Sandip Arora, Mumbai V. I.T.O.,War-45(2), Kolkata

ITA 1881/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9461 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 09-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: LATA GOTEL ACA
• Keywords: Capital asset converted into stock in trade; Peak credit; Set aside
• Section: 143(3); 250

Judgement Text

ITA NO. 1881/KOL/2019 ASSESSMENT YEAR: 2014-2015 SANDIP ARORA 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT I.T.A. NO. 1881/KOL/2019 ASSESSMENT YEAR: 2014-2015 SANDIP ARORA,...................................... .........................................APPELLANT 582/8, MATUNGA KAMAL KUNJ, JAME JAMSHED ROAD, MATUNGA, MUMBAI-400019, MAHARASHTRA [PAN: ACNPA0672R] -VS.- INCOME TAX OFFICER,................................ ......................................RESPONDENT WARD-45(2), KOLKATA, 3, GOVERNMENT PLACE (WEST), KOLKATA-700001 APPEARANCES BY: SMT. LATA GOTEL, ACA, FOR THE APPELLANT SHRI JAYANTA KHANRA, JCIT, SR. D.R., FOR THE RESPON DEN T DATE OF CONCLUDING THE HEARING : DECEMBER 16, 2019 DATE OF PRONOUNCING THE ORDER : JANUARY 08, 2020 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-13, KOLKATA DA TED 10.06.2019 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L, WHO FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION O N 01.12.2015 DECLARING TOTAL INCOME OF RS.3,38,530/-. IN THE ASS ESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 19.12.2016 , THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE ASSESSING OFFICE R AT RS.10,17,395/- AFTER MAKING AN ADDITION OF RS.6,78,865/- ON ACCOUN T OF PEAK CREDIT BALANCE. 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. ITA NO. 1881/KOL/2019 ASSESSMENT YEAR: 2014-2015 SANDIP ARORA 2 CIT(APPEALS) AND SINCE THERE WAS NO SATISFACTORY CO MPLIANCE 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(APPEALS) DIS MISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION VIDE HIS APPELLATE ORDER DATED 10.06.2019 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEA L BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, A WRITTEN SUBMISSION WAS FILED BY THE ASSESSEE THROUGH E- MAIL DURING THE COURSE OF APPELLATE PROCEEDINGS BE FORE THE LD. CIT(APPEALS), BUT THE LD. CIT(APPEALS) DISMISSED TH E APPEAL OF THE ASSESSEE WITHOUT TAKING INTO CONSIDERATION THE SAID SUBMISSION. MOREOVER, THE LD. CIT(APPEALS) AS PER THE PROVISION S OF SUB-SECTION (6) OF SECTION 250 WAS REQUIRED TO DISPOSE OF THE APPEAL O F THE ASSESSEE VIDE AN ORDER IN WRITING STATING THE POINTS FOR DETERMINATI ON, THE DECISION THEREON AND THE REASONS FOR THE DECISION. IT IS OBS ERVED THAT THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) DOES NOT COMPLY WITH THESE REQUIREMENTS. I, THEREFORE, CONSIDER IT FAIR AND PROPER AND IN THE INTEREST OF JUSTICE TO SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX-PARTE AND REMIT THE MATTER BACK T O HIM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFRESH ON MERIT IN ACCOR DANCE WITH LAW AFTER TAKING INTO CONSIDERATION THE WRITTEN SUBMISSION FI LED BY THE ASSESSEE AND AFTER GIVING ONE MORE OPPORTUNITY OF BEING HEAR D TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 08, 2 020. SD/- (P.M. JAGTAP) VICE-PR ESIDENT) KOLKATA, THE 8 TH DAY OF JANUARY, 2020 ITA NO. 1881/KOL/2019 ASSESSMENT YEAR: 2014-2015 SANDIP ARORA 3 COPIES TO : (1) SHRI SANDIP ARORA, 582/8, MATUNGA KAMAL KUNJ, JAME JAMSHED ROAD, MATUNGA, MUMBAI-400019, MAHARASHTRA (2) INCOME TAX OFFICER, WARD-45(2), KOLKATA, 3, GOVERNMENT PLACE (WEST), KOLKATA-700001 (3) COMMISSIONER OF INCOME TAX (APPEALS)-13, K OLKATA; (4) COMMISSIONER OF INCOME TAX- , KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.