to the Assessing Officer for a fresh examination and allowed the penalty appeals, cancelling the penalties with a provision for re-assessment post the quantum appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711487 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NISHANT RAO B
• Assessee Lawyers: BISWA RANJAN PATTNAIK
• Keywords: Opportunity of being heard

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ुमार, लेखा सदस्य क े समक्ष । (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA Nos.311, 312, 323 & 324/CTK/2025 (नििाारण वर्ा / Assessment Years : 2017-2018 & 2019-2020) City Sanitary & Tiles, Plot No.2093(P), Jayadev Vihar, Bhubaneswar-751013 Vs ACIT, Central Circle-1, Bhubaneswar PAN No. :AACFC 1444 J (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Biswa Ranjan Pattnaik, CA राजस्व की ओर से /Revenue by : Shri Nishant Rao B, Sr. DR सुनवाई की तारीख / Date of Hearing : 22/07/2025 घोषणा की तारीख/Date of Pronouncement : 22/07/2025 आदेश / O R D E R Per Bench : ITA Nos.311 & 312/CTK/2025 have been filed by the assessee against separate orders in the quantum appeals passed by the ld. CIT(A), Bhubaneswar-2, both dated 21.03.2025 for assessment years 2017-2018 & 2019-2020. ITA Nos.323&324/CTK/2025 have been filed by the assessee against the separate orders passed by the ld. CIT(A), Bhubaneswar-2, both dated 27.03.2025 for the assessment years 2017-2018 & 2019-2020, thereby levying penalty u/s.271AAC(1) of the Act. 2. First we shall decide the appeals of the assessee in ITA Nos.311&312/CTK/2025 filed for A.Y.2017-2018 & 2019-2020 against the quantum additions made by the ld. Assessing Officer and confirmed by the ld. CIT(A). Printed from counselvise.com ITA Nos.311,312,323&324/CTK/2025 2 3. It was the submission of the ld.AR that while confirming the addition as made by the ld. Assessing Officer in the assessment order u/s.69C of the Act, the ld. CIT(A) has not provided the sufficient opportunity of being heard to the assessee. it was also the submission that the assessee was having all the relevant documents to prove its case and for this the assessee in its written submission had sought time to produce the same, however, ld. CIT(A) without considering the same dismissed the appeal of the assessee. It was the prayer of the ld. AR that the assessee may be provided one more opportunity so that the assessee could be able to provide all the documentary evidence to substantiate its case before the ld.AO. 4. In reply, ld. Sr. DR vehemently supported the orders of the ld. Assessing Officer and ld. CIT(A). 5. We have considered the rival submissions. A perusal of the assessment order as well as the appellate order clearly shows that the assessee has shown its inability to produce the relevant documents as asked for before either of the authorities below. It is also noticed that the assessee is trying to make its submission that some trainee accountants running their software. This is nothing but an afterthought. But so as to grant adequate opportunity to represent its case and produce the relevant documentary evidence before the Assessing Officer, the issues in both the appeals are restored to the file of ld. Assessing Officer for readjudication afresh. The assessee is also directed to cooperate with the Assessing Officer in the readjudication proceedings positively. Thus, the appeals of Printed from counselvise.com ITA Nos.311,312,323&324/CTK/2025 3 the assessee in ITA Nos.311&312/CTK/2025 are partly allowed for statistical purposes. 6. In regard to penalty appeals of the assessee filed in ITA Nos.323&324/CTK/2025, since we have already restored the issues in the quantum appeals to the file of the ld. Assessing Officer for fresh adjudication, therefore, the consequential penalty levied u/s.271AAC(1) of the Act in both the appeals are hereby cancelled with liberty to the ld. Assessing Officer to initiate fresh penalty proceedings after readjudication of the quantum proceedings afresh. Thus, the appeals of the assessee in ITA Nos.323&324/CTK/2025 are allowed. 7. In the result, ITA Nos.311&312/CTK/2025 are partly allowed for statistical purposes and ITA Nos.323&324/CTK/2025 are allowed. Order dictated and pronounced in the open court on 22/07/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 22/07/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "