SHREE BHAGIRATHI AGRO INDUSTRIES LLP,KOLKATA V. A.C.I.T., CIRCLE - 1(2), KOLKATA, KOLKATA

ITA 1721/KOL/2024

AI Insights

The case involves Shree Bhagirathi Agro Industries LLP, which appealed against the order of the Commissioner of Income Tax (Appeals) - Addl/JCIT(A)-2, Nagpur, for the assessment year 2017-18. The assessee had initially declared a loss but was later found to have withdrawn a substantial amount of cash, which was added to their income by the Assessing Officer (AO). The CIT(A) dismissed the appeal due to want of prosecution, leading to the current appeal before the ITAT. The ITAT found that the CIT(A)'s order was passed ex-parte without merit discussion and thus set aside the order, remitting the case back to the CIT(A) for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469665 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 143(2)

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 1721/Kol/2024 Assessment Year: 2017-18 Shree Bhagirathi Agro Industries LLP (PAN: ADCFS 1216 P) Vs. ACIT, Circle-1(2), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 18.03.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 03.04.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से None For the revenue / राजèव कȧ ओर से Smt. Ranu Biswas, Addl. CIT DR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeals)- Addl/JCIT(A)-2, Nagpur (hereinafter referred to as the Ld. CIT(A)] dated 06.02.2024 for AY 2017-18. 2 I.T.A. No. 1721/Kol/2024 Assessment Year: 2017-18 Shree Bhagirathi Agro Industries LLP 2. It appears from the report of the registry that the appeal has been filed after a delay of 130 days for this the assessee has filed condonation petition., which are as follows- 3 I.T.A. No. 1721/Kol/2024 Assessment Year: 2017-18 Shree Bhagirathi Agro Industries LLP On perusal of the condonation petition, the reason for delay in filing the appeal seems to be genuine and bonafide. The Ld. D.R did not raise any objection in condoning the delay. Keeping in view, the condonation petition as well as judicial pronouncement 4 I.T.A. No. 1721/Kol/2024 Assessment Year: 2017-18 Shree Bhagirathi Agro Industries LLP that the case should be decided on merit not on technical issue, the delay is hereby condoned. 3. Brief facts of the case of the assessee are that the assessee being a limited partnership firm engaged in the business of cold storage activities, filed return of income for AY 2017-18 declaring loss of Rs. 55,95,149/-. The case of the assessee was selected for scrutiny, statutory notices u/s 143(2) was issued. The AO find that the assessee has withdrawn huge cash amounting to Rs. 4,05,30,000/- during the AY 2017-18 and there was no explanation submitted by the assessee, as a result of which, the said amount has been added in the income of the assessee. 4. Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed for want of prosecution. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 5. None appeared on behalf of the assessee. It appears from the record that the order passed by the Ld. CIT(A) is an ex-parte order without adjudication on merit. The Ld. D.R though supports the impugned order but did not raise any objection if the appeal of the assessee remitted to the file of Ld. CIT(A). 7. After hearing the Ld. D.R, we have perused the order of AO as well as Ld. CIT(A). On perusal of the order of Ld. CIT(A) it appears to us that it has been passed an ex-parte order without discussing on merit of the case. The Ld. CIT(A) dismissed the appeal of the assessee by holding that despite of being several opportunities the assessee did not file any submission, hence the order passed by the AO is hereby confirmed. It is settled law that order shall not be passed in limine even it is passed ex-party. Keeping in view several judicial pronouncements that the case should be decided on merit, we are inclined to restore the appeal of the assessee before the Ld. CIT(A) with the direction to pass afresh order on merit after hearing the assessee. The assessee is also directed to co-operate in the proceedings. The order passed by the Ld. CIT(A) is hereby set aside. The case is remitted back to the file of Ld. CIT(A) for fresh adjudication without being prejudice to this order. The order passed by the CIT(A) is here by set aside. 5 I.T.A. No. 1721/Kol/2024 Assessment Year: 2017-18 Shree Bhagirathi Agro Industries LLP In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 3rd April, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 3rd April, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Shree Bhagirathi Agro Industries LLP, Flat No. 4A, Kapalitola lane, west Bengal, Kolkata - 700012 2. Respondent – ACIT, Circle-1(2), Kolkata 3. Ld. CIT(A)- Addl/JCIT(A)-2, Nagpur 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "