Crown Transport Private Limited , Kolkata V. ITO, Ward - 6(4), Kolkata , Kolkata

ITA 1262/KOL/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0213 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 02-12-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 08-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: SOURABH AGARWAL
• Keywords: Unexplained cash credit; Opportunity of being heard; Set aside
• Section: 142(1); 143(2); 144

Judgement Text

I.T.A. NO. 1262/KOL/2018 ASSESSMENT YEAR: 2013-2014 CROWN TRANSPORT PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT AND SHRI A.T. VARKEY, JUDICIAL MEMBER I.T.A. NO. 1262/KOL/2018 ASSESSMENT YEAR: 2013-2014 CROWN TRANSPORT PVT. LIMITED,...................... .................................APPELLANT P-44, RABINDRA SARANI, KOLKATA-700 001 [PAN:AABCC3754H] -VS.- INCOME TAX OFFICER,................................ ........................................RESPONDENT WARD-6(4), KOLKATA, AAYAKAR BHAWAN, 6 TH FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 APPEARANCES BY: SHRI SOURABH AGARWAL, A.R., FOR THE ASSESSEE SMT. RANU BISWAS, ADDL. CIT (D.R.), FOR THE REVENUE DATE OF CONCLUDING THE HEARING : DECEMBER 02, 2019 DATE OF PRONOUNCING THE ORDER : DECEMBER 31, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-7, KOLKATA DAT ED 27.03.2018 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF TRANSPORTATION. THE RETURN OF INCOM E FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 01.10.2013 DECLARI NG TOTAL INCOME OF RS.1,26,460/-. THE SAID RETURN WAS SELECTED FOR SCR UTINY AND A NOTICE UNDER SECTION 143(2) WAS ISSUED BY THE ASSESSING OF FICER TO THE ASSESSEE ON 08.09.2014. THE SAID NOTICE AS WELL AS THE NOTIC ES ISSUED SUBSEQUENTLY BY THE ASSESSING OFFICER TO THE ASSESSEE UNDER SECT ION 142(1) OF THE ACT, I.T.A. NO. 1262/KOL/2018 ASSESSMENT YEAR: 2013-2014 CROWN TRANSPORT PVT. LIMITED 2 HOWEVER, WERE REMAINED UN-COMPLIED WITH. EVEN THERE WAS NO RESPONSE FROM THE ASSESSEE TO THE SUMMONS ISSUED BY THE ASSE SSING OFFICER UNDER SECTION 131. THE ASSESSING OFFICER, THEREFORE, WAS LEFT WITH NO OPTION BUT TO COMPLETE THE ASSESSMENT EX-PARTE TO THE BEST OF HIS JUDGMENT ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. IN THE ASSES SMENT SO COMPLETED UNDER SECTION 144 OF THE ACT VIDE AN ORDER DATED 29 .03.2016, THE FOLLOWING TWO ADDITIONS WERE MADE BY THE ASSESSING OFFICER TO THE TOTAL INCOME OF THE ASSESSEE:- (I) SHARE APPLICATION MONEY TREATED AS UNEXPLAINED CASH CREDIT UNDER SECTION 68 RS. 50,95,000/ - (II) DISALLOWANCE OF EXPENSES RS.1,05,28,566/ - 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 144, AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(APPEALS) AND SINCE THERE WAS NO COMPLIANCE ON THE PART OF TH E ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HE ARING FROM TIME TO TIME, THE LD. CIT(APPEALS) DISMISSED THE APPEAL OF THE AS SESSEE FOR NON- PROSECUTION VIDE HIS APPELLATE ORDER DATED 27.03.20 18 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. BESIDES EXPL AINING THE NON- COMPLIANCE ON THE PART OF THE ASSESSEE BEFORE THE L D. CIT(APPEALS) AS NON- RECEIPT OF NOTICES STATED TO BE ISSUED BY THE LD. C IT(APPEALS), THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD WAS NOT GIVEN BY THE ASS ESSING OFFICER TO THE ASSESSEE EVEN DURING THE COURSE OF ASSESSMENT PROCE EDINGS. HE HAS SUBMITTED THAT THE ASSESSEE DURING THE RELEVANT PER IOD WAS FACING A DIFFICULT SITUATION DUE TO BADLY AFFECTED TRANSPORT ATION SECTOR AND THIS POSITION WAS BROUGHT TO THE NOTICE OF THE ASSESSING OFFICER VIDE LETTER I.T.A. NO. 1262/KOL/2018 ASSESSMENT YEAR: 2013-2014 CROWN TRANSPORT PVT. LIMITED 3 DATED 22.03.2016. HE HAS SUBMITTED THAT THE SAME, H OWEVER, WAS NOT PROPERLY APPRECIATED BY THE ASSESSING OFFICER AND H E PROCEEDED TO COMPLETE THE HIGH-PITCHED ASSESSMENT WITHOUT GIVING PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. HE HAS URGED THAT THIS MATTER MAY, THEREFORE, BE SENT BACK TO THE ASS ESSING OFFICER FOR MAKING THE ASSESSMENT AFRESH AFTER GIVING THE ASSES SEE PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD. SINCE THE LD . D.R. HAS ALSO NOT RAISED ANY OBJECTION FOR SENDING THE MATTER BACK TO THE ASSESSING OFFICER FOR PROPER CONSIDERATION, WE SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX-PARTE AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR MAKING THE ASSESSMENT AFRESH AFTER GIVING THE ASSESSEE PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD. AS UNDERTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE S HALL MAKE DUE COMPLIANCE BEFORE THE ASSESSING OFFICER AND SHALL E XTEND ALL THE POSSIBLE COOPERATION IN ORDER TO ENABLE THE ASSESSING OFFICE R TO COMPLETE THE ASSESSMENT AFRESH EXPEDITIOUSLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 31, 2019. SD/- SD/- (A.T. VARKEY) (P.M. JAGTAP) JUDICIAL MEMBER VICE-PRESIDENT) KOLKATA, THE 31 ST DAY OF DECEMBER, 2019 COPIES TO: (1) CROWN TRANSPORT PVT. LIMITED, P-44, RABINDRA SARANI, KOLKATA-700 001 (2) INCOME TAX OFFICER, WARD-6(4), KOLKATA, AAYAKAR BHAWAN, 6 TH FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-7, KOLKA TA; (4) COMMISSIONER OF INCOME TAX, KOLKATA- , KOLKATA; (5) THE DEPARTMENTAL REPRESENTATIVE I.T.A. NO. 1262/KOL/2018 ASSESSMENT YEAR: 2013-2014 CROWN TRANSPORT PVT. LIMITED 4 (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.