IMAX PROJECT INDIA LTD.,KOLKATA V. ITO, WARD 11(2), KOLKATA

ITA 425/KOL/2025

AI Insights

The case involves IMAX Projects India Limited appealing against an order from the National Faceless Appeal Centre (NFAC), which upheld the addition of Rs. 1,53,38,143 to the assessee's income as sale consideration without adjusting the purchase cost/indexed cost of purchase. The appeal was initially delayed by 393 days, for which the assessee sought condonation, claiming reasonable and sufficient cause. The Tribunal found merit in the assessee's request for another opportunity to present its case, citing insufficient opportunity given previously, and thus restored the matter to the CIT(A) with conditions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705291 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KAPIL MANDAL
• Keywords: Condonation of delay; Opportunity of being heard; Cost of acquisition; Principle of natural justice

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No.425/KOL/2025 Assessment Year: 2015-16 IMAX Projects India Limited 116, N.S.C. Bose Road, Ranikuthi-700040 West Bengal (PAN: AACCI1617C) Vs. ITO Ward 11(2) Aaykar Bhawan, P-7, chowringhee Square, Kolkata- 700069, West Bengal (Appellant) (Respondent) Present for: Appellant by : None Respondent by : Shri Kapil Mandal, DR Date of Hearing : 16.06.2025 Date of Pronouncement : 01.07.2025 O R D E R PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “the Ld. CIT(A)”) passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2015-16 dated 29.11.2023. 02. The registry has informed that the appeal is delayed by 393 days. It is observed that along with the memo of appeal, the assessee has also filed an application/affidavit seeking condonation of delay and has re- quested that the delay may be condoned. Considering the application seeking condonation of delay and the reasons stated therein, we are sat- isfied that the assessee had a reasonable and sufficient cause and was prevented from filing the instant appeal within the statutory time limit. Page | 2 ITA No. 425/KOL/2025 Imax Project India Ltd.; A.Y. 2015-16 We, therefore, condone the delay and admit the appeal for adjudication on merit. 03. The grounds of appeal raised by the assessee are reproduced as un- der: “GROUNDS OF APPEAL 1. For that in fact and under the circumstances of the case your petitioner humbly submits that he is not well conversant with the Income Tax laws and had to rely on Chartered Accountant to file the appeal and appear on behalf of the Company and for that their representative did not attend to the cases in time resulting in upholding of the order of the Ld. Assessing Officer. 2. For that in fact and under the circumstances of the case the Ld. Adjudicat- ing Officer did not give opportunity to produce the documents in support of its claim for seeking relief in appeal which is bad in law and against the cause of natural justice. 3. For that the upholding of addition made by the Ld. Assessing Officer to the tune of Rs.1,53,38,143/ being the sale consideration without adjustment of the purchase cost/indexed cost of purchase is bad in law and against the cause of natural justice. For that your petitioner craves leave for making additions, alternations, mod- ifications and/or deletion of any of the above-mentioned ground(s) of appeal and to produce such documents and case laws in support of its claim for seeking relief for which your petitioner shall be ever grateful.” 04. At the outset, it was the submission of the Ld. AR that the impugned order passed by the Ld. CIT(A) is an ex-parte order without giving suffi- cient opportunity of being heard to the assessee. It was also submitted that the assessee may be given one more opportunity to represent its case before the Ld. CIT(A), so that the assessee is able to provide the details to substantiate its case for the year under consideration before the Ld. CIT(A). In reply, Ld. Sr. DR supported the orders of the Ld. CIT(A) and the Ld. AO. It was the submission that restoring the matter to the file of CIT(A) Page | 3 ITA No. 425/KOL/2025 Imax Project India Ltd.; A.Y. 2015-16 would be, in fact, giving the assessee a second round which should not be granted. 05. A perusal of the impugned order passed by the Id. CIT(A) at para 5.1 shows that the assessee has not cooperated in the appellate proceed- ings However, Ld. AR before us requested for one more opportunity to produce the documents before the Ld. CIT(A) to file all the details as re- quired. In such circumstances, in the interest of justice, we restore the issues to the file of Ld. CIT(A) for re-adjudicating the issues afresh after granting the assessee adequate opportunity of being heard, subject to a payment of cost of Rs.50,000/- (Rupees Fifty Thousand only) by the assessee 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 and on failure of the assessee to do so, the order of the Ld. CIT(A) shall stand confirmed. The assessee is also directed to cooperate with the Ld. CIT(A) in the readjudication proceedings, positively. 06. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 1st July, 2025. Sd/- Sd/- (GEORGE MATHAN) (RAKESH MISHRA) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Dated: 1st July, 2025 Sudip sarkar, Sr. P.S. Page | 4 ITA No. 425/KOL/2025 Imax Project India Ltd.; A.Y. 2015-16 Copy to: 1. The Appellant: 2. The Respondent. 3. CIT(A), NFAC, Delhi 4. The CIT, 5. DR, ITAT, //True Copy// BY ORDER, Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata Page | 5 ITA No. 425/KOL/2025 Imax Project India Ltd.; A.Y. 2015-16 "