PRAMOD KUMAR TEKRIWAL,KOLKATA V. ITO, WARD-30(4), KOLKATA

ITA 728/KOL/2024

AI Insights

The case involves Pramod Kumar Tekriwal, the appellant, contesting an order from the Income Tax Officer (ITO), Ward-30(4), Kolkata, which made additions to his income on account of alleged bogus purchases for the assessment year 2011-12. The additions were based on information from the Income Tax Investigation Wing, and despite notices issued to verify the purchases, no confirmations were obtained. The CIT(A) upheld the ITO's decision due to the appellant's non-compliance with hearing notices. The appellant challenged the legality of the reassessment proceedings and the additions made, arguing that the actions were based on uncorroborated material and lacked jurisdiction. The ITAT found merit in the appellant's request for a second chance to prove the bona fides of the purchases and thus remanded the case back to the CIT(A) for a detailed examination.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 469566 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 01-10-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 08-04-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reassessment proceedings; Bogus purchase; Reason to believe; Borrowed satisfaction; Bogus
• Section: 143(3); 250

Judgement Text

"आयकर अपीलीय अधिकरण कोलकाता 'ए' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA श्री संजय गगग, न्याधयक सदस्य एवं श्री संजय अवस्थी, लेखा सदस्य क े समक्ष Before SRI SANJAY GARG, JUDICIAL MEMBER & SRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No.: 728/KOL/2024 Assessment Year: 2011-12 Pramod Kumar Tekriwal………..………………………………………..Appellant [PAN: ABUPT 3079 K] Vs. ITO, Ward-30(4), Kolkata......................................................Respondent Appearances: Assessee represented by: P.K. Himmat Singhka, AR. Department represented by: Archana Gupta, Addl. CIT, Sr. DR. Date of concluding the hearing : October 1st, 2024 Date of pronouncing the order : October 18th, 2024 ORDER Per Sanjay Awasthi, Accountant Member: In this case, the Registry of ITAT has pointed out a delay of 259 days, which has been requested to be condoned as under: “I, Pramod Tekriwal, son of Chandi Prasad Tekriwal, residing at 110, Southern Avenue, Sarat Bose Road S.O, Kolkata, West Bengal- 700029, do hereby solemnly affirm as follows: 1. Filing of Appeal: An appeal was filed on February 3, 2017, for the assessment year 2011-12 before the CIT(A), NF AC against the order passed by the Assessing Officer, Ward 30(4). Kolkata on January 04, 2017, under Sections 143(3) and 147 of the Income Tax Act. I.T.A. No.: 728/KOL/2024 Assessment Year: 2011-12 Pramod Kumar Tekriwal. Page 2 of 4 2. Non-Receipt of Order: The order passed under Section 250 on May 25, 2023, was not revived by me via postal authorities, nor did I receive any communication regarding it from our counsel, Mr. Ankit Luharuka. 3. Counsel Confirmation: Counsel Mr. Ankit Luharuka has confirmed that he also did not receive any order passed under Section 250 for the assessment year 2011-12 in his mail. 4. Hosting of Order: I was unaware that the aforementioned CIT(A) order was hosted on the assessee's income tax portal. 5. Download of Order: The CIT(A) order dated May 25, 2023, was downloaded from the income tax portal on April 4, 2024. 6. Unawareness of Hosting: I affirm that I was not aware of any such order being hosted on the income tax portal. 7. Delay in Appeal Submission: The delay in submitting the appeal before the ITAT, Kolkata against the CIT(A) order dated May 25, 2023, was bona fide and reasonable. 8. Prayer for Condonation: I respectfully request & pray that any delay in submitting the appeal be condoned, and that the appeal be accepted for adjudication.” 1.1. Considering the averments made in the said affidavit, the delay is hereby condoned and this appeal is admitted for adjudication. 2. In this case, the Assessing Officer (hereinafter referred to as ld. 'AO') passed an order dated 04.01.2017 through which certain additions have been made on account of alleged bogus purchases, ostensibly on the basis of information received from the Income Tax Investigation Wing. It is seen that during the course of assessment proceedings the ld. AO issued notices u/s 133(6) of the Income Tax Act, 1961 (in short the 'Act') to as many as 24 parties for verifying purchases, but was unable to obtain confirmation from any of them. The ld. AO found the explanations offered by the assessee inadequate and proceeded to make the impugned additions. 2.1. Before the Commissioner of Income Tax (Appeals) [hereinafter referred to as ld. 'CIT(A)'], the appellant did not make any compliance of the notices issued for hearing of the case. In light of this the ld. CIT(A) confirmed the addition made by the ld. AO. I.T.A. No.: 728/KOL/2024 Assessment Year: 2011-12 Pramod Kumar Tekriwal. Page 3 of 4 2.2. Thereafter, aggrieved with this action, the appellant is before us with the following grounds of appeal: “1. For that the reassessment proceedings itself being bad in law. 2. That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that, there was no tangible, relevant, specific and reliable material on record on the basis of which, it could be held that, there was any reason to believe with the learned Assessing Officer that income of the appellant had escaped assessment and, in view thereof, the proceedings initiated were illegal, untenable and therefore, unsustainable. The reasons as noted by the Assessing Officer were mechanical on information received from Investigation Wing. The satisfaction of the Assessing Officer was borrowed satisfaction. 3. That the Ld. Commissioner of Income Tax (Appeals) has erred both in law and on facts in sustaining the initiation of proceedings under section 147 of the Act and, completion of assessment u/s 147/143(3) of the Act which were without jurisdiction and deserves to be quashed as such. 4. For that the Ld. Commissioner of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer in making the addition of full purchases to the tune of Rs 2,75,73,425/-, ignoring the corresponding sales. The addition is against the facts and circumstances of the case. 5. For that under the facts and circumstances of the case, the order passed by the Ld. CIT (A) is liable to be quashed and the appellant be given relief as prayed for. 6. For that the order the Ld. CIT(A) is arbitrary, illegal and bad in law. 7. That the appellant craves to add or amend any grounds of appeal on or before the date of hearing.” 3. Before us the ld. A/R challenged not only the reopening of the case but also the fact that addition was allegedly made on the basis of uncorroborated material. 3.1. The ld. A/R relied on the finding of ld. AO and stated that if the purchasers could not be identified then the ld. AO was justified in his actions. 4. We have carefully considered the arguments and the material before us. It is felt that the appellant deserves a second chance to prove his bona fide regarding the veracity of purchases. In light of this fact, this matter is remanded back to the file of ld. CIT(A) to adjudicate the issue. The appellant I.T.A. No.: 728/KOL/2024 Assessment Year: 2011-12 Pramod Kumar Tekriwal. Page 4 of 4 would do well to present his case before him, with whatever material he deems fit. In light of the discussion above, this matter is restored to the file of ld. CIT(A). 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 18th October, 2024. Sd/- Sd/- [Sanjay Garg] [Sanjay Awasthi] Judicial Member Accountant Member Dated: 18.10.2024 Bidhan (P.S.) Copy of the order forwarded to: 1. Pramod Kumar Tekriwal, 110, Southern Avenue, Kolkata, West Bengal, 700029. 2. ITO, Ward-30(4), Kolkata. 3. CIT(A)-NFAC, Delhi. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "