PAWAPURI RICE MILL PVT. LTD,NALANDA V. ITO, WARD-2(1), PATNA, PATNA

ITA 635/PAT/2024

AI Insights

Pawapuri Rice Mill Pvt. Limited filed appeals against the orders of the National Faceless Appeal Centre (NFAC), which had upheld the assessments made by the Income Tax Officer for the assessment years 2013-2014, 2014-2015, and 2015-2016. The assessments were based on unexplained bank deposits significantly exceeding the reported turnover. The ITAT noted the absence of representation from the assessee during the hearings and the lack of substantive evidence or documents to support the claims of the assessee. However, in the interest of justice, the ITAT decided to remit the case back to the CIT(Appeals) for a fresh evaluation, cautioning the assessee to cooperate fully in the proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 397156 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Business income; Opportunity of being heard; Principle of natural justice; Competent authority
• Section: 147

Judgement Text

" ITA No. 634/PAT/2024 (A.Y. 2013-2014) ITA No. 635/PAT/2024 (A.Y. 2014-2015) ITA No. 636/PAT/2024 (A.Y. 2015-2016) Pawapuri Rice Mill Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-PATNA ‘e-COURT’, KOLKATA [Hybrid Court Hearing] Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Sanjay Awasthi, Accountant Member I.T.A. No. 634/PAT/2024 Assessment Year: 2013-2014 & I.T.A. No. 635/PAT/2024 Assessment Year: 2014-2015 & I.T.A. No. 636/PAT/2024 Assessment Year: 2015-2016 Pawapuri Rice Mill Pvt. Limited,……..……..Appellant Pokhapur, Pawapuri, P.S. Giriyak, Nalanda-803115, Bihar [PAN:AAGCP6179C] -Vs.- Income Tax Officer,…………………….………...Respondent Ward-2(1), Patna, Bihar Appearances by: No n e, appeared on behalf of the assessee Smt. Rinku Singh, CIT (D.R.), appeared on behalf of the Revenue Date of concluding the hearing: May 05, 2025 Date of pronouncing the order: May 27, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present three appeals bearing ITA Nos. 634/PAT/2024, 635/PAT/2024 and 636/PAT/2024 are directed at the instance of assessee against the orders of ld. Commissioner of Income Tax ITA No. 634/PAT/2024 (A.Y. 2013-2014) ITA No. 635/PAT/2024 (A.Y. 2014-2015) ITA No. 636/PAT/2024 (A.Y. 2015-2016) Pawapuri Rice Mill Pvt. Limited 2 (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 14th March, 2024, 10th October, 2024 and 10th October, 2024 passed for Assessment Year 2013-14, 2014-15 and 2015-16 respectively. 2. None appeared on behalf of the assessee at the time of hearing. Therefore, we have decided to dispose of the appeals after hearing the ld. Departmental Representative and perusing the material available on record. 3. The appeal is time barred by 172 days in filing the appeals by the assessee. However, Managing Director of the assessee- Company filed a condonation petition saying that the assessee was not aware of the order passed by the ld. CIT(Appeals) as the Duirectgor Shri Dinesh Kumar Gupta, who was looking after affairs of the company was taken into judicial custody by Hon’ble session Judge, Patna on 24.03.2024 and released on bail on 04.03.2024 and apart from that, the Director and its family members were implicated in criminal case. When the assessee came to know about the order passed by the ld. CIT(Appeals) without considering the merit of the case, the assessee approached the ld. A.R. to prefer appeals, due to that there was a delay of 172 days in filing the appeals before the Tribunal. Therefore, he pleaded to condone the delay. 4. Considering the facts and circumstances of the case, we are of the view that the assessee was prevented in filing the appeals ITA No. 634/PAT/2024 (A.Y. 2013-2014) ITA No. 635/PAT/2024 (A.Y. 2014-2015) ITA No. 636/PAT/2024 (A.Y. 2015-2016) Pawapuri Rice Mill Pvt. Limited 3 within the stipulated time. Therefore, we are inclined to condone the delay of 172 days. Hence the delay is condoned. 5. Brief facts of the case are that the assessee is a Private Limited Company engaged in the business of Rice Mill Sector. It filed its return of income for the assessment years under consideration. Subsequently the cases were reopened under section 147 of the Act after obtaining approval of the competent authority after recording reasons. On verification, it was seen that the assessee-company has made huge deposits of Rs.9,74,22,046/- during financial year 2012-13 in the Bank Account maintained with Punjab National Bank, wherein it is found that the assessee has filed income tax return for AY 2013- 14 on 25.09.2014 disclosing gross receipt of Rs.80,34,313/- only. As the assessee could not satisfactorily explain the nature and source of such deposits, therefore, the difference between deposit made in the bank account and turnover disclosed in the return of income for AY 2013-14 i.e. Rs.8,93,87,733/- (Rs.9,74,22,046/- minus Rs.80,34,313/-) remains unexplained in the hands of assessee. The ld. Assessing Officer added this amount of Rs.8,93,87,733/- to the total income of the assessee under section 69A of the Income Tax Act as unexplained money in the hands of assessee. Finally, ld. Assessing Officer assessed income of the assessee for the assessment year 2013-14 at Rs.9,01,91,164/- (i.e. Rs.8,93,87,733/- plus 10% of gross receipt as business income). ITA No. 634/PAT/2024 (A.Y. 2013-2014) ITA No. 635/PAT/2024 (A.Y. 2014-2015) ITA No. 636/PAT/2024 (A.Y. 2015-2016) Pawapuri Rice Mill Pvt. Limited 4 5.1. Similarly On verification, it was seen that the assessee- company has made huge deposits of Rs.68,78,307/- during financial year 2013-14 in the Bank Account maintained with Punjab National Bank, wherein it is found that the assessee has not filed income tax return for AY 2014-15. As the assessee could not satisfactorily explain the nature and source of such deposits, therefore, the deposit made in the bank account remains unexplained in the hands of assessee. The ld. Assessing Officer added this amount of Rs.68,78,307/- to the total income of the assessee under section 69A of the Income Tax Act as unexplained money in the hands of assessee. Finally, ld. Assessing Officer assessed income of the assessee for the assessment year 2014-15 at Rs.68,78,307/-. 5.2. Similarly On verification, it was seen that the assessee- company has made huge deposits of Rs.78,12,945/- during financial year 2014-15 in the Bank Account maintained with Punjab National Bank, wherein it is found that the assessee has not filed income tax return for AY 2015-16. As the assessee could not satisfactorily explain the nature and source of such deposits, therefore, the deposit made in the bank account remains unexplained in the hands of assessee. The ld. Assessing Officer added this amount of Rs.78,12,945/- to the total income of the assessee under section 69A of the Income Tax Act as unexplained money in the hands of assessee. Finally, ld. Assessing Officer assessed income of the assessee for the assessment year 2015-16 at Rs.78,12,945/-. ITA No. 634/PAT/2024 (A.Y. 2013-2014) ITA No. 635/PAT/2024 (A.Y. 2014-2015) ITA No. 636/PAT/2024 (A.Y. 2015-2016) Pawapuri Rice Mill Pvt. Limited 5 On being aggrieved, the assessee preferred appeals before the ld. CIT(Appeals). 6. The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate its claim, but the appellant neither filed the written submission nor represented the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeals ex-parte on 14th March, 2024, 10th October, 2024 and 10th October, 2024 passed for Assessment Years 2013-14, 2014-15 and 2015-16 respectively. 7. On being aggrieved, the assessee preferred appeals before the ITAT. 8. At the outset, ld. D.R. brought to my notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer during the assessment proceedings. Therefore, the ld. Assessing Officer passed the assessment orders assessing the taxable income at Rs.9,01,91,164/- for A.Y. 2013-14, Rs.68,78,307/- for A.Y. 2014-15 and Rs.78,12,945/- for A.Y. 2015-16. Thereafter the assessee preferred appeals before the ld. CIT(Appeals). The ld. CIT(Appeals) has given many opportunities ITA No. 634/PAT/2024 (A.Y. 2013-2014) ITA No. 635/PAT/2024 (A.Y. 2014-2015) ITA No. 636/PAT/2024 (A.Y. 2015-2016) Pawapuri Rice Mill Pvt. Limited 6 to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Appeals). He further submitted that before the ITAT, the assessee did not substantiate its claim. Therefore, he pleaded to uphold the orders passed by the ld. CIT(Appeals). 9. We have perused the material available on record. Considering the facts and circumstances of the case, we are inclined to set aside the orders passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, we also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on the record. Thus, the grounds in the appeals raised by the assessee are allowed for statistical purposes. 10. In the result, all the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 27/05/2025. Sd/- Sd/- (Sanjay Awasthi) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 27th day of May, 2025 ITA No. 634/PAT/2024 (A.Y. 2013-2014) ITA No. 635/PAT/2024 (A.Y. 2014-2015) ITA No. 636/PAT/2024 (A.Y. 2015-2016) Pawapuri Rice Mill Pvt. Limited 7 Copies to :(1) Pawapuri Rice Mill Pvt. Limited, Pokhapur, Pawapuri, P.S. Giriyak, Nalanda-803115, Bihar (2) Income Tax Officer, Ward-2(1), Patna, Bihar (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "