DOLPHIN FOOD PROCESSING PVT LTD,NEHALPUR V. INCOME TAX OFFICER WARD 14(1), KOLKATA

ITA 2413/KOL/2024

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Dolphin Food Processing Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals) - NFAC, Delhi, which had dismissed their appeal due to non-compliance. The original assessment by the Assessing Officer (AO) added an amount of Rs. 1,57,55,550 to the income of the assessee under section 68 of the Income Tax Act, 1961, due to unexplained cash deposits. The ITAT noted that the CIT(A)'s decision was made without a discussion on the merits and was thus an ex-parte order. The Tribunal decided to restore the appeal to the CIT(A) for a fresh adjudication, providing the assessee an opportunity to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315467 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 142(1); 68

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय एवं Įी संजय अवèथी, लेखा सटèय क े सम¢ [Before Shri Pradip Kumar Choubey, Judicial Member &Shri Sanjay Awasthi,Accountant Member] I.T.A. No. 2413/Kol/2024 Assessment Year: 2014-15 Dolphin Food Processing Pvt. Ltd. (PAN: AACCD 4209 R) Vs. ITO, Ward-14(1), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 30.04.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 15.05.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Rajeeva Kumar, A.R For the revenue / राजèव कȧ ओर से Amuldeep Kaur, Addl. CIT Sr. DR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeal)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 22.07.2024 for AY 2014-15. 2 I.T.A. No. 2413/Kol/2024 Assessment Year: 2014-15 Dolphin Food Processing Pvt. Ltd. 2. It appears from the report of the registry that the appeal has been filed after a delay of 69 days for this the assessee has filed condonation petition., which are as follows- “1. Background: The appellant respectfully submits that the present appeal is being filed against the order of the Commissioner of Income Tax (Appeals) [mention office] dated 22.07.2024. Due to unavoidable circumstances detailed herein, there has been a delay of 69 days in filing the appeal before this Hon'ble Tribunal. 2. Reason for Delay: The delay was caused due to miscommunication or lack of awareness as well as the appellant was unaware of the order passed by the lower authority, as it was not served correctly, the Appeal could not be filed within the prescribed time limit. 3. Merits of the Case: The appellant has a strong case on merits, and the delay in filing the appeal is neither intentional nor due to any negligence on the appellant's part. 4. Prayer for Condonation: The appellant humbly prays that the Hon'ble Tribunal may kindly condone the delay in filing the appeal and admit the same for consideration in the interest of substantial justice.” On perusal of the condonation petition, the reason for delay in filing the appeal seems to be genuine and bonafide. The Ld. D.R did not raise any objection in condoning the delay. Keeping in view, the condonation petition as well as judicial pronouncement that the case should be decided on merit not on technical issue, the delay is hereby condoned. 3. Brief facts of the case of the assessee is that the assessee filed its return of income for AY 2014-15 declaring total income of Rs. 92,900/-. The case of the assessee has been selected for scrutiny, notice u/s 143(2) has been issued notice u/s 142(1) was also issued and duly served. The AO observed that on perusal of the copy of the audited accounts, form 3CB and bank statement of the assessee company, it found that the assessee is employing company engaged in the business of agro based industry and during FY 2013-14 company has made cash deposit on different dates at United Bank of India. The details of the cash deposit has been reflected in the assessment order . The AO after considering the submission of the assessee held that the assessee failed to explain the cash deposits as a result of which an amount of Rs. 1,57,55,550/- has been added in the income of the assessee u/s 68 of the Act. 3 I.T.A. No. 2413/Kol/2024 Assessment Year: 2014-15 Dolphin Food Processing Pvt. Ltd. 4. Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed as there was no compliance on behalf of the assessee. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 5. The Ld. Counsel appeared on behalf of the assessee instead of arguing into the merit of the case has only prayed that the assessee has been given an opportunity to place its case before the Ld. CIT(A) as the order passed by the Ld. CIT(A) is an ex- parte order there is no discussion on the merit of the case. He has also filed an affidavit to this effect. 6. The Ld. DR though supports the impugned order but did not raise any objection in restoring the appeal of the assessee to the file of Ld. CIT(A). 7. Upon hearing the submission of the counsel of the respective parties, we have perused the order of Ld. CIT(A) and find that the Ld. CIT(A) has passed an order when there was non-compliance on behalf of the assessee. It has been held by the Ld. CIT(A) that the assessee does not wish to pursue the appeal hence did not find anything to interfere in the order of AO. It appears from the order that there was no discussion on the merit rather it has been passed ex -parte order without discussing the merit of the case. The prayer of the assessee is that the assessee has to give an opportunity to place its case before the Ld. CIT(A). We have also gone through the affidavit which is as follows- 4 I.T.A. No. 2413/Kol/2024 Assessment Year: 2014-15 Dolphin Food Processing Pvt. Ltd. 5 I.T.A. No. 2413/Kol/2024 Assessment Year: 2014-15 Dolphin Food Processing Pvt. Ltd. 6 I.T.A. No. 2413/Kol/2024 Assessment Year: 2014-15 Dolphin Food Processing Pvt. Ltd. Keeping in view, the order passed by the Ld. CIT(A) considering the submission made by the assessee, we are inclined to restore the appeal of the assessee to the file of Ld. CIT(A) for fresh adjudication after hearing the assessee. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 15th May, 2025 Sd/- Sd/- (Sanjay Awasthi /संजय अवèथी) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 15th May, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Dolphin Food Processing Pvt. Ltd., Nehalpur, Basirhat, North 24 Parganas-743437 2. Respondent – ITO, Ward-14(1), Kolkata 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "