Gajalaxmi Business Enterprises Pvt. Ltd., Birmitrapur V. ACIT, Rourkela Circle, Rourkela

ITA 118/CTK/2022

AI Insights

The case involves Gajalaxmi Business Enterprises Pvt Ltd., which appealed against the order of the CIT(A), NFAC, Delhi, concerning the assessment year 2015-16. The primary contention was that the assessment was completed under section 143(3) on 29.12.2017, and the AO had called for details at the last minute, blaming the assessee for non-production of all details. Additionally, an order under section 144A by the JCIT was passed without a hearing or serving the assessee a copy, which was contested as unsustainable. The CIT(A) upheld the AO's additions without considering the assessee's explanations. The Tribunal found merit in the assessee's arguments, particularly the breach of natural justice, and decided to remand the case back to the AO.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300275 (ITAT-CUTTACK)
• Duration Of Justice: 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Next Hearing Date: 13-02-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 23-06-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE AND ARUN KHODPIA, ACCOUNTANT MEMBER Gajalaxmi Business Enterprises Pvt Ld., Gandhi Road, Biramitrapur, Odisha. PAN/GIR No. (Appellant Per Bench This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi 23/1043367782(1) 2. Shri Pawan Agarwall, ld AR appeared for the assessee and Shri S.C.Mohanty, ld Sr DR appeared for the revenue. 3. It was submitted by ld AR that the assessment came to be completed u/s.143(3) on 29.12.2017. It was the submission that the Assessing Officer IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI GEORGE MATHAN, JUDICIAL AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.118/CTK/2022 Assessment Year : 2015-16 Gajalaxmi Business Enterprises Pvt Ld., Gandhi Road, Biramitrapur, Odisha. Vs. ACIT, Aayakar Bhavan, Uditnagar, Rourkela. PAN/GIR No.AADCG 0643 F (Appellant) .. ( Respondent Assessee by : Shri Pawan Agarwall,AR Revenue by : Shri S.C.Mohanty, Sr Date of Hearing : 14/0 Date of Pronouncement : 14/0 O R D E R This is an appeal filed by the assessee against the order of the ld , NFAC, Delhi dated 8.6.2022 in Appeal No. ITBA/NFAC/S/250/2022 23/1043367782(1) for the assessment year 2015-16. Shri Pawan Agarwall, ld AR appeared for the assessee and Shri S.C.Mohanty, ld Sr DR appeared for the revenue. It was submitted by ld AR that the assessment came to be completed /s.143(3) on 29.12.2017. It was the submission that the Assessing Officer Page1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER ACIT, Aayakar Bhavan, Uditnagar, Rourkela. Respondent) Pawan Agarwall,AR S.C.Mohanty, Sr DR 02/2023 /02/2023 This is an appeal filed by the assessee against the order of the ld ITBA/NFAC/S/250/2022- Shri Pawan Agarwall, ld AR appeared for the assessee and Shri It was submitted by ld AR that the assessment came to be completed /s.143(3) on 29.12.2017. It was the submission that the Assessing Officer ITA No.118/CTK/2022 Assessment Year : 2015-16 Page2 | 4 mentions that the details were given in last minute before the AO. It was the submission that it was the AO who himself had called for the details in the last minute. It was the submission that the assessee was also asked to produce the sundry creditors in the last minute and the assessee produced whomever he could. It was the submission that without considering any of the explanation of the assessee, the assessment has been completed making addition. It was the further submission that the Assessing Officer has also done assessment pursuant to order u/s.144A passed by the Joint Commissioner of Income Tax (JCIT) without giving the assessee an opportunity of being heard. It was the submission that the order passed by the JCIT u/s.144A itself is unsustainable. It was the further submission that before the ld CIT(A) though evidences and submissions had been produced but without considering any of the explanation, the ld CIT(A) has confirmed the addition as made by the Assessing Officer. It was the submission that the order of the ld CIT(A) be set aside and the issues be restored to the file of the AO so as to enable the assessee to produce all the evidences as called for to his satisfaction. 4. In reply, ld Sr DR submitted that he has no objection if the issues are restored. It was the submission that the issues should be restored to the file of the ld CIT(A), who could direct the AO for a remand report. He vehemently supported the order of the ld CIT(A). ITA No.118/CTK/2022 Assessment Year : 2015-16 Page3 | 4 5. We have considered the rival submissions. A perusal of the assessment order clearly shows that the order u/s.144A has been passed by the JCIT. Admittedly, the assessee submits that he has not been given an opportunity of being heard nor he has been served the copy of order u/s.144A. Clearly, the assessment order is passed on the direction of the JCIT passed u/s. 144A of the Act. The same having not been served on the assessee, there is clear violation of principles of natural justice. In these circumstances, as also considering the fact that the AO has called for details in the last minute and then has put the blame on the assessee for non- production of all the details, we are of the view that the issues in this appeal must be restored to the file of the AO for re-adjudication after granting the assessee opportunity to substantiate its case. The Assessing Officer shall serve the assessee copy of the order u/s.144A, if he proposes to rely on the order for making the assessment. 6. In the result, appeal of the assessee stands partly allowed for statistical purposes. Order dictated and pronounced in the open court on 14/02/2023. Sd/- sd/- (Arun Khodpia) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 14/02/2023 B.K.Parida, SPS (OS) ITA No.118/CTK/2022 Assessment Year : 2015-16 Page4 | 4 Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : Gajalaxmi Business Enterprises Pvt Ld., Gandhi Road, Biramitrapur, Odisha 2. The Respondent: ACIT, Aayakar Bhavan, Uditnagar, Rourkela 3. The CIT(A)-, NFAC, Delhi 4. Pr.CIT-, Sambalpur 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//