M/S. 45 BUS ROUTE OWNER ASSOCIATION,KOLKATA V. ITO, WARD 33(2), KOLKATA

ITA 272/KOL/2025

AI Insights

The case involves M/s. 45 Bus Route Owner Association appealing against the order of the Commissioner of Income Tax (Appeals) - NFAC, Delhi, which confirmed the addition of Rs. 77,01,650 as unexplained money under section 69A of the Income Tax Act, 1961. The initial assessment was made under sections 147 and 144B of the Act due to high-value transactions in the assessee's bank account, which were deemed unexplained. The Tribunal found that the CIT(A) had decided the appeal ex-parte without adequately addressing the grounds on merits, leading to the decision to remit the case back for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779047 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 06-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Unexplained investment
• Section: 147; 148; 144; 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA Before SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No.: 272/KOL/2025 Assessment Year: 2016-17 M/s. 45 Bus Route Owner Association Vs. ITO, Ward-33(2), Kolkata (Appellant) (Respondent) PAN: AAAAZ1946K Appearances: Assessee represented by : Abhishek Bansal, FCA. Department represented by : Altaf Hussain, Addl. CIT, Sr. DR. Date of concluding the hearing : 14-August-2025 Date of pronouncing the order : 13-October-2025 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2016-17 dated 28.12.2023, which has been passed against the assessment order u/s 147 r.w.s. 144B of the Act, dated 31.03.2022. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: “1. For that Ld. CIT (A) also erred in passing the appellate order ex-parte without providing the appellant any effective opportunity of being heard. Even otherwise, the Ld. CIT (A) erred in passing the appeal ex-parte without individually dealing with each of the grounds on merits. Printed from counselvise.com Page | 2 I.T.A. No.: 272/KOL/2025 Assessment Year: 2016-17 M/s. 45 Bus Route Owner Association. 2. For that the Ld. CIT (A) was not justified in confirming the addition of Rs. 77,01,650/- made by the A.O. on account of alleged unexplained money by invoking the provision of sec. 69A of the I. T. Act, 1961. 3. The appellant craves leave to add further grounds of appeal or alter the grounds at the time of hearing.” 3. Brief facts of the case are that the assessee did not file the return of income for the AY 2016-17 and the case was reopened u/s 147 of the Act for the reason being high value transactions made by the assessee in the form of unexplained investment to the tune of ₹77,01,650/- in the bank account. A notice u/s 148 of the Act was issued and in response thereof, the assessee filed its return of income showing total income of ₹2,200/-. A show cause notice was issued to the assessee requiring the assessee to furnish its reply along with computation of income, audited financial statement of the accounts, copy of memorandum of articles of association of the Societies in which funds were contributed. The assessee complied with the notice but the Assessing Officer (hereinafter referred to as Ld. 'AO') did not find it acceptable as the assessee could not file any documentary evidence in support of its contention; hence, the Ld. AO treated the cash amount of ₹77,01,650/- as unexplained money and added back the same to the total income of the assessee and assessed the total income of the assessee at ₹77,03,850/- u/s 143(3) r.w.s. 147 r.w.s. 144B of the Act. Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A) who vide order dated 28.12.2023 dismissed the appeal of the assessee by holding that there was no material on record to warrant interference in the order of the Ld. AO. 4. Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal. Printed from counselvise.com Page | 3 I.T.A. No.: 272/KOL/2025 Assessment Year: 2016-17 M/s. 45 Bus Route Owner Association. 5. Rival contentions were heard and the record and the submissions made have been examined. 6. Rival submissions were heard and the record and the submissions made have been examined. The Ld. AR raised the issue that the notice under section 148 which was issued is not signed. However, we find that before the Ld. CIT(A) in the appeal, proper representation was not made on behalf of the assessee. While the assessment order has been made u/s 144 of the Act to the best of judgement, the appeal has also been decided ex parte, primarily on account of non-prosecution on behalf of the assessee by the Ld. AR. Therefore, we deem it appropriate in the interest of justice and fair play that another opportunity needs to be provided to the assessee to represent his case properly before the Ld. CIT(A) and shall also be at liberty to raise all the legal issues as well before him. We, therefore, set aside the order of the Ld. CIT(A) and remit the appeal to him to be decided afresh, who shall allow an opportunity of being heard to the assessee and also grant an opportunity of representing the case and be heard to the Ld. AO as per rule 46A of the Income Tax Rules, 1962, if required, and thereby pass an order in accordance with law. For statistical purposes, the appeal of the assessee is partly allowed. 7. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 13th October, 2025. Sd/- Sd/- [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 13.10.2025 Bidhan (Sr. P.S.) Printed from counselvise.com Page | 4 I.T.A. No.: 272/KOL/2025 Assessment Year: 2016-17 M/s. 45 Bus Route Owner Association. Copy of the order forwarded to: 1. M/s. 45 Bus Route Owner Association, 6, Lenin Sarani, 1st Floor, Kolkata, West Bengal, 700013. 2. ITO, Ward-33(2), Kolkata. 3. CIT(A)-NFAC, Delhi. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata Printed from counselvise.com "