EASTERN AUTO INVESTO PVT. LTD.,KOLKATA V. A.C.I.T., CIRCLE - 3(1), KOLKATA

ITA 2549/KOL/2024

AI Insights

The case involves Eastern Auto Investo Pvt. Ltd., which faced a penalty under section 271(1)(c) of the Income Tax Act, 1961, amounting to Rs. 27,81,000. The company initially did not condone the delay in filing an appeal against the penalty order, which was later discovered to be due to oversight. The ITAT had previously condoned a delay in another related appeal and remanded the quantum proceedings back to the CIT(A). Given the interconnectedness of the penalty and quantum proceedings, the ITAT decided to remand the penalty proceedings back to the CIT(A) to be considered alongside the quantum proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360819 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2013-2014
• Other Referred Cases: ITA No. 1537/Kol/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 147; 148; 144; 271(1)(c)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH”, KOLKATA SHRI PRADIP KUAMR CHOUBEY, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 2549/KOL/2024 (Assessment Year 2013-14) Eastern Auto Investo Pvt. Ltd., 67, Bentinck Street, 1st Floor, B.B.D. Bag, Kolkata - 700069 [PAN: AAACE6147K] ……..…...…………….... Appellant vs. ACIT, Circle-3(1), Kolkata, P-7, Chowringhee Square, Aayakar Bhawan, Kolkata - 700069 ........................... Respondent Appearances by: Assessee represented by : Anil Kochar, AR Department represented by : Subhro Das, Addl. CIT, Sr. DR Date of concluding the hearing : 15.05.2025 Date of pronouncing the order : 19.05.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. In this case, there is a delay of 103 days in the filing of the present appeal of which the assessee has filed a delay condonation petition as under: “I, Dinesh Bhagwanji Parikh son of Late Bhagwanji V Parikh resident of Jashan, No.9 Park Road, Northern Town, Jamshedpur, Jharkhand 831001, Director of Eastern Auto Investo Pvt. Ltd. having Its registered office at 67, Bentick Street, Kolkata-700069 do hereby state and declare as under: 1. That I am looking after the Income tax and accounts matter of the company styled M/s Eastern Auto Investo Pvt Ltd. 2. That for AY 2013-14 the JAO initiated re-assessment proceeding by issue of notice u/s 148 on 17.03.2020. The assessment was completed u/s 147 r.w.s 144 r.w.s 144B of the Income Tax Act on 23.09.2021 by making addition of Rs.30,00,000/- 3. That an appeal was preferred against the above-mentioned order on 17.05.2023. The Ld. CIT(A) vide order dated 20th June, 2024 did not condone the delay in submission of the appeal and consequently the appeal was dismissed. 2 ITA No. 2549/Kol/2024 Eastern Auto Investo Pvt. Ltd. 4. That thereafter an appeal was preferred before the ITAT and the Hon'ble Bench in ITA No. 1537/Kol/2024 condone the delay of 570 days in filing the appeal and set aside the ex-parte order passed by the Ld. CIT(A) back to the file of Ld. CIT(A) for fresh adjudication. 5. That the Ld. A.O. In the meantime had levied penalty u/s 271(1)(c) of the Act in an amount of Rs.27,81,000/-on 27.01.2022. 6. That the appeal against the said order was preferred before the CIT(A) on 17.05.2023. The Ld. CIT(A) however had not condoned the delay in submission of the appeal and consequently dismiss the same. 7. That this fact of dismissal of the appeal against the order u/s 271(1)(c) came to the knowledge of the appellant only in the month of December, 2024 as because originally when site was accessed to at that point of time it was only the order passed against the 147 order was taken care of and inadvertently the second order purported to have been passed u/s 271(1)(c) could not be taken care of. 8. That in view of the facts stated above and also the assessment already made u/s 144 having been set-aside based upon which the penalty was levied it is the prayer before your Honour that delay in filing of the appeal before the Ld. CIT(A) and also before the ITAT may kindly be condoned and appeal be admitted for adjudication of Issues involved.” 1.1 Considering the reasons given in the said petition, we hereby condone the delay and admit this appeal for adjudication. 2. This appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”), passed by Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, vide order dated 20.06.2024. Right at the outset, the Ld. AR mentioned that the matter in quantum proceedings stands remanded back to the file of Ld. CIT(A) vide ITA No. 1537/Kol/2024 order dated 30.09.2024. A copy of the said ITAT order has been placed on record and a copy was also shared with the Ld. DR. 3. We have carefully perused the order of ITAT in assessee’s own case for AY 2013-14, through which the matter has been remanded back to the file of Ld. CIT(A) for fresh adjudication. Since as of now the quantum proceedings are once again open before the Ld. CIT(A), we set aside the impugned order and remand these proceedings back to the file of Ld. CIT(A) for considering the said penalty proceedings along with quantum proceedings. 3 ITA No. 2549/Kol/2024 Eastern Auto Investo Pvt. Ltd. 4. In result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 19.05.2025 Sd/- Sd/- (Pradip Kumar Choubey) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 19.05.2025 AK, Sr. P.S. Copy of the order forwarded to: 1. Eastern Auto Investo Pvt. Ltd. 2. ACIT, Circle-3(1), Kolkata 3. CIT(A)- 4. CIT- 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "