M/S. KNIGHT DEAL TRADE PVT. LTD.,KOLKATA V. I.T.O., WARD - 4(2), KOLKATA

ITA 2475/KOL/2024

AI Insights

M/s Knight Deal Trade Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals)- NFAC, Delhi, which had dismissed their appeal for want of prosecution. The original dispute arose from an assessment order under sections 143(3) and 263 of the Income Tax Act, where the assessee's fresh share capital of Rs. 17,57,00,000 was added to their income due to non-compliance by the directors. The Tribunal found that the Ld. CIT(A) had not addressed the merits of the case and thus remitted the case back for a fresh decision, emphasizing the need for the assessee to be given a fair opportunity to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298598 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Revision of order
• Section: 143(3); 263

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “डी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 2475/Kol/2024 Assessment Year: 2008-09 M/s Knight Deal Trade Pvt. Ltd. (PAN: AADCK 0581 C) Vs. ITO, Ward-4(2), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 25.03.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 16.04.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Miraj D Shah, A.R For the revenue / राजèव कȧ ओर से Shri Rajat Mitra, CITDR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeals)- NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 09.10.2024 for AY 2008-09. 2 I.T.A. No. 2475/Kol/2024 Assessment Year: 2008-09 M/s Knight Deal Trade Pvt. Ltd. 2. Brief facts of the case of the assessee are that the assessee filed its return of income for AY 2008-09. The return of the assessee was processed and an assessment order was passed u/s 143(3) of the Act on 21.05.2010 determining the total income at Rs. 89,780/-. Subsequently the PCIT passed an order u/s 263 of the Act and set aside the order passed by the AO u/s 147/ 143(3) of the Act. Consequent to the order passed u/s 263 of the Act, the AO issued notices and also issued summons to the director. The AO vide its order dated 28.03.2014 has held that the assessee disclosed its fresh share capital of Rs. 17,57,00,000/- which consists of Rs. 36,12,000/- (being issued, subscribed and paid up shares) and Rs. 1,72,08,800/- (being premium amount for issued shares). The AO has further held that due to non-compliance of the then directors, fresh share capital during the year amounting to Rs. 17,57,00,000/- remained unexplained and accordingly the same has been added to the assessee’s total income. 3. Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed on account of non- compliance from the side of the assessee. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 4. The Ld. Counsel instead of arguing into the merit of the case has prayed that the case is to be restored into the file of the Ld. CIT(A) as the appeal of the assessee has been dismissed for want of prosecution. 5. The Ld. D.R did not raise any objection in remitting the case back to the file of Ld. CIT(A) though he supports the impugned order. 6. Upon hearing the submission made by the counsel of the respective parties, we have perused the order of Ld. CIT(A) and find that the appeal of the assessee has been dismissed by holding that the appeal is not interested in pursuing the appeal. There is no order passed by Ld. CIT(A) on the merit of the case of the assessee. The submission of the ld. Counsel of the assessee is that the assessee has to give an opportunity to place its case before the Ld. CIT(A). For the interest of justice, we are inclined to restore the appeal of the assessee to the file of Ld. CIT(A) with a direction to pass afresh order after 3 I.T.A. No. 2475/Kol/2024 Assessment Year: 2008-09 M/s Knight Deal Trade Pvt. Ltd. giving an opportunity to hear the assessee. The assessee is directed to co-operate in the proceedings. Accordingly, the order passed by the Ld. CIT(A) is hereby set aside the case is remitted back to the file of the Ld. CIT(A). In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 16th April, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 16th April, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- M/s Knight Deal Trade Pvt. Ltd. , 164/1, Manicktala Main Road, Kolkata-700054. 2. Respondent – ITO, Ward-4(2), Kolkata 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "