MANAVTA TRADE LINK PVT. LTD.,KOLKATA V. I.T.O., WARD - 10(2), KOLKATA

ITA 1222/KOL/2025

AI Insights

The case involves Manavta Trade-Link Pvt Ltd, the appellant, contesting an order from the CIT(A), National Faceless Appeal Centre, Delhi, which pertained to the assessment year 2017-2018. The primary grievances included the rejection of the books of accounts under section 145 of the Income Tax Act, 1961, and the confirmation of an assessment under section 144, which estimated net profit at 1.5% on a substantial turnover, leading to a significant arbitrary addition to the income. The appellant argued that the books were regularly maintained and audited, and that proper opportunities to be heard were not granted at various stages of the assessment and appeal process. The Tribunal found merit in the appellant's contention regarding the lack of proper communication and opportunity to present their case, leading to the decision to set aside the CIT(A)'s order and remand the matter back to the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777046 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2025
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 03-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SALLONG YADEN
• Assessee Lawyers: MIRAJ D. SHAH
• Keywords: Set aside; Opportunity of being heard
• Section: 144; 145; 2

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI MANJUNATHA G, ACCOUNTANT MEMBER AND SHRI SONJOY SARMA, JUDICIAL MEMBER ITA No.1222/KOL/2025 (निर्धारण वर्ा /Assessment Year : 2017-2018) Manavta Trade-Link Pvt Ltd Room No.4, 24 Roy Steet, L.R.Sarani, Kolkata West Bengal-700020 Vs ITO, Ward-10 (2), Kolkata PAN No.AAICM 3500 C (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : Shri Miraj D. Shah, AR रधजस्व की ओर से /Revenue by : Shri Sallong Yaden, Addl.CIT-Sr.DR सुनवाई की तारीख / Date of Hearing : 17/09/2025 घोषणा की तारीख/Date of Pronouncement : 18/09/2025 आदेश / O R D E R Per Manjunatha G, AM: This appeal filed by the assessee is directed against the order passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 29.06.2024 pertaining to assessment year 2017-2018, on the following grounds :- 1. That the Order passed u/s 250 is bad in law as well as on facts of the case. That the Hon'ble Commissioner of Income Tax(Appeals) erred in upholding the action of the Ld. Assessing Officer in rejecting the books of accounts under section 145 of the Income Tax Act, 1961, without establishing any cogent or specific defect in the regularly maintained and audited books of accounts of the appellant 2. That the Hon'ble Commissioner of Income Tax (Appeals) further erred in confirming the assessment framed under section 144 of the Act by estimating net profit @1.5% on total Rs.64,50,64,196/-, and thereby sustaining an arbitrary addition of Rs. 96,75,963/-, ignoring the actual audited turnover and net profit disclosed by the appellant in its return 3. That the Ld. CIT(A) erred in not admitting that proper opportunity of being heard was not granted by the Assessing Officer before proceeding to reject the books and complete the Printed from counselvise.com ITANo.1222/Kol/2025 2 assessment u/s 144, as no show cause notice or adverse material was effectively confronted to the appellant. 4. That the appellant craves to leave, add, amend or adduce any of the grounds of appeal during the course of appellate proceedings. 2. At the outset, we find that the appeal of the assessee is delayed by 276 days. In this regard, the assessee has filed an affidavit stating the reasons that the order passed by the Assessing Officer was not communicated to the assessee, hence, prayed for condonation of delay. The ld.Sr. DR has no objection to the above contention of the assessee. Looking to the facts and circumstances of case and considering the sufficient reasons stated by the assessee in its affidavit, we condone the delay of 276 days in filing the present appeal and the appeal of the assessee is admitted for hearing. 3. We have heard both the parties and perused the materials available on record. On perusal of the assessment order, we find that the assessee could not file relevant details to substantiate its case, even though the Assessing Officer issued show cause notice proposing the additions. Therefore, the Assessing Officer completed the assessment and made the addition. Before the ld.CIT(A), despite issuance of notice on various occasions, no response from the assessee. Therefore, the ld.CIT(A) passed the order and upheld the additions made by the Assessing Officer towards estimation of profit from turnover. Ld. counsel for the assessee explained the reasons for non-appearance before the ld.CIT(A) and according to ld. counsel the notice issued by the ld.CIT(A) was not received by the assessee. We find that, reasonable opportunity of hearing means Printed from counselvise.com ITANo.1222/Kol/2025 3 sufficient opportunity of hearing to be given to the assessee to explain its case. Since the ld.CIT(A) has dismissed the appeal of the assessee for non-prosecution and upheld the addition made by the Assessing Officer on account of estimation of profit, in our considered view to give one more opportunity to the assessee, the matter needs to be set aside to the file of Assessing Officer. Accordingly, we set aside the order of ld.CIT(A) and restore the issue to the file of ld.AO with a direction to reconsider the issue de novo after providing the assessee sufficient opportunity of being heard. 4. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 18/09/2025. SD/- (SONJOY SARMA) Sd/- (MANJUNATHA G) न्यधनयक सदस्य / JUDICIAL MEMBER लेखा सदस्य/ ACCOUNTANT MEMBER कोलकाता Kolkata; ददनाांक Dated 18/09/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "