M/s Swabhiman Commosales P. Ltd., Kolkata V. I.T.O.Ward-2(1), Kolkata

ITA 383/KOL/2019

AI Insights

The case involves an appeal by M/s Swabhiman Commosales Pvt. Ltd. against the order of the Ld. Commissioner of Income Tax (Appeals)-1, Kolkata, which confirmed an addition of Rs. 1,46,00,000 as unexplained income under section 68 of the Income Tax Act. The primary contention was that the first appellate authority decided the appeal ex-parte without considering the merits, due to procedural anomalies in scheduling the hearing. The Tribunal noted that the order was passed three days before the scheduled hearing, preventing the assessee from presenting their case, and thus decided to restore the matter to the CIT(A) for a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127291 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 20-12-2022
• Assessment Year: 2012-2013
• Appeal Filed On: 28-02-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68

Judgement Text

आयकर अपील य अ धकरण, कोलकाता पीठ ‘‘बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA ी राजेश क ु मार, लेखा सद य एवं ी संजय शमा या यक सद य के सम [Before Shri Rajesh Kumar, Accountant Member & Shri Sonjoy Sarma, Judicial Member] I.T.A. No. 383/Kol/2019 Assessment Year: 2012-13 M/s Swabhiman Commosales Pvt. Ltd. (PAN: AAQCS 2551 M) Vs. ITO, Ward-2(1), Kolkata Appellant / (अपीलाथ ) Respondent / ( !यथ ) Date of Hearing / स ु नवाई क$ त&थ 21.12.2022 Date of Pronouncement/ आदेश उ)घोषणा क$ त&थ 02.02.2023 For the Appellant/ नधा /रती क$ ओर से Shri Miraj D Shah, A.R For the Respondent/ राज व क$ ओर से Shri P. P. Barman, Addl. CIT ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-1, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 25.08.2018 for the AY 2012-13. 2. The only issue raised by the assessee is against the confirmation of addition of Rs. 1,46,00,000/- by Ld. CIT(A) as made by the AO on account of unexplained income u/s 68 of the Act. 3. At the outset, the Ld. Counsel for the assessee submitted before the Bench that First appellate authority has decided the appeal ex-parte without considering the merits of the case. The Ld. A.R drew our attention to Para 3 page 2 of the appellate 2 I.T.A. No. 383/Kol/2019 Assessment Year: 2012-13 Swabhiman Commosales Pvt. Ltd. order wherein it is stated that the hearing of the case was first fixed on 27.07.2018 but none appeared on the appointed date. It is further stated that hearing once again fixed on 14.08.2018 and on 14.08.2018 a letter was received from the assessee requesting for adjournment. The case was accordingly adjourned to 28.08.2018. The Ld. A.R. then drew attention of the Bench to the date of order i.e. 25.08.2018 which is 3 days prior to the date fixed for the hearing. The Ld. A.R. ,therefore, submitted that it is only due to this anomaly on the part of the Ld. CIT(A), the assessee could not be represented before CIT(A) resulting into ex-parte order by the Ld. CIT(A). The Ld. A.R. therefore prayed that the case may kindly be restored to the file of the Ld. CIT(A) so that it could be decided on merit. 4. The Ld. D.R. on the other hand, left the issue on the wisdom of the Bench. 5. After hearing the rival contentions and perusing the material on record, we note that the Ld. CIT(A) has passed the order on 25.08.2018 whereas the case was adjourned to 28.08.2018 meaning thereby the order was passed three days before the appointed date and thus the assessee could not represent its case on merit before the first appellate authority . Under these facts and circumstances, we are of the view that the appeal needs to be restored to the file of the Ld. CIT(A) to be decided on merit so in accordance with principle of equity. Accordingly we restore the issue back to the file of the Ld. CIT(A) with a direction to decide the same after affording a reasonable opportunity of hearing to the assesse. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 2 nd February, 2023 Sd/- Sd/- (Sonjoy Sarma /संजय शमा ) (Rajesh Kumar/राजेश क ु मार) Judicial Member/ या यक सद य Accountant Member/लेखा सद य Dated: 2 nd February, 2023 SB, Sr. PS 3 I.T.A. No. 383/Kol/2019 Assessment Year: 2012-13 Swabhiman Commosales Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- M/s Swabhiman Commosales Pvt. Ltd., 27, Weston Street, 5 th Floor, Kolkata-700012. 2. Respondent – ITO, Ward-2(1), Kolkata 3. Ld. CIT(A)-1, Kolkata (Sent through e-mail) 4. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata