KAVERI MULTIPURPOSE ARTICLES PVT. LTD.,KOLKATA V. I.T.O., WARD - 7(3), KOLKATA

ITA 484/KOL/2025

AI Insights

The case involves Kaveri Multipurpose Articles Private Limited appealing against the order of the ld. Addl./JCIT(A)-1, Vadodara, which was passed for the Assessment Year 2013-14. The Assessing Officer had assessed the total income of the assessee at Rs.22,03,220, derived from trading and investment business, and added an estimated liability of Rs.25,45,705 due to non-genuine liability claims by the assessee. The CIT(A) dismissed the appeal, citing the absence of required documentation from the assessee. The Tribunal found that the assessee was not given sufficient opportunity to present its case and documents, leading to the decision to remand the case back to the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669272 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSANTA SAHA
• Assessee Lawyers: SIDDHARTH AGARWAL
• Keywords: Rule 8D
• Section: 14A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE SHRI DUVVURU RL REDDY, VICE PRESIDENT ITA No.484/KOL/2025 (निर्धारण वर्ा /Assessment Year : 2013-2014) Kaveri Multipurpose Articles Private Limited, C/o Subash Agarwal & Associates, Advocates , Siddha Gibson, 1, Gibson Lane, Suit 213, 2nd Floor, Kolkata-700069 Vs ITO, Ward-7(3), Kolkata PAN No. :AABCK 1468 Q (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri Siddharth Agarwal, Advocate रधजस्व की ओर से /Revenue by : Shri Susanta Saha, Sr. DR सुनवाई की तारीख / Date of Hearing : 21/05/2025 घोषणा की तारीख/Date of Pronouncement : 24/06/2025 आदेश / O R D E R The present appeal is directed at the instance of assessee against the order of ld. Addl./JCIT(A)-1, Vadodara, dated 20.01.2025 passed for Assessment Year 2013-14. 2. In this appeal, the Assessing Officer framed the assessment u/s.144 of the Act assessing total income of the assessee at Rs.22,03,220/- derived from trading and investment business. The Assessing Officer further found that the liability shown by the assessee is not genuine and accordingly estimated 10% of the total declared sundry creditors in the balance sheet of the assessee which comes to Rs.25,45,705/- and added the same to the total income of the assessee due to absence of any details and necessary compliance on the part of the assessee. The Assessing Officer also added Rs.2160/- invoking provisions of Section 14A r.w.Rule 8D. In the appellate proceedings, the assessee filed the statement of facts and raised the ITANo.484/KOL/2025 2 several grounds along with the ground that sufficient opportunity has not been provided by the Assessing Officer before passing the assessment order. The ld.CIT(A) dismissed the appeal of the assessee holding therein that the assessee was unable to submit any required documentation to substantiate its claim. Now, the assessee is in further appeal before the Tribunal. 3. Ld. Counsel for the assessee submitted that due to certain unavoidable circumstances, the assessee or the representative of the assessee could not pursue the matter during the course of assessment proceedings whereby the Assessing Officer without affording the sufficient opportunity passed the assessment and the ld. CIT(A) also thumbed to it. Ld. Counsel further submitted that if one more opportunity be given, the assessee would be able to provided all the required documents in regard to its claim before the Assessing Officer. 4. On the other hand, ld. Sr. DR vehemently supported the orders of both the authorities below and submitted that the assessee completely failed to submit the details as required for either before the Assessing Officer or before the ld. CIT(A). Thus, the ld. Sr.DR prayed for upholding the orders of the lower authorities. 5. After hearing the submission of the parties and perusing the material available on record, I find that the Assessing Officer has passed the assessment u/s.144 of the Act on account of the fact that the assessee could not make compliance to the notice issued during the course of assessment proceedings. Though the assessee has agitated that the ITANo.484/KOL/2025 3 Assessing Officer has not provided sufficient opportunity to prove its case by submitting required documents in regard to its claim, however, the ld. CIT(A) without asking any remand report or providing any opportunity to the Assessing Officer, and not examined the documents filed by the assessee but only affirmed the view taken by the Assessing Officer. In view of the above and I, therefore, feel it necessary and in the larger interest of justice and being fair to both the parties, deem it appropriate to restore the issue to the file of the ld. AO for necessary adjudication for which reasonable opportunity to be provided to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the ld. AO, failing which the ld. AO shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on record. Thus, the grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 24/06/2025. Sd/- (DUVVURU RL REDDY) उपाध्यक्ष / VICE PRESIDENT कोलकाता Kolkata; दिनाांक Dated 24/06/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. ववभागीय प्रतततनधि, आयकर अपीलीय अधिकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. ITANo.484/KOL/2025 4 आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata सत्यावपत प्रतत //True Copy// "