Bellflower Finance Private Limited (Formerly : Sumit Credit Co Private Limited ), Kolkata V. ITO, Ward - 5(1), Kolkata , Kolkata

ITA 1377/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4777 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 25-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: AJAY GUPTA
• Keywords: Opportunity of being heard
• Section: 143(3); 14A

Judgement Text

ITA NO. 1377/KOL/2018 ASSESSMENT YEAR: 2011-2012 BELLFLOWER FINANCE PVT. LIM ITED (FORMERLY , SUMIT CREDIT COMPANY PVT. LIMITED) 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA D BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) AND SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A. NO. 1377/KOL/2018 ASSESSMENT YEAR: 2011-2012 BELLFLOWER FINANCE PVT. LIMITED,................... ...............................APPELLANT (FORMERLY, SUMIT CREDIT CO. PVT. LIMITED) A.C. BHUTERIA & COMPANY, 2, INDIA EXCHANGE PLACE, 2 ND FLOOR, KOLKATA-700 001 [PAN: AADCS 5448 L] -VS.- INCOME TAX OFFICER,................................ ......................................RESPONDENT WARD-5(1), KOLKATA, AAYAKAR BHAWAN, 7 TH FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 APPEARANCES BY: SHRI AJAY GUPTA, FCA, FOR THE APPELLANT SMT. RANU BISWAS, JCIT , SR. D.R., FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : FEBRUARY 12, 2019 DATE OF PRONOUNCING THE ORDER : FEBRUARY 12, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ):- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATA DAT ED 26.09.2017 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF TRADING AND INVESTMENT IN SHARES. T HE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 19.09.2011 DECLARING TOTAL INCOME OF RS.1,12,580/-. IN THE ASSESSMENT CO MPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 17.03.2014, THE TOTAL IN COME OF THE ASSESSEE ITA NO. 1377/KOL/2018 ASSESSMENT YEAR: 2011-2012 BELLFLOWER FINANCE PVT. LIM ITED (FORMERLY , SUMIT CREDIT COMPANY PVT. LIMITED) 2 WAS DETERMINED BY THE ASSESSING OFFICER AT RS.10,31 ,020/- AFTER MAKING THE FOLLOWING ADDITIONS:- (I) DISALLOWANCE UNDER SECTION 14A RS.7,07,872/ - (II) SUNDRY ASSETS WRITTEN OFF RS. 99,184/ - (III) EXPENSES DISALLOWED RS. 66,114/ - (IV) FILING FEES DISALLOWED RS. 1,882/ - (V) 10% OF TOUR AND TRAVEL EXPENSES DISALLOWED RS. 43,388/ - 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS) DISPUTING THE VARIOUS ADDITIONS MADE B Y THE ASSESSING OFFICER AND SINCE THERE WAS NO SATISFACTORY COMPLIA NCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SA ID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(APPEALS) DISMISSED T HE APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 26.09.2017 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. IN SUPPORT O F THE PRELIMINARY ISSUE RAISED IN THIS APPEAL CHALLENGING THE IMPUGNED ORDE R PASSED BY THE LD. CIT(APPEALS) EX-PARTE, THE LD. COUNSEL FOR THE ASSE SSEE HAS SUBMITTED THAT THERE WAS A CHANGE IN THE ADDRESS OF THE ASSESSEE A ND ALTHOUGH THE SAID CHANGE WAS DULY INFORMED TO THE OFFICE OF THE LD. C IT(APPEALS) VIDE LETTER DATED 12.05.2015, THE LD. CIT(APPEALS) SENT THE NOT ICES OF HEARING AT THE OLD ADDRESS. HE HAS SUBMITTED THAT THE SAID NOTICES SENT TO THE OLD ADDRESS, THEREFORE, DID NOT REACH THE ASSESSEE AND THE ASSESSEE COULD NOT COMPLY WITH THE SAME. KEEPING IN VIEW THIS SUBMISSI ON MADE BY THE LD. COUNSEL FOR THE ASSESSEE, WE ARE SATISFIED THAT THE RE WAS A SUFFICIENT CAUSE FOR THE NON-COMPLIANCE ON THE PART OF THE ASS ESSEE TO THE NOTICES ITA NO. 1377/KOL/2018 ASSESSMENT YEAR: 2011-2012 BELLFLOWER FINANCE PVT. LIM ITED (FORMERLY , SUMIT CREDIT COMPANY PVT. LIMITED) 3 ISSUED BY THE LD. CIT(APPEALS) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING FROM TIME TO TIME. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX-PARTE AND REMIT T HE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFRESH ON MERIT AFTER GIVING THE ASSESSEE PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON FEBRUARY 12, 2019. SD/- SD/- (SATBEER SINGH GODARA) (P.M. JAGTAP) JUDICIAL MEMBER VICE -PRESIDENT (KZ) KOLKATA, THE 12 TH DAY OF FEBRUARY, 2019 COPIES TO : (1) BELLFLOWER FINANCE PVT. LIMITED, (FORMERLY, SUMIT CREDIT CO. PVT. LIMITED) A.C. BHUTERIA & COMPANY, 2, INDIA EXCHANGE PLACE, 2 ND FLOOR, KOLKATA-700 001 (2) INCOME TAX OFFICER, WARD-5(1), KOLKATA, AAYAKAR BHAWAN, 7 TH FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATA , (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.