CLORET INVESTMENTS PVT. LTD.,KOLKATA V. ITO, WARD 11(2), KOLKATA

ITA 724/KOL/2024

AI Insights

The case involves Cloret Investments Pvt. Ltd., which appealed against the orders of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2012-13. The primary contention was regarding the application of Section 68 of the Income Tax Act, which pertains to the unexplained cash credits. The assessee argued that the addition made under this section was incorrect as the money was not received during the year in question; only the allotment of shares was done. The Tribunal noted that both the Assessing Officer and the CIT (A) had passed their orders ex-parte due to the non-submission of documents by the assessee, and thus, the matter needed a fresh examination.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 41068 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: PRAVEEN KISHORE
• Assessee Lawyers: VINOD JAIN
• Keywords: Opportunity of being heard
• Section: 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM ITA Nos.723& 724/KOL/2024 (Assessment Years:2012-13) Cloret Investments Pvt. Ltd. C/o Jain vinod K & Associates, 41A, A.J.C. Bose Road, Suite No.613, 6th Floor, Kolkata-700017, West Bengal Vs. ITO, Ward 11(2) Aaykar Bhavan P-7, Chowringhee Square, Kolkata-700069, West Bengal (Appellant) (Respondent) PAN No. AACCC1100G Assessee by : Shri Vinod Jain, AR Revenue by : Shri Praveen Kishore, DR Date of hearing: 11.12.2024 Date of pronouncement : 30.12.2024 O R D E R Per Rajesh Kumar, AM: These are appeals preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 07.02.2024 for the AY 2012-13. ITA NO. 723/KOL/2024 02. At the outset, the ld. Counsel for the assessee submitted that this is a second round of appeal before the Tribunal. In the first round of appeal, the Tribunal restored the issue to the file of the ld. AO to decide the issues afresh. However, by relying on the agreement dated 23.03.2012, between M/s Cloret Investment Pvt. Ltd. and Pushpak Commercial Pvt. Ltd, which was for purchase of shares of the group Page | 2 ITA Nos. 723& 724/KOL/2024 Cloret Investments Pvt. Ltd; A.Y. 2012-13 companies in the subsequent years confirmed the addition which was totally wrong and against the facts on record. 03. In the appellate proceedings, the ld. CIT (A) passed the ex-parte order dismissing the appeal in limine, when the assessee failed to furnish the necessary documents. 04. The ld. AR prayed that the appeal may be restored to the file of the ld. CIT (A) for denovo adjudication of the issue after a reasonable opportunity of hearing to the assessee. 05. After hearing the rival contentions and perusing the materials available on record, we find that the ld. CIT (A) has passed an ex- parte order confirming the assessment framed by the ld. AO, thereby upholding the addition made u/s 68 of the Act. The assessee claimed that when the money was not received during the year and it was only allotment of shares which was effected during the impugned assessment year. Therefore, section 68 of the Act is not applicable. In our opinion, the issue is required to be examined at the level of ld. CIT (A) before whom the proceedings attained finality, ex-parte. Consequently, we restore this appeal to the file of the ld. CIT (A) with a direction for denovo adjudication after offering reasonable opportunity of hearing to the assessee and the assessee is also directed to co-operate in the proceedings by fling the necessary documents as called for by the ld. CIT (A).The appeal is allowed for statistical purposes. ITA NO. 724/KOL/2024 06. The assessee has challenged the appellate order passed by ld. CIT (A) on legal issue as well as on merit. Page | 3 ITA Nos. 723& 724/KOL/2024 Cloret Investments Pvt. Ltd; A.Y. 2012-13 07. We observed from the assessment order that the same was passed by the ld. AO on the basis of records available before him, when the assessee failed to file the necessary documents before the AO and similarly, the ld. CIT (A) passed the order ex-parte when the assessee did not furnish any details/ evidences in support of its claim before the appellate authority. Now, we find that the issue requires examination at the end of the ld. CIT (A) and therefore, the appeal is restored to the file of ld. CIT (A) with a direction to decide the same denovo, after affording reasonable opportunity of being heard to the assessee. 08. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 30.12.2024. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 30.12.2024 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "