MANGALAM DEALMARK PRIVATE LIMITED,AHMEDABAD V. ITO, WARD 9(1), KOLKATA

ITA 1013/KOL/2024

AI Insights

The case involves Mangalam Dealmark Pvt. Ltd., which appealed against the orders of the CIT(A) and AO regarding the assessment year 2013-14. Initially, the assessee filed a return declaring nil income, which was later reopened based on information about high-value transactions in various bank accounts. The AO added a substantial amount as unexplained money to the assessee's income. The CIT(A) dismissed the appeal due to non-response from the assessee, which was contested by the assessee on grounds of not being given a proper hearing. The Tribunal found procedural lapses in both the AO's and CIT(A)'s handling of the case and remitted the matter back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314669 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard
• Section: 147; 148

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “ए’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय एवं Įी राक ेश ͧमĮ, लेखा सटèय क े सम¢ [Before Shri Pradip Kumar Choubey, Judicial Member &Shri Rakesh Mishra, Accountant Member] I.T.A. No. 1013/Kol/2024 Assessment Year: 2013-14 Mangalam Dealmark Pvt. Ltd. (PAN: AAGCM 7984 A) Vs. ITO, Ward-9(1), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 23.04.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 07.05.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Ritesh Goel, Advocate For the revenue / राजèव कȧ ओर से Shri S Datta, CIT DR on behalf of A. Adhikari, JCIT, Sr. D.R ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeal)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 08.03.2024 for AY 2013-14. 2 I.T.A. No. 1013/Kol/2024 Assessment Year: 2013-14 Managalam Dealmark Pvt. Ltd. 2. Brief facts of the case of the assessee are that the assessee filed its return of income for AY 2013-14 declaring total income Nil. Later on, an information was received from the office of the DDIT, Unit-Kolkata about higher value transaction in various bank accounts. The case was reopened u/s 147 of the Act. Notice u/s 148 of the Act was issued. A show cause notice u/s 148A(b) was also issued on 01.06.2022 along with copy of information and material as available. The Ld. A.O after going over the submission made by the assessee added an amount of Rs. 3,48,35,887/- as an unexplained money and treated it the income of the assessee. 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 as there was no response from the side of the assessee. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 4. The Ld. A.R instead of arguing into the merit of the case has only submitted that the Ld. CIT(A) has passed an order ex-parte without giving any opportunity to the assessee to be heard and further submitted that the AO has also passed assessment order in haste without giving proper opportunity to the assessee i.e. apparent from the record that the AO has given two show cause notices dated 30.05.2023 that was received by the assessee on 31. 03.2023 asking to reply on 31.05.2023. The Ld. A.R further submits that the AO has not given any time to submit reply of show cause notice as the AO has passed an order on 31.05.2023 though the show cause notice alleged to be issued by the AO on 30.05.2023. The Ld. A.R prayed the appeal of the assessee be remitted back to the file of AO for proper verification and fresh adjudication after hearing the assessee. 5. Contrary to that the ld. D.R supports the impugned order but did not raise any objection in remitting appeal of the assessee to the file of AO. 6. We have gone through the order passed by the lower authorities and find that the order passed by the Ld. CIT(A) is an ex-parte order. There is no discussion on the merit of the case rather the Ld. CIT(A) has confirmed the order of AO only on this ground 3 I.T.A. No. 1013/Kol/2024 Assessment Year: 2013-14 Managalam Dealmark Pvt. Ltd. that there was no response submitted by the assessee. The Ld. CIT(A) has held that it is clear that the assessee is not interested in prosecuting the present appeal. Hence the order passed by the AO is hereby confirmed. We have also gone through the order of AO and find that the show cause notice was issued on 30.05.2023 asking the assessee why the alleged transaction amounting to Rs. 3,48,35,887/- should not be added back as per Section 69A of the Act. It is apparent from the order that assessment order was passed on 31.05.2023. The submission of the Ld. AR is that the assessee has not been given an opportunity to be heard nor he has been given opportunity to submit reply on the show cause notice as the order was passed in haste. The prayer of the AR is that the assessee has to be given an opportunity to place its case before the AO. 7. Going over the facts of the case and the submission made by the Ld. A.R, for the interest of justice, we are inclined to give an opportunity to the assessee to place its case before the AO. The Order passed by the AO confirmed by the Ld. CIT(A) is hereby set aside. The AO is directed to pass a order afresh after hearing the assessee and going over the documents filed by the assessee. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 7th May, 2025 Sd/- Sd/- (Rakesh Mishra /राक ेश ͧमĮ) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 7th May, 2025 SM, Sr. PS 4 I.T.A. No. 1013/Kol/2024 Assessment Year: 2013-14 Managalam Dealmark Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- Mangalam Dealmark Pvt. Ltd., 3, Samarparam N K Group of Society, Nr. Rupali Society, Commerse Six Road, Navrangpura, Ahmedabad, Gujarat- 380009. 2. Respondent – ITO, Ward-9(1), Kolkata 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "