MAS PHARMECHEM,NALAGARH, HIMACHAL PRADESH V. A.C.I.T., CC - 2(4), , KOLKATA

ITSSA 45/KOL/2025

AI Insights

The case involves MAS Pharmechem, a partnership firm engaged in manufacturing medicines, which faced issues related to non-compliance with notices under sections 153A and 142(1) of the Income-tax Act, 1961. Following a search and seizure operation, the Assessing Officer (AO) made an addition of \\u20b95,20,65,962 to the assessee's income, citing bogus purchases. The assessee's appeal to the Commissioner of Income-tax (Appeals) was dismissed due to non-compliance. The Tribunal, considering the circumstances and the request for a fair hearing, decided to remit the case back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668960 (ITAT-KOLKATA)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRAVEEN KISHORE
• Assessee Lawyers: A. KOCHAR
• Keywords: Set aside; Bogus purchase; Search and seizure; Bogus
• Section: 144; 142(1); 132; 153A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI PRADIP KUMAR CHOUBEY, JM AND SHRI SANJAY AWASTHI, AM IT(ss) A Nos. 45 & 46/KOL/2025 (Assessment Years: 2018-19 & 2019-20) MAS Pharmechem Village-Dattowal, Nalagarh, Himachal Pradesh, Vs. ACIT, Central Circle-2(4) Aaykar Bhavan, 110, Shantipally, E.M. By pass, Kolkata-700107 (Appellant) (Respondent) PAN NO. AAPFM2714A Assessee by : Shri A. Kochar, AR Revenue by : Shri Praveen Kishore, DR Date of hearing: 16.06.2025 Date of pronouncement: 23.06.2025 O R D E R Per Pradip Kumar Choubey, JM: These are appeals preferred by the assessee against the orders of the Commissioner of Income-tax (Appeals), Kolkata-26 (hereinafter referred to as the “Ld. CIT(A)”] dated 10.03.2025 & 10.03.2025 for the AYs 2018-19 & 2019-20. 02. In both the appeals issue are common, hence, taken up together for disposal by taking ITA No.45/KOL/2025 as lead case. 03. The brief facts of the case are that the assessee is a partnership firm had engaged in the business of manufacturing of medicines. The assessee filed its return of income for the A.Y. 2018-19, declaring total income amounting to ₹7,77,75,640/-. A search and seizure operation u/s 132 of the Income-tax Act, 1961 (the Act) was conducted and during the course of search operations, several incriminating documents Page | 2 ITA Nos. 45 & 46/KOL/2025 MAS Pharmechem; A.Ys. 2018-19 & 2019-20 were impounded and seized. A notice u/s 153A of the Act was issued by asking from the assessee for true and correct return of its income including undisclosed income. The assessee failed to file its return of income in compliance to the notice issued u/s 153A of the Act. Moreover, notice u/s 142(1) of the Act along with questionnaire was issued but again there was non-compliance. Considering the repeated non-compliance, the order is passed u/s 144 of the Act. After taking into account all relevant materials the ld. AO added an addition of ₹5,20,65,962/- to the total income of the assessee by noting that there were bogus purchases. 04. Aggrieved by the said order assessee preferred the appeal before the ld. CIT (A), wherein the appeal of the assessee has been dismissed as again there was non-compliance from the side of the assessee. 05. Being aggrieved and dissatisfied, the assessee has preferred the appeal before us. 06. The ld. AR instead of arguing on merit of the case has only prayed in both the appeals that the matter should be remitted back to the file of the ld. AO as the order passed by the ld. AO confirmed by the ld. CIT (A) are an ex-parte order and no opportunity had been given to the assessee to represent his case. The ld. AR has only prayed that the appeals should be remitted back to the file of the ld. AO for fresh consideration. 07. Contrary to that, the ld. DR though supports the impugned order but did not raise any objection in remitting the appeal of the assessee to the file of the ld. Assessing Officer 08. Upon hearing the submission of the counsel of the respective parties and on perusal of the order of the ld. lower authorities, we find that the assessment order passed u/s 153A read with section 144 of the Act, Page | 3 ITA Nos. 45 & 46/KOL/2025 MAS Pharmechem; A.Ys. 2018-19 & 2019-20 when there was non-compliance from the end of the assessee. The ld. CIT (A) confirmed the order of the ld. AO when there was non- compliance on the part of the assessee. The ld. AR only prayed that a reasonable opportunity has to be given to the assessee to place its case before the ld. Assessing Officer. Considering the submission made by the assessee, on perusal of the impugned order and for interest of justice, we are inclined to remit the appeal of the assessee to the file of the ld. AO with a direction to hear the assessee and pass a fresh order. The order passed by the ld. lower authorities are hereby set aside and the matter is restored back to the file of the ld. AO for fresh adjudication in both the appeals. 09. In the result, the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on 23.06.2025. Sd/- Sd/- SANJAY AWASTHI (PRADIP KUMAR CHOUBEY) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Kolkata, Dated: 23.06.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "