M/s. Vishesh Plastics Pvt. Ltd., Kolkata V. ITO, Ward-7(2), Kolkata, Kolkata

ITA 1093/KOL/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6383 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 17-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G H SEEMA
• Keywords: Unexplained cash credit; Opportunity of being heard
• Section: 142(1); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (D), KOLKATA [BEFORE SHRI P.M. JAGTAP, AM & SHRI A.T. VARKEY, JM] I.T.A. NO. 1093/KOL/2017 ASSESSMENT YEAR: 2011-12 M/S. VISHESH PLASTICS PVT. LTD...............................................APPELLANT C/O SARAF & CO., 1, R.N. MUKHERJEE RAOD, MARTIN BURN BUILDING, 3 RD FLOOR, ROOM NO. 323, KOLKATA 700 001. [PAN: AAACV 9080 G] ITO, WARD 7(2), KOLKATA.......................RESPONDENT P-7, CHOWRINGHEE SQUARE KOLKATA 700 069. APPEARANCES BY: SHRI SOUMITRA CHOUDHURY, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE. SHRI G.H. SEEMA, ADDL. CIT APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : MAY 31, 2018 DATE OF PRONOUNCING THE ORDER : JUNE 08, 2018 ORDER PER P.M. JAGTAP, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 5, KOLKATA DATED 20.12.2016 PASSED EX-PARTE DISMISSING THE APPEAL OF THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WHICH FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION ON 31.03.2013 DECLARING A TOTAL INCOME OF RS. 82,340/-. THE SAID RETURN WAS SELECTED BY THE AO FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) WAS ISSUED BY HIM TO THE ASSESSEE. THE SAID NOTICE ISSUED BY THE AO AS WELL AS THE SUBSEQUENT NOTICES ISSUED BY HIM UNDER SECTION 142(1) OF THE ACT HOWEVER REMAINED UNCOMPLIED WITH BY THE ASSESSEE. THE AO, THEREFORE, WAS LEFT WITH NO OPTION BUT TO COMPLETE THE ASSESSMENT TO 2 I.T.A. NO. 1093/KOL/2017 ASSESSMENT YEAR: 2011-12 M/S. VISHESH PLASTICS PVT. LTD. THE BEST OF HIS JUDGEMENT. IN THE ASSESSMENT SO COMPLETED UNDER SECTION 144 VIDE AN ORDER DATED 20.03.2014, HE ADDED THE AMOUNT OF UNSECURED LOAN OF RS. 77,98,000/- TO THE TOTAL INCOME OF THE ASSESSEE BY TREATING THE SAME AS UNEXPLAINED CASH CREDIT. AGAINST THE ORDER PASSED BY THE AO UNDER SECTION 144, AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(A) CHALLENGING THE ADDITION MADE BY THE AO ON ACCOUNT OF UNEXPLAINED CASH CREDIT. DURING THE COURSE OF APPELLATE PROCEEDINGS, THERE WAS NO COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY THE LD. CIT(A) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING FROM TIME TO TIME. THE LD. CIT(A) THEREFORE DISMISSED THE SAID APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER BY 20.12.2016 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE, THERE WAS A CHANGE IN THE ADDRESS OF THE ASSESSEE COMPANY AND THE SAME WAS DULY INFORMED TO THE OFFICE OF THE LD. CIT(A) BY A LETTER IN WRITING WHICH WAS DULY RECEIVED ON 18.03.2015. THE LD. CIT(A) HOWEVER STILL SENT ALL THE THREE NOTICES OF HEARINGS AT THE OLD ADDRESS AND SINCE THE ASSESSEE DID NOT RECEIVE THE SAME, THERE WAS NO COMPLIANCE ON THE PART OF THE ASSESSEE. AS RIGHTLY CONTENDED BY THE LEARNED COUNSEL FOR THE ASSESSEE, THERE WAS THUS A SUFFICIENT CAUSE FOR THE NON-COMPLIANCE OF THE ASSESSEE BEFORE THE LD. CIT(A) WHEN ITS APPEAL WAS FIXED FOR HEARING AND EVEN THE LEARNED DR HAS NOT DISPUTED THIS POSITION. HE HOWEVER HAS CONTENDED THAT EVEN THERE WAS NO COMPLIANCE ON THE PART OF THE 3 I.T.A. NO. 1093/KOL/2017 ASSESSMENT YEAR: 2011-12 M/S. VISHESH PLASTICS PVT. LTD. ASSESSEE TO THE NOTICES ISSUED BY THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS RESULTING IN EX-PARTE ASSESSMENT UNDER SECTION 144. HE HAS CONTENDED THAT THE MATTER MAY THEREFORE BE RESTORED TO THE FILE OF THE AO FOR GIVING HIM AN OPPORTUNITY TO EXAMINE THE CASE OF THE ASSESSEE. WE FIND MERIT IN THIS CONTENTION OF THE LEARNED DR. THE IMPUGNED ORDER OF THE LD. CIT(A) PASSED EX-PARTE IS ACCORDINGLY SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE AO FOR DECIDING THE SAME AFRESH IN ACCORDANCE WITH LAW AFTER GIVING ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. AS UNDER TAKEN BY THE LEARNED COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE DUE COMPLIANCE BEFORE THE ASSESSING OFFICER AND SHALL EXTEND ALL THE COOPERATION IN ORDER TO ENABLE THE AO TO DECIDE THE ISSUE EXPEDITIOUSLY ON MERIT. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JUNE, 2018. SD/- SD/- (A.T. VARKEY) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 08/06/2018 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. M/S. VISHESH PLASTICS PVT. LTD., C/O. SARAF & CO., 1, R.N. MUKHERJEE ROAD, MARTIN BURN BUILDING, 3 RD FLOOR, ROOM NO. 323, KOLKATA 700 001. 2. ITO, WD-7(2), P-7, CHOWRINGHEE SQUARE, KOLKATA 700 069. 4 I.T.A. NO. 1093/KOL/2017 ASSESSMENT YEAR: 2011-12 M/S. VISHESH PLASTICS PVT. LTD. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, KOLKATA