CLASSIC GROWERS LTD.,KOLKATA V. A.C.I.T., CIRCLE - 7(1), KOLKATA

ITA 2098/KOL/2024

AI Insights

The case involves Classic Growers Limited, a public limited company engaged in investment, financing, and trading of shares, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was concerning the assessment year 2012-2013, where the assessee's income was initially declared at Rs.4,26,660 but was later reassessed to include a trading loss of Rs.41,25,540 and discrepancies in depreciation claims. The Tribunal found that the CIT(Appeals) had not adequately addressed the grounds of appeal on merit and thus remitted the case back to the Assessing Officer for a detailed examination and a speaking order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26994 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Depreciation

Judgement Text

" ITA No. 2098/KOL/2024 (A.Y. 2012-2013) Classic Growers Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) I.T.A. No. 2098/KOL/2024 Assessment Year: 2012-2013 Classic Growers Limited,…….….…..…………Appellant Room No. 68A, 2nd Floor, Karnani Estate, 209, A.J.C. Bose Road, Kolkata-700017 [PAN:AABCC3758M] -Vs.- Assistant Commissioner of Income Tax,...Respondent Circle-7(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, 5th floor, Kolkata-700069 Appearances by: Shri Vinit Jalan, C.A., appeared on behalf of the assessee Shri L.N Dash, Addl. CIT, D.R., appeared on behalf of the Revenue Date of concluding the hearing: January 22, 2025 Date of pronouncing the order: February 26, 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 20th August, 2024 passed for Assessment Year 2012-13. ITA No. 2098/KOL/2024 (A.Y. 2012-2013) Classic Growers Limited 2 2. Brief facts of the case are that the assessee is a Public Limited Company engaged in the business of investment, financing and trading of shares and registered with RBI as a Non-Banking Financial Company. The assessee filed its return of income for the assessment year 2012-13 on 17.09.2012 declaring total income at Rs.4,26,660/-. Subsequently, the case was reopened and completed on 28.12.2019 under section 143(3)/147 of the Act by the ld. Assessing Officer calculating on the tax on addition at Rs.41,25,540/- which was disallowed as trading loss. The assessee debited depreciation of Rs.3,07,74,923/- in his profit & loss account for the A.Y. 2017-18 and it was observed from the computation of income that the assessee added back only Rs.2,76,32,009/- as per Company Act. The amount of depreciation debited in the profit & loss account should be added back in computation of income of the assessee. As the assessee added back only an amount of Rs.2,76,32,009/- instead of Rs.3,07,74,923/-, the balance amount of Rs.31,42,914/- is added back in computation of income. 3. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) partly allowed the appeal of the assessee. 4. On being aggrieved, the assessee preferred an appeal before the Tribunal. 5. I have heard both the sides. It was the submission of the ld. Counsel for the assessee that the assessee had made its ITA No. 2098/KOL/2024 (A.Y. 2012-2013) Classic Growers Limited 3 submissions before the ld. Commissioner (Appeals), but the ld. CIT(Appeals) did not apply his mind and did not consider the grounds of appeal on merit. After considering the submissions of the assessee, the ld. CIT(Appeals) partly allowed the appeal of assessee without elaborate discussion of the grounds of appeal and also on merit. 6. On the other hand, it was the submission of the ld. Departmental Representative that 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 perused the material available on record. By considering the totality of the facts and circumstances of the case, I am of the view that it is a fit case to remit the matter back to the file of ld. Assessing Officer in order to meet the principle of natural justice and to examine the additional evidence filed by the assessee and pass a detailed speaking order. I also direct the ld. Counsel for the assessee to file all the relevant documents before the ld. Assessing Officer to substantiate the case of the assessee. If the assessee fails to submit any documentary evidence, then the ld. Assessing Officer will be at liberty to pass an order basing on the material available on record. Hence, the grounds of appeal raised by the assessee are allowed for statistical purposes. ITA No. 2098/KOL/2024 (A.Y. 2012-2013) Classic Growers Limited 4 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 26/02/2025. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 26th day of February, 2025 Copies to :(1) Classic Growers Limited, Room No. 68A, 2nd Floor, Karnani Estate, 209, A.J.C. Bose Road, Kolkata-700017 (2) Assistant Commissioner of Income Tax, Circle-7(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, 5th floor, Kolkata-700069 (3) Commissioner of Income Tax (Appeals), NFAC, Delhi (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. "