Om Shakti Metalcasts and Alloys Pvt. Ltd., Durgapur V. I.T.O.,Ward-1(2), Durgapur

ITA 179/KOL/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9676 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 11-02-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Keywords: Opportunity of being heard; Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT (KZ)] [THROUGH VIRTUAL COURT] I.T.A. NO. 179/KOL/2020 ASSESSMENT YEAR: 2014-15 OM SHAKTI METALCASTS AND ALLOYS PVT. LTD....................................................APPELLANT B-307B, KALPATARU BENGAL SHRISTI COMPLEX, HARE KRISHNA KONGAR SARANI, DURGAPUR 713 216. [PAN: AABCO 3319 G] VS ITO, WARD 1(2), DURGAPUR.....................RESPONDENT AAYAKAR BHAWAN, AAYAKAR BITHI, CITY CENTRE, DURGAPUR 713 216. APPEARANCES BY: NONE APPEARING ON BEHALF OF THE ASSESSEE. SHRI SUPRIYO PAL, ADDL. CIT APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JULY 06, 2020 DATE OF PRONOUNCING THE ORDER : JULY 06, 2020 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) DURGAPUR DATED 28.11.2019 PASSED EX-PARTE WHEREBY HE DISMISSED 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 30.11.2014 DECLARING A LOSS OF RS. 13,416/-. IN THE ASSESSMENT COMPLETED U/S 143(3) VIDE AN ORDER 29.12.2016, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE AO AT RS. 31,55,074/- AFTER MAKING AN ADDITION OF RS. 31,68,490/- U/S 56(2)(VIIB) OF THE INCOME TAX ACT, 1961. 3. AGAINST THE ORDER PASSED BY THE AO U/S 143(3) OF THE ACT, AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(A) AND SINCE 2 I.T.A. NO. 179/KOL/2020 ASSESSMENT YEAR: 2014-15 OM SHAKTI METALCASTS AND ALLOYS PVT. LTD. THERE WAS NO SATISFACTORY COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 28.11.2019 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING FIXED IN THIS CASE TODAY, NONE HAS APPEARED ON BEHALF OF THE ASSESSEE. IT IS OBSERVED THAT THE MATERIAL GRIEVANCE OF THE ASSESSEE AS PROJECTED IN GROUND NO. 3 IS THAT THE LD. CIT(A) WHILE DISMISSING THE APPEAL OF THE ASSESSEE VIDE HIS IMPUGNED ORDER PASSED EX-PARTE DID NOT CONSIDER THE MERITS OF THE CASE AND PROCEEDED TO CONFIRM THE ADDITION ARBITRARILY MADE BY THE AO ON ACCOUNT OF PREMIUM RECEIVED BY THE ASSESSEE ON ALLOTMENT OF ITS SHARES BY INVOKING SECTION 56(2)(VIIB). AS PER PROVISIONS OF SUB- SECTION (6) OF SECTION 250, THE LD. CIT(A) WAS REQUIRED TO DISPOSE OF THE APPEAL OF THE ASSESSEE VIDE AN ORDER IN WRITING STATING THE POINTS FOR DETERMINATION, THE DECISION THEREON AND THE REASONS FOR THE DECISION. IT IS OBSERVED THAT THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) DOES NOT COMPLY WITH THESE REQUIREMENTS AND THIS POSITION CLEARLY APPARENT FROM THE PERUSAL OF THE IMPUGNED ORDER OF THE LD. CIT(A) PASSED EX-PARTE IS NOT DISPUTED EVEN BY THE LD. DR. I, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX-PARTE AND REMIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFRESH ON MERIT IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE ONE MORE OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ALSO DIRECTED TO MAKE DUE COMPLIANCE BEFORE THE LD. CIT(A) AND SHALL EXTEND ALL THE POSSIBLE COOPERATION IN 3 I.T.A. NO. 179/KOL/2020 ASSESSMENT YEAR: 2014-15 OM SHAKTI METALCASTS AND ALLOYS PVT. LTD. ORDER TO ENABLE THE LD. CIT(A) TO DISPOSE OF THE APPEAL AFRESH EXPEDITIOUSLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH JULY, 2020. SD/- (P.M. JAGTAP) VICE PRESIDENT DATED: 06/07/2020 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. OM SHAKTI METALCASTS AND ALLOYS PVT. LTD., B-307B, KALPATARU, BENGAL SHRISTI COMPLEX, HARE KRISHNA KONGAR SARANI, DURGAPUR 713216. 2. ITO, WARD 1(2), DURGAPUR. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, KOLKATA