QUANTAM STOCK BROKING PVT. LTD.,NORTH TWENTY FOUR PARGANAS V. ITO, WARD 14(1), , KOLKATA

ITA 550/KOL/2025

AI Insights

Quantum Stock Broking Pvt. Limited appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, which had dismissed their appeal ex-parte. The primary issue was the addition of Rs.26,00,000 to the assessee's income, which was alleged to have escaped assessment. The Assessing Officer had reopened the case based on a report from the Investigation Wing and issued notices under sections 148 and 142(1) of the Income Tax Act. The CIT(Appeals) dismissed the appeal due to the absence of supporting documents and submissions from the assessee. The Tribunal found that the assessee had indeed submitted relevant documents and thus set aside the CIT(Appeals)'s order, remitting the case back for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772257 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard
• Section: 148; 142(1)

Judgement Text

" ITA No. 550/KOL/2025 (A.Y. 2014-2015) Quantum Stock Broking Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) I.T.A. No. 550/KOL/2025 Assessment Year: 2014-2015 Quantum Stock Broking Pvt. Limited,.………Appellant B.L. No. 10, Holding No. 11, Jagatdal, Dist. 24-Parganas (North)-743125, West Bengal [PAN:AAACQ0689E] -Vs.- Income Tax Officer,……………………………..Respondent Ward-14(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Muskan Shetia, C.A., appeared on behalf of the assessee Shri Kallol Mistry, JCIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: June 24, 2025 Date of pronouncing the order: August 25, 2025 O R D E R The present appeal is directed at the instance of assessee against the order of Id. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 28.01.2025 passed for Assessment Year 2014-2015. Printed from counselvise.com ITA No. 550/KOL/2025 (A.Y. 2014-2015) Quantum Stock Broking Pvt. Limited 2 2. Facts in brief are that the assessee is a Private Limited Company duly incorporated under the Companies Act, 1956 to carry on the business. The assesese filed its return of income electronically on 30.09.2014 declaring an income of Rs.7,472/-. The ld. Assessing Officer issued notice under section 148 of the Act dated 31.03.2021 for reopening the case on the report of Investigation Wing. Thereafter notice under section 142(1) of the Act was issued on 24.11.2021 without issuance of statutory notice under section 143(2) of the Income Tax Act and reasons for reopening the case. The assessee in its reply dated 09.12.2021 sought reasons for reopening against the said notice u/s 142(1). The ld. Assessing Officer issued another notice under section 142(1) of the Act on 02.03.2022 and in compliance, the assesese submitted the supporting documents including bank statements with explanation of credit entries, loan confirmations, ITR-V, tax computation, audited financial statements etc. The ld. Assessing Officer provided reasons for reopening along with notice u/s 142(1) of the Act that the assessee was in receipt of Rs.26,00,000/- from Dakshi Trade Pvt. Ltd. during FY 2013-14, which has escaped assessment as the assessee submitted that there was no receipt of any amount from Dakshi Trade Pvt. Ltd. A show-cause notice was issued to the assessee asking why Rs.26,00,000/- should not be added to the total income. The assessee was asked to provide confirmation from the Bank about certain transactions reflected in the bank statement, but in the reply of assessee, no date/year of receipt of Rs.26,00,000/- was mentioned. As the assessee did not show the transaction to the extent of Rs.26,00,000/- made with M/s. Dakshi Trade Pvt. Ltd. during FY 2012-13 but layering of Printed from counselvise.com ITA No. 550/KOL/2025 (A.Y. 2014-2015) Quantum Stock Broking Pvt. Limited 3 funds through multiple conduits having no genuine business activities, no creditworthiness, no other nature of transactions has been found other than just transferring the fund on the very same day, the ld. Assessing Officer assessed the total income of the assessee at Rs.26,07,470/- . 3. On being aggrieved, the assesese preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) dismissed the appeal of the assessee ex-parte by mentioning that the appellant has not furnished any written submission or documentary evidence in support of its grounds of appeal challenging the addition. The appellant has also not submitted any copy of its written submission or documentary evidence filed during the assessment proceedings. The onus lies on the appellant to support any claim by bringing in cogent documentary evidence but the appellant has not even filed written submission in support of its grounds of appeal despite several opportunities given. 4. On being aggrieved, the assessee preferred an appeal before the Tribunal. At the outset, ld. Counsel for the assessee argued that the assessee filed all the documents, i.e. bank statements with explanation of credit entries, loan confirmations, ITR-V, tax computation, audited financial statements etc. in support of its claim, but ld. Assessing Officer as well as ld. CIT(Appeals) did not consider it and dismissed the appeal. He, therefore, prayed before the Bench to set aside both the orders of revenue authorities. Printed from counselvise.com ITA No. 550/KOL/2025 (A.Y. 2014-2015) Quantum Stock Broking Pvt. Limited 4 5. On the other hand, it was the submission of the ld. Departmental Representative that during the appellate proceedings, so many opportunities were provided to the assessee to substantiate its claim, but no response was given from the side of assessee-company. Therefore, getting no other alternatives, ld. CIT(Appeals) passed his order ex-parte dismissing the appeal of the assessee. 6. I have heard both the sides and perused the material available on record. The ld. CIT(Appeals) dismissed the appeal of the assessee ex-parte as the assessee did not furnish any written submission or documentary evidence in support of its grounds of appeal challenging the addition in spite of several opportunities given. Therefore, considering the above finding of the ld. CIT(Appeals), I am of the view that it is a fit case to set aside the orders passed by the revenue authorities since the assessee has filed relevant documents before the Tribunal. Therefore, I set aside the order passed by the ld. CIT(Appeals) and remit the matter back to the file of ld. CIT(Appeals) to examine the documents after providing one more opportunity of being heard to the assessee. At the same breath, I 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 of the case, based on the materials available on the record. Thus, the grounds raised by the assessee in the appeal are allowed for statistical purposes. Printed from counselvise.com ITA No. 550/KOL/2025 (A.Y. 2014-2015) Quantum Stock Broking Pvt. Limited 5 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 25/08/2025. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 25th day of August, 2025 Copies to :(1) Quantum Stock Broking Pvt. Limited, B.L. No. 10, Holding No. 11, Jagatdal, Dist. 24-Parganas (North)-743125, West Bengal (2) Income Tax Officer, Ward-14(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) CIT(A), NFAC, Delhi; (4) CIT - , Kolkata; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. Printed from counselvise.com "