ITO, WARD 10(2), KOLKATA, KOLKATA V. EMS POLYSET PRIVATE LIMITED, KOLKATA

ITA 2193/KOL/2024

AI Insights

The case involves the Income Tax Department (appellant) and EMS Polyset Pvt. Ltd. (respondent) concerning the assessment years 2011-12 and 2012-13. The core issue arose from the Assessing Officer's discovery of bogus accommodation entries amounting to Rs.16,06,800, linked to the respondent, during a search operation on a known entry operator. The CIT(A) initially ruled in favor of the respondent without a remand report from the Assessing Officer, leading to the revenue's appeal. The Tribunal found the CIT(A)'s decision procedurally flawed for not seeking a remand report and thus remanded the matter back to the Assessing Officer for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717030 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2025
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 01-11-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Assessee Lawyers: ACCEPTING CERTAIN DOCUMENTS WITHOUT CALLING A REMAND
• Keywords: Condonation of delay; Opportunity of being heard; Reasonable cause; Search and seizure; Accommodation entries; Bogus
• Section: 147; 132

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘SMC’ BENCH KOLKATA Before Shri Sonjoy Sarma, Judicial Member and Shri Sanjay Awasthi, Accountant Member I.T.A. Nos.2193&2194/Kol/2024 Assessment Years: 2011-12 & 2112-13 ITO, Ward-10(2), Kolkata.…………………….…………….……....Appellant vs. EMS Polyset Pvt. Ltd………………………………………….…..... Respondent Gobinda Niwas, Jyangra, Baguihati, Kolkata - 700059. [PAN: AAACE5551F] Appearances by: Shri Susanta Saha, ACIT- Sr. DR appeared on behalf of the appellant. Shri Subrato Rai, FCA, appeared on behalf of the Respondent. Date of concluding the hearing : August 13, 2025 Date of pronouncing the order : August 18, 2025 आदेश / ORDER Per Sonjoy Sarma, Judicial Member: The captioned appeals have been preferred by the revenue against two separate orders both dated 06.08.2024 passed by the CIT(Appeals) ADDL/JCIT(A), Madurai [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’) for assessment years 2011-12 & 2012-13 respectively. Since, the issues involved in both the appeals are common and relate to the same assessee, therefore, these appeals have been heard together and are being disposed of by this consolidated order. First, we take up ITA No.2193/Kol/2024 for narration of facts. 2. At the outset, the Registry has informed that there are delays of 27 days in filing both the present appeals. The revenue filed applications for condonation of delay stating reasons for such delay. After considering the applications, we find reasonable cause. We, Printed from counselvise.com I.T.A. Nos.2193&2194/Kol/2024 EMS Polyset Pvt. Ltd 2 therefore, condone the delay in filing the appeals and adjudicate the appeals on merits of the case. 3. ITA No.2193/Kol/2024 - Brief facts of the case are that the assessee is a company and filed its return of income for the assessment year in question by declaring total income of Rs.3,22,352/-. The return was processed u/s 143(1) of the Act and subsequently, an information was received that a search and seizure operation u/s 132 of the Act was caried out in the office premises of Shri Sanjiu Kumar Singh, a well- known entry operator. It was found by the Assessing Officer that Shri Singh provided various bogus accommodation entries to various beneficiaries and the Assessing Officer also found that the assessee has also got benefit of accommodation entry of Rs.16,06,800/-. Accordingly, notice u/s 147 of the Act was issued and the Assessing Officer made certain additions in the hands of the assessee. 4. Dissatisfied with the above order, the assessee preferred an appeal before the ld. CIT(A). However, the ld. CIT(A) allowed the appeal of the assessee by accepting certain documents without calling a remand report from the Assessing Officer. 5. Aggrieved by the said order, the revenue has filed the present appeal before this Tribunal raising various grounds. However, the main contention of the ld. DR at the time of hearing is that while passing the impugned order by the ld. CIT(A) did not call remand report from the Assessing Officer relating to verification of genuineness of the transaction, therefore, the order of the ld. CIT(A) is bad in law. 6. On the other hand, the ld. AR submitted that the order passed by the ld. CIT(A) is a correct one and there is no need to interfere in the said order. Printed from counselvise.com I.T.A. Nos.2193&2194/Kol/2024 EMS Polyset Pvt. Ltd 3 7. We, after hearing both the parties and perusing the materials available on record, find that while passing the impugned order, the ld. CIT(A) did not call remand report from the Assessing Officer in order to verify the genuineness of the transaction, therefore, the order of the ld. CIT(A) is bad in law. Therefore, we feel it necessary to remand the whole issue to the file of the Assessing Officer with a direction to re-examine the issue afresh after affording reasonable opportunity of being heard to the assessee. The assessee is also directed to comply with the notices issued by the Assessing Officer without any fail. Hence, the present appeal is allowed for statistical purposes. 8. ITA No.2194/Kol/2024 – Since the facts and issues involved in the present appeal are identical, except difference in figures, therefore, our findings/directions given above in ITA No.2193/Kol/2024 will mutatis mutandis apply to the instant appeal. Therefore, ITA No.2194/Kol/2024 is allowed for statistical purposes 9. In terms of the above, both the captioned appeals of the revenue appeal are allowed for statistical purposes. Kolkata, the 18th August, 2025. Sd/- Sd/- [Sanjay Awasthi] [Sonjoy Sarma] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 18.08.2025. RS Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3.CIT (A)- 4. CIT- , 5. CIT(DR), Printed from counselvise.com I.T.A. Nos.2193&2194/Kol/2024 EMS Polyset Pvt. Ltd 4 //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "