MUCHHAL AUTOLINKERS PRIVATE LIMITED,RANIGANJ V. INCOME TAX OFFICER WARD 3(1) ASANSOL, ASANSOL

ITA 122/KOL/2024

AI Insights

The case involves Muchhal Autolinkers Pvt. Ltd., which appealed against the order of the Ld. CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2017-18. The original assessment was made ex parte under section 144 of the Income Tax Act, 1961, by the ITO, Ward-3(1), Asansol, due to the non-appearance of the assessee. The AO made two significant additions to the assessee's income: one related to the application of a GP rate of 8% on total receipts, and another concerning unexplained cash credits during the demonetization period. Both additions were confirmed by the CIT(A). The Tribunal, after considering the circumstances and the arguments presented, decided to remand the case back to the AO for a fresh assessment, allowing the assessee another opportunity to present its case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473857 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 18-01-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJAY PAUL
• Assessee Lawyers: T. P. ROY
• Keywords: Set aside; Unexplained cash credit
• Section: 144; 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA [Before Shri Duvvuru R. L. Reddy, Vice President & Shri Rajesh Kumar, AM] I.T.A. No. 122/Kol/2024 Assessment Year: 2017-18 Muchhal Autolinkers Private Limited 36, P. N. Malia Road, Raniganj, H.O. Raniganj, West Bengal-712347. (PAN: AAFCM7388D) Vs. Income Tax Officer, Ward-3(1), Asansol Appellant Respondent Date of conclusion of Hearing 28.11.2024 Date of Pronouncement 05.12.2024 For the Assessee Shri T. P. Roy, Advocate For the Revenue Shri Sanjay Paul, CIT, DR ORDER Per Shri Rajesh Kumar, AM The captioned appeal filed by the assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi dated 01.12.2023 for AY 2017-18 arising out of assessment order passed u/s. 144 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) by ITO, Ward-3(1), Asansol dated 11.12.2019. 2. At the outset, we note that the assessment as well as appellate order has been framed ex parte as the assessee failed to appear on various dates of hearing during the respective proceedings before them. We observe that the AO has made two additions of Rs.21,04,839/- by applying G P rate of 8% as total receipt as shown by the assessee in P & L Account by invoking the provisions of section 44AA of the Act and the second addition made by the AO at Rs.84,00,500/- in respect of cash deposited into various bank accounts maintained by the assessee during the period of demonetization which has been added u/s. 68 of the Act as unexplained cash credit though the assessee’s books of account are audited and the assessee filed some information before the AO for non-attendance and AO made both the above decisions which were confirmed by the Ld. CIT(A) in the appellate proceedings. 2 ITA No. 122/Kol/2024 Muchhal Autolinkers Pvt. Ltd., AY 2017-18 3. The Ld. AR vehemently argued before us that the assessee may kindly be granted one more opportunity to present its case before the AO and in the interest of justice and fair play, the matter may be heard afresh after taking into account the merits of the case. Ld. DR opposed the request of the Ld. AR of the assessee. 4. After hearing both the parties and perusing the material available on record, we are of the view that the assessee should be afforded one more opportunity to present its case on merit before the AO. Accordingly, we set aside the order of the Ld. CIT(A) and revert the appeal to the file of the AO to decide the matter afresh after taking into account the evidence and after affording reasonable opportunity of hearing to the assessee. Appeal of the assessee is allowed for statistical purposes. 5. In the result, appeal of the assessee is is allowed for statistical purposes. Order is pronounced in the open court on 5th December, 2024 Sd/- Sd/- (Duvvuru R. L. Reddy) (Rajesh Kumar) Vice President Accountant Member Dated: 5th December, 2024 JD, Sr. PS Copy of the order forwarded to: 1. Appellant–Muchhal Autolinkers Pvt. Ltd. 2. Respondent – ITO, Ward-3(1), Asansol 3. CIT(A), NFAC, Delhi 4. Pr. CIT 5. DR, ITAT, Kolkata, True Copy By Order Assistant Registrar ITAT, Kolkata Bench, Kolkata "