M/S. SAFAL COMMODEAL PVT. LTD.,KOLKATA V. I.T.O., WARD - 1(1), KOLKATA

ITA 2491/KOL/2024

AI Insights

The case involves M/s. Safal Commodeal Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals) - NFAC, Delhi, concerning the assessment year 2018-19. The primary issues in the appeal included the legality of the assessment order, the ex parte decision by the CIT(A), and the handling of income from shares and securities. The Tribunal noted procedural errors, particularly the incorrect email address used for communication, which led to the non-delivery of notices and an ex parte decision. The Tribunal found merit in the assessee's request for a re-hearing and thus remitted the case back to the CIT(A) with specific directions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708476 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Earning of tax free income
• Section: 143(3); 142(1)

Judgement Text

"आयकर अपीलीय अधिकरण कोलकाता 'बी' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH, KOLKATA श्री जॉजज माथान, न्याधयक सदस्य एवं श्री राक ेश धमश्रा, लेखा सदस्य क े समक्ष Before SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No.: 2491/KOL/2024 Assessment Year: 2018-19 M/s. Safal Commodeal Pvt. Ltd. Vs. I.T.O., Ward-1(1), Kolkata (Appellant) (Respondent) PAN: AANCS8815K Appearances: Assessee represented by : Abhishak Bansal, CA. Department represented by : Kapil Mandal, Addl. CIT (DR). Date of concluding the hearing : 16-June-2025 Date of pronouncing the order : 17-July-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 2018-19 dated 12.04.2024, which has been passed against the assessment order u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act, dated 30.03.2021. The assessee had requested vide application dated 10.04.2025 to correct the A.Y. to 2018- Page | 2 I.T.A. No.: 2491/KOL/2024 Assessment Year: 2018-19 M/s. Safal Commodeal Pvt. Ltd. 19 in Form No. 36 which was inadvertently mentioned as A.Y. 2013-14, which was allowed by the Registry. 1.1. The Registry has informed that the appeal filed by the assessee is barred by limitation by 162 days. An application seeking condonation of delay has been filed by the assessee stating as under: “The appellant do hereby most respectfully submits before your honours that in the present case, the appellate order is dated 12.04.2024. Accordingly the last date to file the appeal was 11.06.2024. As such there appears a delay of 178 days in filing the appeal. From the e-filing portal it appears that the order was sent through email. The appellant apprehends that however no such email was ever delivered. One of the reasons for non-delivery may be that the mail from income tax automatically went in 'junk mails' and got auto-deleted after lapse of 30 days time. The appellate order for the first time came to the notice of the company, when the audit of the financial statements of the company was being conducted for the Financial Year 2023-24 wherein the auditors of the Company brought the appellate order to the notice of the company. It is immediately thereafter the appellant logged into the e-filing portal and downloaded the appellant order and immediately contacted the tax consultant. However, due to engagements in audits, tax-audits, returns, ROC Filings, preparation and filing of appeal could be taken up by the tax consultant only after 30-11-2024 and in the process considering the date of order, there is a delay of 178 days. In view of the facts stated hereinabove, the appellant do hereby most respectfully request for condonation of delay. For this act of kindness, the appellant as in duty bound shall ever pray.” 1.2. Considering the application for condonation of delay and the reasons stated therein, we are satisfied that the assessee had a reasonable and sufficient cause and was prevented from filing the instant appeal within statutory time limit. We, therefore, condone the delay and admit the appeal for adjudication. Page | 3 I.T.A. No.: 2491/KOL/2024 Assessment Year: 2018-19 M/s. Safal Commodeal Pvt. Ltd. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: “1. For the assessment order passed by the Ld. AO is bad in law as well as on facts. 2. For that the Ld. C.I.T(A) erred in deciding the appeal ex parte without allowing the appellant any proper and reasonable opportunity of being heard. 3. For that the order passed by the Ld. C.I.T (A) is bad in law since the Ld. C.I.T(A) has not decided the issues ground wise in respect of the grounds raised by the appellant in the Memo of Appeal. 4. For that under the facts and circumstances of the case, the Ld. CIT(A) erred in confirming the action of Ld. AO by holding that the dealing in shares and securities was not the business of the assessee. 5. For that under the facts and circumstances of the case, the Ld. CIT((A) as well as Ld. AO erred in holding the income for interest was assessable as Income from other sources. 6. For that under the facts and circumstances of the case, the Ld. AO erred in disallowing the entire expenses incurred by the assessee during the year. 7. In any case, the Ld. AO erred in taking the cost of shares sold as Nil. Even otherwise when the cost is taken as Nil, no amount can be taxed since computational provisions fails. 8. For that the Ld. CIT(A) as well as Ld. AO erred in not following the Principles of Consistency whereas there the same business was carried out which has been accepted in summary as well as regular assessments and there were no change in the business. 9. For that the Ld. CIT(A) erred in confirming the action of Ld. AO in relying on the decision of Ld. AAR whereas the decisions of AAR are binding only on revenue and the assessee who sought the ruling. 10. For that Even Otherwise, the additions and disallowances made by the Ld. AO are merely based on surmises and conjectures. 11. For that the order of the AO be modified and the assessee be given relief prayed for. 12. For that the appellant craves leave to add, alter or withdraw any ground(s) of appeal on or before hearing of the appeal.” Page | 4 I.T.A. No.: 2491/KOL/2024 Assessment Year: 2018-19 M/s. Safal Commodeal Pvt. Ltd. 3. Brief facts of the case are that the assessee is a company and had e-filed its return of income showing total income of ₹2,35,710/-. The return was processed u/s 143(1) of the Act and the case of the assessee was selected for limited scrutiny for the reason of expenses incurred for earning exempt income and investment/advances/loans. Notices u/s 143(2) of the Act and subsequently u/s 142(1) of the Act were issued in response to which the assessee submitted its reply. The Assessing Officer (hereinafter referred to as Ld. 'AO') assessed the total income of the assessee at ₹88,06,695/- u/s 143(3) of the Act. Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A) who provided several opportunities to the assessee and after relying upon several judicial pronouncements held that the assessee is not keen on pursuing the same and accordingly dismissed the appeal. Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before this Tribunal. 4. Rival contentions were heard and the record and the submissions made have been examined. 5. It was submitted before us by the Ld. AR that the wrong email id [e-mail] was mentioned in Form No. 35 while filing the appeal before the Ld. CIT(A), while the correct email id was [e-mail], due to which the notices could not be responded. We find that the appeal had been decided ex parte, primarily on account of non-prosecution of the appeal on behalf of the assessee. 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). The Ld. AR also requested before us for one more opportunity to produce the documents Page | 5 I.T.A. No.: 2491/KOL/2024 Assessment Year: 2018-19 M/s. Safal Commodeal Pvt. Ltd. before the Ld. CIT(A) and to file all the details as required. In such circumstances, in the interest of justice, we restore the issues to the file of Ld. CIT(A) for re-adjudicating the issues afresh after granting the assessee adequate opportunity of being heard, subject to payment of cost of Rs.50,000/- (Rupees Fifty Thousand only) by the assessee to the Legal Aid Services, 3rd Floor of the Centenary Building, High Court, Calcutta-700001, within sixty days from the date of this order and to produce the receipt of the payment before the Ld. CIT(A) at the first hearing; and on failure of the assessee to do so, the order of the Ld. CIT(A) shall stand confirmed. The assessee is also directed to cooperate with the Ld. CIT(A) in the readjudication proceedings, positively. 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 allowed. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 17th July, 2025. Sd/- Sd/- [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 17.07.2025 Bidhan (Sr. P.S.) Page | 6 I.T.A. No.: 2491/KOL/2024 Assessment Year: 2018-19 M/s. Safal Commodeal Pvt. Ltd. Copy of the order forwarded to: 1. M/s. Safal Commodeal Pvt. Ltd., 3, Saklat Place, Kolkata, West Bengal, 700013. 2. I.T.O., Ward-1(1), 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 "