METMAGNA PROJECTS PVT. LTD.,KOLKATA V. I.T.O., WARD - 10(2), KOLKATA

ITA 2070/KOL/2024

AI Insights

The case involves Metmagna Projects Private Limited, which appealed against an order under section 250 of the Income Tax Act, 1961, concerning an addition of Rs. 2,99,64,000 as unexplained cash credit under section 68 of the Act. The initial appeal was dismissed by the CIT(A) due to non-response from the assessee despite multiple opportunities. The ITAT noted the detailed enquiries by the Assessing Officer but found that the assessee had not been able to present any facts before the first appellate authority. The ITAT decided to remand the case back to the CIT(A) for a fresh hearing, highlighting the importance of substantive justice and the right to be heard.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669251 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Unexplained cash credit
• Section: 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA SHRI DUVVURU RL REDDY, VICE PRESIDENT SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 2070/Kol/2024 (Assessment Year 2016-2017) Metmagna Projects Private Limited, Unit No. 8, 5th Floor, Phase I, New Alipore Market Complex, Block M, New Alipore - 700053 [PAN: AABCE7799Q] ……..…...…………….... Appellant vs. Income Tax Officer, Ward 10(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata - 700069 ................................ Respondent Appearances by: Assessee represented by : None Department represented by : Subhro Das, Addl. CIT, Sr. DR Date of concluding the hearing : 16.06.2025 Date of pronouncing the order : 24.06.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. In this case, there is a delay of 153 days of filing of the present appeal for which a petition has been filed as under: “1. That the appeal filed against the aggrieved assessement order was disposed of by the Hon'ble CIT(A), NFAC vide an Order dated 08.03.2024, the same was served on the mail of the assessee on 08.03.2024 2. That the time for filing of the appeal before the Tribunal expired on 06.07.2024. 3. That we engaged the services of an accountant, for the purpose of handling my accounts and my income tax matters. 4. That Shri Ranjit Kumar was entrusted with the responsibility of ensuring the accurate preparation and timely submission of my income tax returns and other income tax compliances. 5. That I relied on accountant to comply all requirements and obligations related to appellate proceeding u/s 250 of the Income Tax Act, 1961 related to AY 2016-2017. 2 ITA No. 2070/Kol/2024 Metmagna Projects Pvt. Ltd. 6. That as we trusted accountant, he was in full control of income tax login id and password and all compliance related matters. 7. That it came to my knowledge that there was negligence on the part of accountant, which led to non-compliance during appellate proceedings u/s 250 of the Income Tax Act, 1961 and that the dismissal of the case was not even communicated to me. 8. Only recently, when the said accountant left the Job and new accountant was appointed, we came to know about the ex-parte order of Hon'ble CIT (Appeal). 9. In light of above circumstances, the delay in the present case as the circumstances were beyond the control of the assessee.” Considering the reasons given in the said petition, the delay is hereby condoned and the appeal is admitted for adjudication. 2. This appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”), passed by Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, vide order dated 08.03.2024. 2.1 In this case, the Ld. AO passed an order dated 19.11.2018 by adding Rs. 2,99,64,000/- u/s 68 of the Act. The Ld. AO has given a finding that after detailed enquiries the genuineness of the transaction was not proved by the assessee. 2.2 The assessee approached the Ld. CIT(A) who is seen to have given as many as 8 opportunities of hearing without any response from the side of the assessee. Thereafter, the Ld. CIT(A) proceeded to dismiss the appeal of the assessee. 2.3 Aggrieved with this action, the assessee has approached the ITAT with the following grounds: “1. That the Order passed u/s 250 is bad in law as well as on facts of the case. 2. That the Hon'ble Commissioner of Income Tax (A) erred in law as well as on facts of the case by confirming the addition made by the Ld. Assessing Officer of treating the share capital raised to the tune of Rs.2,99,64,000/- as unexplained cash credit u/s 68 of the Income Tax Act. 3. That the appellant craves to leave, add, amend or adduce any of the grounds of appeal during the course of appellate proceedings.” 3 ITA No. 2070/Kol/2024 Metmagna Projects Pvt. Ltd. 3 On the last date of hearing, none appeared on behalf of the assessee but it was decided to proceed ahead with the adjudication since this was the 5th effective date of hearing in this matter. The Ld. DR was requested to assist the Bench in this regard. 3.1 We find that while the AO has made detailed enquiries at his level and has come to the conclusion that the impugned amount deserves to be taxed u/s 68 of the Act, it is also evident that the assessee has not been able to make any presentation of facts before the first appellate authority. The Ld. DR took pains to point out the extensive fact finding done by the Ld. AO and has thereafter, prayed that the action of Ld. CIT(A) should be confirmed. Be that as it may, we feel that howsoever compelling the case may appear against the assessee, he still deserves a chance to present the facts before an appropriate appellate forum. Thus, in the interest of substantive justice, we set aside the impugned order and remand this matter back to the file of Ld. CIT(A) for fresh adjudication. Needless to say, while the Ld. CIT(A) would give ample opportunity of being heard the assessee would do well to avail of such opportunities. 4. In result, this appeal is allowed for statistical purposes. Order pronounced on 24.06.2025 Sd/- Sd/- (Duvvuru RL Reddy) (Sanjay Awasthi) Vice President Accountant Member Dated: 24.06.2025 AK, Sr. P.S. Copy of the order forwarded to: 1. Metmagna Projects Private Limited 2. Income Tax Officer, Ward 10(2), Kolkata 3. Pr. CIT 4. CIT(A) 5. CIT(DR) 4 ITA No. 2070/Kol/2024 Metmagna Projects Pvt. Ltd. //True copy// By order Assistant Registrar, Kolkata Benches "