D and S Organics Private Limited, Kolkata V. I.T.O., Ward-11(2), Kolkata, Kolkata

ITA 428/KOL/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 4267 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 26-07-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Reasonable cause
• Section: 144; 250; 69A; 22

Judgement Text

आयकर अपीलीय अधिकरण कोलकाता 'एसएमसी' पीठ, कोलकाता म ें IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘SMC’ BENCH, KOLKATA डॉ मनीष बोरड, ल े खा सदस्य क े समक्ष Before DR. MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील संख्या: 428/कोल/2022 धनिा ा रण वष ा ः 2017-18 I.T.A. No.: 428/Kol/2022 Assessment Year: 2017-18 D And S Organics Private Limited............................Appellant [PAN: AADCD 4495 N] Vs. ITO, Ward-11(2), Kolkata......................................Respondent Appearances by: None appeared on behalf of the Assessee. Sh. Vijay Kumar, Addl. CIT, Sr. D/R, appeared on behalf of the Revenue. Date of concluding the hearing : September 14 th , 2022 Date of pronouncing the order : September 22 nd , 2022 आद े श ORDER Per Manish Borad, Accountant Member: This appeal filed by the assessee pertaining to the Assessment Year (in short “AY”) 2017-18 is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the “Act”) by ld. Commissioner of Income-tax (Appeals), National I.T.A. No.: 428/Kol/2022 Assessment Year: 2017-18 D And S Organics Private Limited. Page 2 of 4 Faceless Appeal Centre (NFAC), Delhi [in short ld. “CIT(A)”] dated 28.06.2022 arising out of the assessment order framed u/s 144 of the Act dated 18.12.2019. 2. The assessee is in appeal before this Tribunal raising the following grounds: “1. For that on the facts and circumstances of the case, the Ld. CIT (Appeals), NFAC was grossly unjustified in not acknowledging as well as not considering the adjournment petition dated 4th June 2022 praying for 3/4 weeks time to file written submission and arbitrarily made ex-parte appeal order without giving reasonable opportunity of being heard. 2. For that on the facts and circumstances of the case, the Ld. CIT (Appeals), NFAC has grossly erred in law in confirming the addition of Rs. 30,00,000/- vi/s 69A read with section 115BBE of the Income Tax Act whereas adequate cash balance in demonetized notes was available as per regular books of accounts maintained and duly audited by the Statutory Auditor and Tax Auditor of the appellant Company. 3. The appellant prays to be allowed to add, vary, amend the grounds of appeal at or before the date of hearing.” 3. When the case was called for, none appeared on behalf of the assessee. Perusal of the records shows that the assessee has filed a paper book containing audited financial statements of the company. In ground no. 1 raised by the assessee, the prayer has been made to restore the issues to ld. CIT(A) since the impugned order is ex-parte and reasonable opportunity of being heard was not provided. This fact is verifiable from the impugned order that it is an ex-parte order. Therefore, I decide to adjudicate the appeal with the assistance of ld. D/R who is fair enough not to oppose if the issues raised in the instant appeal are restored to ld. CIT(A). I.T.A. No.: 428/Kol/2022 Assessment Year: 2017-18 D And S Organics Private Limited. Page 3 of 4 4. I have heard ld. D/R and perused the records placed before me. I find that the assessee is a private limited company which declared income of Rs. 10,01,450/- for AY 2017-18 in the e-return filed on 30.10.2017. On account of the information for cash deposit during demonetisation period, the assessee’s case selected for scrutiny. As per the ITS data, the assessee was found to have deposited Rs. 30 lakh in the bank during demonetisation period. The assessee failed to make any submission before ld. AO. The alleged cash deposit of Rs. 30 lakh was added to the income of the assessee as unexplained cash credit u/s 69A of the Act. 5. The assessee challenged this addition made u/s 69A r.w.s. 115BBE of the Act before ld. CIT(A). Once again even after being provided the opportunity, the assessee failed to appear before ld. CIT(A) and ld. CIT(A) passed the order ex-parte qua the assessee and confirmed the addition. In the grounds and statement of facts the assessee has stated that an adjournment application was filed online before ld. CIT(A) on 04.06.2022 praying for granting time of 3 to 4 weeks to file written submissions. But this adjournment application of the assessee was not considered. 6. Under these given facts and circumstances of the case and being fair to both the parties and also keeping into consideration the COVID-19 restrictions during the period when assessee’s matter was pending before ld. CIT(A), I am of the considered view that the issue raised in the instant appeal regarding addition of Rs. 30 lakh made u/s 69A r.w.s. 115BBE of the Act needs to be restored to ld. CIT(A) for adjudication on merit. I also direct the assessee to remain vigilant and file necessary documents, if I.T.A. No.: 428/Kol/2022 Assessment Year: 2017-18 D And S Organics Private Limited. Page 4 of 4 considered, in support of its grounds of appeal and should not take adjournment, unless otherwise required for reasonable cause. In case after providing sufficient opportunity to the assessee, there is no compliance before ld. CIT(A), then ld. CIT(A) can proceed to pass the order in accordance with law. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. आद े श ददन ांक 22 दितांबर, 2022 को उद्घोदित। Kolkata, the 22 nd September, 2022. Sd/- [Manish Borad] Accountant Member Dated: 22.09.2022 Bidhan (P.S.) Copy of the order forwarded to: 1. D And S Organics Private Limited, H/1, Mrignayani Complex, 156/4A, B.T. Road, West Bengal-700 108. 2. ITO, Ward-11(2), Kolkata. 3. CIT(A)- NFAC, Delhi. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. True copy By order Assistant Registrar ITAT, Kolkata Benches Kolkata