M/S SUNRISE DAIRY PVT LTD,AHMEDNAGAR V. ITO WARD 2, AHMEDNAGAR

ITA 2409/PUN/2024

AI Insights

The case involves M/s Sunrise Dairy Pvt. Ltd., the appellant, contesting an order from the National Faceless Appeal Centre (NFAC), Delhi, which was based on an assessment order passed under sections 147 and 144 of the Income Tax Act, 1961. The primary contention was the dismissal of their appeal by the CIT(A) due to a delay in filing, without considering the merits of the case. The assessee argued that the delay was unavoidable and provided various details to substantiate their case, including transactions with ABN Trad Link Ltd. The Tribunal found merit in the assessee's arguments regarding the procedural lapses and granted a de-novo hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469578 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR
• Assessee Lawyers: VINITA SHAH
• Keywords: Set aside; Opportunity of being heard; Reasonable cause; Unexplained cash credit
• Section: 147; 144; 250; 68

Judgement Text

"आयकर अपीलीय अधिकरण \"बी\" न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL \"B\" BENCH, PUNE BEFORE Dr. MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2409/PUN/2024 धििाारण वषा / Assessment Year: 2017-18 M/s Sunrise Dairy Pvt. Ltd., Gut No. 125, At Post Ranjankhol Tilaknagar, Shrirampur, Ahmednagar-413720 Maharashtra PAN-AAPCS7121J Vs ITO Ward 2, Ahmednagar Appellant Respondent Assessee by : Smt. Vinita Shah Revenue by : Shri Ajay Kumar Keshari- CIT Date of hearing : 11.02.2025 Date of pronouncement : 20.02.2025 आदेश/ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : This appeal by the assessee pertaining to Assessment Year 2017- 18 is directed against the order dated 22.10.2024 passed by the National Faceless Appeal Centre, (NFAC) Delhi u/s. 250 of the Income-tax Act, 1961 (herein after also called ‘the Act’) which in turn is arising out of the Assessment Order passed u/s.147 r.w.s. 144 dated 04.03.2022. 2. The Assessee has raised following grounds of appeal:- “1. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in dismissing the appeal, by not allowing the condonation of delay, without granting gra opportunity of being heard to the appellant. 2. On the facts and in the circumstances of the case as well as in law, the Learned CIT(A) has erred in not adjudicating the ground of appeal that the Learned Assessing Officer has passed the ex- parte, assessment order u/s. 147 r.w.s. 144 r.w.s 144B of the Income Tax Act, 1961, without providing opportunity of being heard to the appellant. 2 ITA No.2409/PUN/2024 3. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in not adjudicating the ground of appeal that the Learned Assessing Officer has reopened the case u/s.147 of the Income Tax Act, 1961, without considering the facts and circumstances of the case. 4. On the facts and in the circumstances of the case as well as in law, the Learned Assessing Officer has erred in considering the income of the appellant at Rs. Nil instead of returned loss of Rs.2,58,05,601/- and thereby not allowing the carry forward of loss/set off of loss, without considering the facts and circumstances of the case. 5. On the facts and in the circumstances of the case as well as in law, the Learned CIT(A) has erred in not adjudicating the ground of appeal that the Learned Assessing Officer has made the addition of Rs.8,09,79,954/ u/s 68 of the Income Tax Act, 1961, by treating the sales made to ABN Trad Link Limited as alleged Unexplained cash credit without considering the facts and circumstances of the case. 6. On the facts and in the circumstances of the case as well as in law, the Learned CIT(A) has erred in not adjudicating the ground of appeal that the Learned Assessing Officer has invoked the section 115BBE of the Income Tax Act, 1961, without considering the facts and circumstances of the case. 7. The appellant craves leave to add, amend, alter or delete the said ground of appeal.” 3. At the outset ld. counsel of the assessee submitted that for inevitable reasons assessee could not appear before the Assessing Officer (AO) which resulted in framing of best judgement assessment u/s 147 r.w.s. 144 making addition u/s 68 of the Act. She further submitted that appeal filed before ld. CIT(A) was delayed by 37 days. Assessee also furnished various details to prove that impugned addition is uncalled for. However ld. CIT(A) dismissed the appeal in limine solely on the ground of delay in filing the appeal and did not deal with the merit of the case. She therefore prayed that an opportunity may be granted to go before the lower authority to prove its case and file necessary evidence. On the other hand ld. Departmental Representative (DR) supported the order of the ld CIT(A). 4. We have heard the rival contentions and perused the record placed before us. The ld. AO was constrained to pass ex- parte order and ld. CIT(A) has dismissed the appeal by not condoning the delay of 37 days. Before us Ld. counsel of the assessee has mentioned the reasons which prevented it from filing the appeal before the ld. CIT(A) within statutory time limit. Considering the same, we condone the delay of 37 days in filing of appeal before ld. CIT(A). 3 ITA No.2409/PUN/2024 5. We also notice that assessee has filed various details before ld. CIT(A) which mainly include the explanation about purchase entries for the transaction entered with ABN Trad Link Ltd., alongwith Bank Statement, Ledger Account, purchase invoice and confirmation. Considering the totality of the facts of the case, non adjudication of merits by ld. CIT(A) and the submissions made by the ld. Counsel for the assesse, we in the interest of justice deem it proper to give one more opportunity to the assessee. In view thereof, without dwelling into merits of the issue, the issues on merits in the instant appeals are being remitted to the file of Id.CIT(A) for “de-novo” adjudication. Assessee is at liberty to file any evidence as it deems expedient and ld.CIT(A) shall consider all the submissions of the assessee and pass the orders in conformity with the provisions envisaged u/s.250(6) of the Act. Assessee is also directed to provide correct email id to the department for receiving the hearing notices from the ITBA portal. Assessee is further directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A) shall be free to proceed in accordance with law. Findings of the ld.CIT(A) are set aside and effective grounds of appeal raised by the assessee for the year under appeal are allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 20th day of February, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER 4 ITA No.2409/PUN/2024 पुणे/ Pune; दििांक / Dated: 20th February, 2025. Neeta आिेश की प्रधिधलधप अग्रेधषि / Copy of the Order forwarded to: 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. धवभागीय प्रधिधिधि, आयकर अपीलीय अधिकरण, \"बी\" बेंच, पुणे / DR, ITAT, \"B\" Bench, Pune. 5. गार्ा फाइल / Guard File. आिेशािुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune. "