GLAMOUR MERCHANDISE LLP,KOLKATA V. I.T.O., WARD - 15(2), KOLKATA, KOLKATA

ITA 1197/KOL/2024

AI Insights

The case involves Glamour Merchandise LLP appealing against an ex parte order from the CIT(A), which confirmed an addition of Rs.1,96,41,270 as unexplained cash credit under section 68 of the Income Tax Act, 1961 for the assessment year 2011-12. The appeal also contested the reopening of the assessment. The ITAT noted that the assessee had not availed the opportunities provided by the CIT(A) and, despite this, decided to grant another opportunity for a fair hearing, emphasizing the principles of natural justice. The tribunal's decision to restore the matter to the CIT(A) was accompanied by a directive for the assessee to pay a cost to the Legal Aid Services, underscoring the seriousness of compliance with procedural norms.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470953 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHANDAN DAS
• Assessee Lawyers: RAJEEVA KUMAR
• Keywords: Set aside; Unexplained cash credit; Reopening of assessment; Principle of natural justice
• Section: 250; 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 1197/KOL/2024 Assessment Year: 2011-12 Glamour Merchandise LLP 4, Synagogue Street, 10th Floor, Room No. 1015, Baid Mansion, Kolkata-700001. (PAN: AAQFG8400L) Vs ITO, Ward-15(2), Kolkata. (Appellant) (Respondent) Present for: Appellant by : Shri Rajeeva Kumar, Advocate Respondent by : Shri Chandan Das, Addl. CIT, Sr. DR Date of Hearing : 24.03.2025 Date of Pronouncement : 24.03.2025 O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/NFAC/S/250/2023-24/1063396951(1) dated 26.03.2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2011-12. 2. Shri Rajeeva Kumar, Advocate appeared on behalf of the assessee and Shri Chandan Das, Addl. CIT, Sr. DR appeared on behalf of the revenue. 3. The Ld. AR of the assessee submitted vide first ground of appeal that the order passed by the ld. CIT(A) is an ex parte order confirming the addition of Rs.1,96,41,270/- made by the Assessing Officer treating the 2 ITA No.1197/Kol/2024 Glamour Merchandise LLP, AY: 2011-12 amount credited in the bank account of the assessee to be unexplained cash credit in terms of section 68 of the Act. Another issue in this appeal is in respect of reopening of assessment. Hence, the Ld. AR prayed before the Bench to set aside the order of the Ld. CIT(A) and restore the issue to his file for adjudication afresh. Ld. Sr. DR opposed this prayer of the assessee. 4. Since the assessee despite being provided with sufficient opportunities of hearing before the Ld. CIT(A) did not present itself in the appellate proceedings, keeping this in mind and also treating this attitude against the principles of natural justice, we are of the view, however, that in the interest of justice, the assessee should be granted one more opportunity. This being so, the issue in this appeal is restored to the file of the Ld. CIT(A) for adjudication afresh subject to the assessee paying a cost of Rs. 1,00,000/- (Rupees one lac only) to the Legal Aid Services, 3rd floor of the Centenary Building, High Court, Calcutta, 700001, within sixty days from the date of this order and receipt of the same would be produced before the Ld. CIT(A) at the first hearing. Should the assessee not pay the abovementioned costs within the prescribed period of sixty days from the date of this order, the order of the Ld. CIT(A) shall stand confirmed. 5. In the result, the appeal of the assessee is partly allowed for statistical purpose subject to above directions. Order dictated and pronounced in the open court. Sd/- Sd/- (Sanjay Awasthi) (George Mathan) Accountant Member Judicial Member Dated: 24th March, 2025 JD, Sr. P.S. 3 ITA No.1197/Kol/2024 Glamour Merchandise LLP, AY: 2011-12 Copy to: 1. The Appellant: Glamour Merchandise LLP 2. The Respondent. ITO, Ward-15(2), Kolkata 3. CIT(A), NFAC, Delhi 4. Pr. CIT 5. DR, ITAT, Kolkata Bench, Kolkata 6. Guard file. True Copy By Order Assistant Registrar ITAT, Kolkata "