DEERGOLD COMMERCIAL PVT. LTD.,NORTH TWENTY FOUR PARGANAS V. ITO, WARD - 14(1), KOLKATA

ITA 2465/KOL/2024

AI Insights

The case involves Deergold Commercial Pvt. Limited, which appealed against the order of the CIT(Appeals) concerning the assessment year 2013-14. The primary issue arose from the assessee's failure to provide adequate documentation and evidence to substantiate the source of income reported, which included a significant sum received from a shell company. The Assessing Officer initially assessed the income based on the available information and lack of cooperation from the assessee. The CIT(Appeals) upheld this assessment after multiple opportunities were given to the assessee to present their case, which they failed to do. The ITAT, considering the circumstances and the principle of natural justice, decided to remit the case back to the CIT(Appeals) for a fresh assessment, providing the assessee another opportunity to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126685 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Competent authority; Dismissed; National Faceless Appeal; Commissioner; Commissioner of Income Tax; Statistical purposes; Department; E-mail
• Section: 147; 148; 144; 142(1); 143(2); 133(6)

Judgement Text

" ITA No. 2465/KOL/2024 (A.Y. 2013-2014) Deergold Commercial Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) I.T.A. No. 2465/KOL/2024 Assessment Year: 2013-2014 Deergold Commercial Pvt. Limited,….………Appellant Destiny Tower, Flat No. 2F, 2nd Floor, Teghoria, 23, Chinar Park, 24-Parganas(N), Kolkata-700136 [PAN:AADCD4256D] -Vs.- Income Tax Officer,……………………………...Respondent Ward-14(1), Kolkata, Aayakar Bhawan, Poorva, 110, Shanti Pally, E.M. Bye Pass, Kolkata-700107, West Bengal Appearances by: N o n e, appeared on behalf of the assessee Shri Dheeraj, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: April 22, 2025 Date of pronouncing the order: April 23, 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 October, 2024 passed for Assessment Year 2013-14. ITA No. 2465/KOL/2024 (A.Y. 2013-2014) Deergold Commercial Pvt. Limited 2 2. None appeared on behalf of the assessee at the time of hearing. Therefore, I have decided to dispose of the appeal after hearing the ld. Departmental Representative and the material available on record. 3. Brief facts of the case are that the assessee-Company filed its return of income for the assessment year 2013-14 declaring income of Rs.48,430/-. The main source of income of the assessee is from business. Later on, it was revealed after receipt of information from the Investigation Wing that the assessee is one of the beneficiaries, who received sum of Rs.10,00,000/- from a shell/paper company named M/s. Krish Deltatrade Pvt. Limited during FY 2012-13 relevant to AY 2013-14. Notices under section 133(6) of the Income Tax Act, 1961 were issued by Speed Post to the assessee after taking prior approval of the competent authority, but the notice returned back with the remarks “addressee cannot be located” but e-mail also delivered. Accordingly, recourse to the proceedings were initiated under section 147 of the Act and notice under section 148 was issued to the assessee asking to file ITR under consideration within thirty days. The assessee filed its ITR on 05.05.2021. Accordingly notices under sections 143(2) and 142(1) were issued to the assessee along with questionnaire. The assessee explained that their company has sold shares of alleged entity Krish Deltratrade Pvt. Limited amounting to Rs.5,00,000/- but not provided any details/documentary evidences in support of this receipt, i.e. when the shares were purchased and when sold. No details were provided about the broker from whom these shares ITA No. 2465/KOL/2024 (A.Y. 2013-2014) Deergold Commercial Pvt. Limited 3 were purchased/sold, whether any STT was paid or not? Getting no satisfactory response from the side of assessee, the ld. Assessing Officer completed the assessment under section 144 of the Act assessing the total income at Rs.5,48,430/-. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). 4. The ld. CIT(Appeals) has given several opportunities to the assesese to substantiate its claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal on 16th October, 2024. 5. On being aggrieved, the assessee preferred an appeal before the ITAT. 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.5,48,430/-. 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. ITA No. 2465/KOL/2024 (A.Y. 2013-2014) Deergold Commercial Pvt. Limited 4 7. I have heard the ld. Departmental Representative 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 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, I 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 23/04/2025. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 23rd day of April, 2025 Copies to :(1) Deergold Commercial Pvt. Limited, Destiny Tower, Flat No. 2F, 2nd Floor, Teghoria, 23, Chinar Park, 24-Parganas(N), Kolkata-700136 (2) Income Tax Officer, Ward-14(1), Kolkata, Aayakar Bhawan, Poorva, 110, Shanti Pally, E.M. Bye Pass, Kolkata-700107, West Bengal ITA No. 2465/KOL/2024 (A.Y. 2013-2014) Deergold Commercial Pvt. Limited 5 (3) CIT(Appeals), National Faceless Appeal Centre (NFAC), Delhi; 4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "