SANJOY KUMAR GHOSH,BURDWAN V. ITO, WARD 1(4), , BURDWAN

ITA 776/KOL/2025

AI Insights

The case involves Sanjoy Kumar Ghosh, the appellant, who contested the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi, concerning the assessment year 2017-18. The appellant faced a significant delay of 380 days in filing the appeal, attributed to unawareness of the web portal where the order was posted. The ITAT found merit in the appellant's reason for the delay and condoned it. The primary issues in the case revolved around the non-compliance of the appellant with notices under sections 143(2) and 142(1) of the Income Tax Act, leading to the addition of unexplained money and bogus liabilities to the appellant's income. The CIT(Appeals) had dismissed the appeal ex-parte due to the appellant's failure to provide necessary submissions or evidence. The ITAT, emphasizing the principles of natural justice, decided to remit the case back to the CIT(Appeals) for a thorough re-examination, cautioning the appellant to cooperate fully in the proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669283 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• 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; Bogus
• Section: 143(3); 142(1)

Judgement Text

" ITA No. 776/KOL/2025 (A.Y. 2017-2018) Sanjoy Kumar Ghosh 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH, KOLKATA Before Shri Duvvuru RL Reddy, Vice-President (KZ) & Shri Rakesh Mishra, Accountant Member I.T.A. No. 776/KOL/2025 Assessment Year: 2017-2018 Sanjoy Kumar Ghosh,………….………..………Appellant C/o. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2nd Floor, Kolkata-700069 [PAN:ADEPG2967P] -Vs.- Income Tax Officer,…………………..….…....Respondent Ward-1(4), Burdwan, Aayakar Bhawan, Court Compound, Burdwan-713101, West Bengal Appearances by: Parna Dutta, Advocate, appeared on behalf of the assessee Shri S.B. Chakraborthy, Addl. CIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: June 17, 2025 Date of pronouncing the order: June 24, 2025 O R D E R Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), ITA No. 776/KOL/2025 (A.Y. 2017-2018) Sanjoy Kumar Ghosh 2 National Faceless Appeal Centre (NFAC), Delhi dated 18th January, 2024 passed for Assessment Year 2017-18. 2. The appeal is time barred by 380 days in filing the appeal by the assessee. However, the assessee filed a condonation petition saying that due to unawareness of the web portal of the Income Tax Department, he was not aware of the order passed by the ld. CIT(Appeals). When the assessee came to know about the order passed by the ld. CIT(Appeals), the assessee approached the ld. A.R. to prefer an appeal, due to that there was a delay of 380 days in filing the appeal before the Tribunal. Therefore, he pleaded to condone the delay. 3. Considering the facts and circumstances of the case, we are of the view that the assessee was prevented in filing the appeal within the stipulated time. Therefore, we are inclined to condone the delay of 380 days. Hence the delay is condoned. 4. Brief facts of the case are that the assessee is an individual, who filed his return of income for the assessment year 2017-18 on 13.11.2017 declaring total income of Rs.4,96,870/-. The case was selected for limited scrutiny through CASS. Notice under section 143(2) was issued on 09.08.2018 and duly served on the assessee. Later notices under section 142(1) were issued on different dates along with questionnaire and duly served upon the assessee through e-proceedings, but the assessee did not comply with the notices. From the record, it was noticed that the assessee deposited cash in the Bank account of Allahabad Bank, Gar ITA No. 776/KOL/2025 (A.Y. 2017-2018) Sanjoy Kumar Ghosh 3 Bhawanipur Branch amounting to Rs.9,90,500/-, which was treated by the ld. Assessing Officer as unexplained money as the assessee did not produce any evidence and comply with the notices issued. The assessee has shown unsecured loan to the tune of Rs.1,32,000/-. The assessee was asked to produce the details of unsecured loan vide notice dated 13.11.2019, but the assessee did not comply. The ld. Assessing Officer treated it as bogus liability and added to the total income of the assessee. The assessee has shown agricultural income relevant to A.Y. 2017-18 amounting to Rs.5,62,740/-. As the assessee did not furnish anything, the ld. Assessing Officer treated the amount of Rs.5,62,740/- as undisclosed income from other sources and added to the total income of the assessee. From the balance-sheet it was noticed that the total amount of investment of the assessee was Rs.36,51,052/- and there was an increase in investment amounting to Rs.38,25,024/- during the FY 2016-17 as per figure disclosed by the assessee. As the assessee failed to furnish anything in support of his claim, the ld. Assessing Officer treated the amount as undisclosed and added to the total income of the assessee. Finally, the ld. Assessing Officer assessed income of the assessee at Rs.60,07,130/- under section 143(3) of the Income Tax Act, 1961. 5. Being not satisfied, the assessee preferred an appeal before the ld. CIT(Appeals). 6. The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate his claim, but the appellant neither filed the written submission nor represented the case before the ld. ITA No. 776/KOL/2025 (A.Y. 2017-2018) Sanjoy Kumar Ghosh 4 CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal ex-parte on 18th January, 2024. 7. On being aggrieved, the assessee preferred an appeal before the ITAT. 8. We have heard both the sides. At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned order be set aside and remitted back to the file of ld. CIT(Appeals) for deciding it afresh. 9. 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.60,07,130/-. 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 his claim. Therefore, he pleaded to uphold the order passed by the CIT(Appeals). 10. We have perused the material available on record. Considering the facts and circumstances of the case, we are 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 ITA No. 776/KOL/2025 (A.Y. 2017-2018) Sanjoy Kumar Ghosh 5 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 raised by the assessee are allowed for statistical purposes. 11. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 24/06/2025. Sd/- Sd/- (Rakesh Mishra) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 24th day of June, 2025 Copies to :(1) Sanjoy Kumar Ghosh, C/o. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2nd Floor, Kolkata-700069 (2) Income Tax Officer, Ward-1(4), Burdwan, Aayakar Bhawan, Court Compound, Burdwan-713101, West Bengal (3) CIT(Appeals), 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. "