CLITORIS MARKETING PRIVATE LIMITED,KOLKATA V. TRO-2, KOLKATA

ITA 937/KOL/2024

AI Insights

Clitoris Marketing Private Limited appealed against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which arose from an ex parte assessment order under Section 144 of the Income Tax Act, 1961. The assessee had initially declared a 'Nil' income for the Assessment Year 2012-13, but the Assessing Officer added back share capital and securities premium amounting to \\u20b9 1,00,00,000 to the taxable income due to non-compliance with notices. The CIT(A) dismissed the appeal due to the assessee's failure to appear, leading to an ex-parte decision. The Income Tax Appellate Tribunal, after hearing the Department's representative and reviewing the case, decided to remand the matter back to the Assessing Officer for a fresh examination, emphasizing the need for a fair hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470914 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2024
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 07-10-2024
• Assessment Year: misc
• Appeal Filed On: 12-04-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 144; 142(1); 143(2); 250; 131

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH KOLKATA Shri Sonjoy Sarma, Judicial Member Shri Rakesh Mishra, Accountant Member I.T.A. No. 937/Kol/2024 Assessment Year: 2012-13 Clitoris Marketing Private Limited, 1, Lushun Sarani, 13th Floor, Room No. 1309A, Kolkata - 700073 [PAN: AAECC7737M].......................…...……………....Appellant vs. TRO-2, Kolkata...…..........................…..…..... Respondent Appearances by: Assessee represented by : None Department represented by : Sailen Samadder, Addl. CIT, Sr. DR Date of concluding the hearing : October 07, 2024 Date of pronouncing the order :October 08, 2024 ORDER Per Sonjoy Sarma, Judicial Member: This appeal filed by the assessee pertaining to the Assessment Year (in short „AY‟) 2012-13is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the „Act‟) by the Learned Commissioner of Income Tax (Appeals) (in short „the Learned. CIT(A)], National Faceless Appeal Centre (NFAC), Delhi, dated 15.09.2023 arising out of Assessment Order dated 17.03.2015, passed under Section 144of the Act. 2. The Assessee has raised the following grounds of appeal: “1. That on the facts and in the circumstances of the case, the Ld. AO erred in adding back Share Capital and Securities Premium to the tune of ₹ 1,00,00,000/- to the taxable income. I.T.A. No.937/Kol/2024 Clitoris Marketing Private Limited 2 2. That on the facts and in the circumstances of the case, the assessment order should be treated as null and void as it was not served within reasonable time. 3.. That the assessee craves leave to adduce further grounds on or before the hearing of the appeal.” 3. Brief facts of the case are that the assessee company filed its return of income for the A.Y. 2012-13 on 30.09.2012 declaring total income of ₹ „Nil‟. The case of the assessee was selected for scrutiny and followed by notice issued under Section 143(2) and 142(1) of the Act. However, the assessee failed to comply with these notices. Further, summons under Section 131 of the Act were issued to the Directors of the assessee company but they too did not respond. Consequently, the assessment was completed ex parte under Section 144 of the Act. 4. Dissatisfied with the above order, the assessee filed an appeal before the Learned CIT(A) though with a delay of 19 days. Despite notice being issued by the Learned CIT(A), the assessee did not appear to argue the case. Therefore, the Learned CIT(A) dismissed the appeal of the assessee sustaining the addition made by the Assessing Officer. 5. Aggrieved by the order of Learned CIT(A), the assessee is in appeal before this Tribunal. Despite the notice being issued form Registry regarding pendency of the appeal, the assessee failed to appear before the Tribunal leading to the matter being decided ex-parte based on material available on record and the submissions made by the Ld. DR. Upon hearing the submission of the Ld. DR and examining the facts of the case. It is noted that although the assessment order and the order of the Learned CIT(A) were passed ex parte due to non-cooperation by the assessee at the various stages of the proceedings. Considering the facts and circumstances, we find it appropriate to remand the entire matter back to the file of the Learned Assessing Officer with a direction to examining the I.T.A. No.937/Kol/2024 Clitoris Marketing Private Limited 3 issue afresh after providing assessee with a reasonable opportunity of being heard. 6. Accordingly, appeal by the assessee allowed for statistical purposes and assessment order was set aside with the above direction. In terms of the above, appeal of the assessee is allowed for statistical purposes. 7. In the result, appeal of the assessee isallowed for statistical purposes. Kolkata, the 8th October, 2024. Sd/- Sd/- [Rakesh Mishra] [Sonjoy Sarma] AccountantMember Judicial Member Dated:08.10.2024. AK, PS I.T.A. No.937/Kol/2024 Clitoris Marketing Private Limited 4 Copy of the order forwarded to: 1Clitoris Marketing Private Limited 2.TRO-2, Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches "