SAMPRATIK NEWS SERVICES P.LTD.,KOLKATA V. ITO, WARD 7(1), KOLKATA

ITA 949/KOL/2024

AI Insights

The case involves Sampratik News Service Pvt. Limited, a private limited company engaged in printing and distributing newspapers, which appealed against the order of the CIT(Appeals) for the Assessment Year 2020-21. The primary contention arose from an addition made by the Assessing Officer regarding a sum reported by the auditor as 'any sum paid to an employee as bonus or commission for services rendered'. The Assessing Officer added this sum to the taxable income, which was contested by the assessee. The CIT(Appeals) dismissed the appeal ex-parte due to non-representation and non-submission of evidence by the assessee. The ITAT, considering the principles of natural justice, remitted the case back to the CIT(Appeals) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 27087 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice

Judgement Text

" ITA No. 949/KOL/2024 (A.Y. 2020-2021) Sampratik News Service Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) I.T.A. No. 949/KOL/2024 Assessment Year: 2020-2021 Sampratik News Service Pvt. Limited,………Appellant C/o. S.N. Ghosh & Associates, Advocates, 2, Garstin Place, 2nd Floor, Suite No. 2023, Off. Hare Street, Kolkata-700001 [PAN:AAJCS6065R] -Vs.- Income Tax Officer,……………………………....Respondent Ward-7(1), Kolkata, Aayakar Bhawan, 5th Floor, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri Somnath Ghosh, Advocate, appeared on behalf of the assessee Shri Somnath Das Biswas, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: January 21, 2025 Date of pronouncing the order: February 26, 2025 O R D E R The present appeal is directed at the instance of assessee against the order of ld. Addl./JCIT(Appeals)-8, Mumbai dated 28th February, 2024 passed for Assessment Year 2020-21. ITA No. 949/KOL/2024 (A.Y. 2020-2021) Sampratik News Service Pvt. Limited 2 2. Brief facts of the case are that the assessee is a Private Limited Company, which was incorporated on 05.05.2004 with the main objects of carrying on business of printing and distributing newspapers. The appellant filed its return of income under section 139(1) of the Income Tax Act, 1961 on 01.02.2021 disclosing a total income of Rs.10,27,120/- for the assessment year under consideration. While framing the intimation, the ld. Assessing officer found in serial no. 20(a) of the Audit Report that the auditor has reported a sum of Rs.8,00,694/- in respect of ‘any sum paid to an employee as bonus or commission for services rendered, where such sum was otherwise payable to him as profits or dividend under section 36(1)(ii) and accordingly addition of such sum by way of adjustment was conceived by the ld. Assessing Officer. Thereafter ld. Assessing Officer framed an assessment order dated 18.12.2021 assessing the total income of Rs.19,02,230/-. 3. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). 4. The ld. CIT(Appeals) has given several opportunities to the assesese to substantiate its claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal ex-parte on 28th February, 2024. 5. On being aggrieved, the assessee preferred an appeal before the ITAT. ITA No. 949/KOL/2024 (A.Y. 2020-2021) Sampratik News Service Pvt. Limited 3 6. At the time of hearing, it was the submission of the ld. Counsel for the assessee that ld. CIT(Appeals) did not consider the case on merit, rather he just upheld the order passed by the ld. Assessing Officer. Therefore, he pleaded to delete the addition made by the ld. Assessing Officer as confirmed by the ld. CIT(Appeals). 7. 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 order assessing the taxable income at Rs.19,02,230/- as unexplained. Thereafter the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) has given many opportunities 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 revenue authorities. 8. I have heard the rival submissions and perused the material available on record. Considering the facts and circumstances of the case, I am inclined to set aside the order 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, I also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing ITA No. 949/KOL/2024 (A.Y. 2020-2021) Sampratik News Service Pvt. Limited 4 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 raised by the assessee are allowed for statistical purposes. 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 26/02/2025. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 26th day of February, 2025 Copies to :(1) Sampratik News Service Pvt. Limited, C/o. S.N. Ghosh & Associates, Advocates, 2, Garstin Place, 2nd Floor, Suite No. 2023, Off. Hare Street, Kolkata-700001 (2) Income Tax Officer, Ward-7(1), Kolkata, Aayakar Bhawan, 5th Floor, P-7, Chowringhee Square, Kolkata-700069 (3) Addl./JCIT(Appeals)-8, Mumbai; (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. "