M/s. IPM Industries Ltd., , Kolkata V. DCIT, Circle - 6(1) , Kolkata

ITA 2287/KOL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8362 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 05-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RADHEY SHYAM
• Assessee Lawyers: SUJAY SEN
• Keywords: Unexplained cash credit; Opportunity of being heard; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (D), KOLKATA [BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT & SHRI S. S. VISWANETHRA RAVI, JM] I.T.A. NO. 2287/KOL/2018 ASSESSMENT YEAR: 2014-15 M/S. IPM INDUSTRIES LTD.,..........................................................APPELLANT 14/1B, WORLD TRADE CENTRE, EZRA STREET, KOLKATA 700 001. [PAN: AAACI 5523 R] DCIT, CIRCLE 6(1) KOLKATA.......................RESPONDENT KOLKATA. APPEARANCES BY: SHRI SUJAY SEN, CA APPEARING ON BEHALF OF THE ASSESSEE. SHRI RADHEY SHYAM, CIT (DR) APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : APRIL 10, 2019 DATE OF PRONOUNCING THE ORDER : APRIL 10, 2019 ORDER PER P.M. JAGTAP, VICE PRESIDENT, KZ THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 18, KOLKATA DATED 23.08.2018 PASSED EX-PARTE WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WHICH IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF PIN. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 30.11.2014 DECLARING A LOSS OF RS. 2,16,83,544/-. IN THE ASSESSMENT COMPLETED U/S 143(3)/144 OF THE ACT VIDE AN ORDER DATED 26.12.2016,THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE AO OF RS. 98,55,873 AFTER MAKING THE FOLLOWING ADDITIONS: 1. SHARE APPLICATION MONEY TREATED AS UNEXPLAINED CASH CREDIT U/S 68, RS. 2,66,09,482/- 2 M/S. IPM INDUSTRIES LTD. I.T.A. NO. 2287/KOL/2018 ASSESSMENT YEAR: 2014-15 2. AGRICULTURAL INCOME TREATED AS UNEXPLAINED CASH CREDIT U/S 68, RS. 37,95,000/- 3. DISALLOWANCE U/S 43B, RS. 7,26,976/- 4. DISALLOWANCE U/S 36(1)(VA), RS. 4,07,055/- 3. AGAINST THE ORDER PASSED BY THE AO U/S 144/143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(A) AND SINCE THERE WAS NO 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 23.08.2018 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN SUPPORT OF THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL CHALLENGING THE IMPUGNED ORDER PASSED BY THE LD. CIT(A), THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE APPEAL OF THE ASSESSEE WAS FIXED FOR HEARING BY THE LD. CIT(A) ON TWO OCCASIONS AND SINCE THE NOTICES OF THE HEARINGS SO FIXED WAS NEVER RECEIVED BY THE ASSESSEE, THE ASSESSEE COULD NOT COMPLY WITH THE SAME. KEEPING IN VIEW THIS SUBMISSION MADE BY THE LEARNED COUNSEL FOR THE ASSESSEE, WE ARE SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE NON-APPEARANCE OF THE ASSESSEE BEFORE THE LD. CIT(A) WHEN ITS APPEAL WAS FIXED FOR HEARING. WE, 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 AFTER GIVING THE ASSESSEE A PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD. AS UNDERTAKEN BY THE LEARNED 3 M/S. IPM INDUSTRIES LTD. I.T.A. NO. 2287/KOL/2018 ASSESSMENT YEAR: 2014-15 COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE DUE COMPLIANCE BEFORE THE ASSESSING OFFICER AND SHALL EXTEND ALL THE COOPERATION IN ORDER TO ENABLE THE LD. CIT(A) TO DISPOSE OF THE APPEAL OF THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH APRIL, 2019. SD/- SD/- (S. S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER VICE PRESIDENT DATED: 10/04/2019 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. M/S. IPM INDUSTRIES LTD., 14/1B, WORLD TRADE CENTRE, EZRA STREET, KOLKATA 700 001. 2. DCIT, CIRCLE 6(1), KOLKATA. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, KOLKATA