PARMESHWAR MERCHANDISE PVT. LTD.,KOLKATA V. I.T.O., WARD - 1(1), KOLKATA

ITA 2440/KOL/2024

AI Insights

The case involves two appeals by Parmeshwar Merchandise Pvt. Ltd. against orders passed by the Income Tax Officer and the Commissioner of Income Tax (Appeals), concerning undisclosed sales, loans, trade payables, share application money, and alleged bogus accommodation entries. The tribunal noted the repeated non-compliance of the assessee in responding to notices and hearings at both the assessment and appellate levels. Despite this, the tribunal decided to remand the cases for fresh adjudication to ensure substantive justice, expecting the assessee to utilize the opportunity to present their case adequately.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669253 (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: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Accommodation entries; Bogus
• Section: 147; 144

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. Nos. 2440 & 2441/Kol/2024 (Assessment Year 2014-2015) Parmeshwar Merchandise Pvt. Ltd., 85, Banerjee Para Road, Paschim Putiari, Kolkata - 700041 [PAN: AAECP9821B] ……..…...…………….... Appellant vs. Income Tax Officer, Ward 1(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata - 700069 ................................ Respondent Appearances by: Assessee represented by : None Department represented by : Raja Sengupta CIT-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. This is a batch of two appeals of the same assessee pertaining to the same assessment year while ITA No. 2440/Kol/2024 pertains to order of AO passed u/s 144 of the Income Tax Act, 1961 (hereafter “the Act”). ITA No. 2440/Kol/2024 1.1 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 30.09.2024. 1.3 In this case, none appeared on behalf of the assessee but it was decided to proceed ahead with the adjudication with the help of Ld. DR. In this case, the Ld. AO passed an order u/s 144 of the Act by making addition 2 ITA Nos. 2440 & 2441/Kol/2024 Parmeshwar Merchandise Pvt. Ltd. on account of undisclosed sales, loan given, trade payable and share application money. As it has been mentioned earlier, this order has been passed u/s 144 of the Act since it appears that the assessee did not make any compliance to the hearing notices, before the Ld. AO. 1.4 Before the Ld. CIT(A) also it is recorded on pages 3 and 4 of the impugned order that there was no response to the notices issued from time to time, as many as 7 times by the Ld. CIT(A), fixing the dates for hearing. Needless to say, the action of the Ld. AO was confirmed and the appeal filed by the assessee was dismissed. 2. The Ld. DR pointed out that the assessee was given ample opportunity to present his case but he has failed to do so before the lower authorities. 3. We have carefully considered the documents before us and it is felt that in the interest of substantive justice this appeal deserves to be remanded back to the file of Ld. CIT(A) for fresh adjudication. It is expected that the assessee would avail of the opportunities to present the facts of his case before the Ld. CIT(A). In light of this, the appeal is allowed for statistical purposes. ITA No. 2441/Kol/2025 4. This appeal emanates 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 30.09.2024. 5. In this case, the Ld. AO reopened the assessment u/s 147 of the Act on account of alleged bogus accommodation entries received from two entities. It is seen that in spite of several notices issued by the Ld. AO, the assessee did not make any presentation of facts and thereafter, the Ld. AO added an amount of Rs. 1,24,35,000/- u/s 69A of the Act. 3 ITA Nos. 2440 & 2441/Kol/2024 Parmeshwar Merchandise Pvt. Ltd. 5.1 Aggrieved with this action, the assessee approached the CIT(A) where also it is recorded on page 3 at para 4 of the impugned order that three notices sent fixing the case for hearing were not responded to at all. Needless to say, the Ld. CIT(A) confirmed the entire addition made u/s 69A of the Act. 6. Further aggrieved with this action, the assessee has approached the ITAT with grounds mainly challenging the assumption of jurisdiction by the Ld. AO and the denial of opportunity for presenting the facts. The impugned amount of Rs. 1,24,35,000/- added u/s 69A of the Act has also been challenged. As mentioned for ITA No. 2440/Kol/2024, none appeared on behalf of the assessee but it was decided to proceed ahead with the adjudication with the help of Ld. DR. 7. The Ld. DR pointed out that the Ld. AO has given detailed findings regarding the fact that the assessee is a beneficiary of bogus accommodation entries. The Ld. DR pointed out that neither before the Ld. AO nor before the Ld. CIT(A) did the assessee make any presentation of facts. In this manner, the Ld. DR supported the orders of authorities below. 8. We have carefully considered the facts of the case and it is seen that the assessee has been rather casual in responding to notices fixing the case for hearing issued by both of the authorities below. However, we are also conscious of the fact that as in appeal ITA No. 2440/Kol/2024 (supra), in the interest of substantive justice, the impugned order deserves to be set aside and this mater restored to the file of Ld. CIT(A) for fresh adjudication. Needless to say, while the Ld. CIT(A) would give adequate opportunity of being heard, the assessee would be expected to be alert to such opportunities and file his submissions and documents, as deemed it fit. Accordingly, the appeal ITA No. 2441/Kol/2024 is also allowed for statistical purposes. 9. Considering the discussion above both of the appeals are allowed for statistical purposes since they are remanded back to the file of Ld. CIT(A). 4 ITA Nos. 2440 & 2441/Kol/2024 Parmeshwar Merchandise Pvt. Ltd. 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. Parmeshwar Merchandise Pvt. Ltd., 2. Income Tax Officer, Ward 1(1), Kolkata 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "