SHRI VARDHAN MAHTA. ,KOLKATA V. ACIT,CC-1(1), KOLKATA. , KOLKATA

ITSSA 160/KOL/2023

AI Insights

The case involves multiple appeals related to the assessment years 2009-10 to 2015-16, concerning Shri Vardhan Mohta, who was part of a group subjected to a search under section 132 of the Income Tax Act, 1961. The appeals were directed against the orders of the Commissioner of Income Tax (Appeals), which confirmed most additions made by the Assessing Officer, except for a protective addition of Rs. 8.55 Crore for AY 2010-11, which was deleted. The Tribunal noted the assessee's failure to respond to notices from the CIT(A) and decided to restore the matters to the CIT(A) for a fresh decision, emphasizing the need for a fair opportunity for the assessee to present his case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 36395 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 12 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 15-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 03-10-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 03-10-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Reasonable cause; Salary income; Accommodation entries
• Section: 143(3); 132; 153A

Judgement Text

"आयकर अपीलीय अधिकरण कोलकाता 'बी' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH, KOLKATA डॉ. मनीष बोरड, लेखा सदस्य एवं श्री संजय शमाा, न्याधयक सदस्य क े समक्ष Before DR. MANISH BORAD, ACCOUNTANT MEMBER & SONJOY SARMA, JUDICIAL MEMBER I.T.(S.S.)A. Nos.: 157 to 163/KOL/2023 Assessment Years: 2009-10 to 2015-16 Shri Vardhan Mohta………………………………………………………..Appellant [PAN: AELPM 0089 A] Vs. ACIT, Cen.Cir-1(1), Kolkata…………………………………………….Respondent I.T.A. No.: 1056/KOL/2023 Assessment Year: 2010-11 DCIT, Cen.Cir-1(1), Kolkata……………….………………………………Appellant Vs. Shri Vardhan Mohta……………………………………………………..Respondent [PAN: AELPM 0089 A] Appearances: Assessee represented by: P.K. Sanghai, AR. Department represented by: P.N. Barnwal, CIT DR. Date of concluding the hearing : October 3rd, 2024 Date of pronouncing the order : October 15th, 2024 ORDER Per Bench: In the captioned appeals IT(SS)A Nos. 157 to 163/KOL/2024 for AY 2009-10 to AY 2015-16 at the instance of the assessee and ITA No. 1056/KOL/2023 for AY 2010-11 at the instance of the Revenue are directed against separate but evenly dated orders of the Commissioner of Income Tax I.T.(S.S.)A. Nos.: 157 to 163/KOL/2023 Assessment Years: 2009-10 to 2015-16 I.T.A. No.: 1056/KOL/2023 Assessment Year: 2010-11 Shri Vardhan Mohta. Page 2 of 4 (Appeals)-20, Kolkata [hereinafter referred to as ld. 'CIT(A)'] dated 04.08.2023 arising out of the assessment order framed u/s 153A read with Section 143(3) of the Income Tax Act, 1961 (in short the 'Act') dated 15.09.2017 by ACIT, Cen.Cir-1(1), Kolkata. 2. As regards IT(SS)A nos. 157 to 163/KOL/2024, ld. Counsel for the assessee at the outset, submitted that the assessee failed to respond to various notices of hearing issued by the ld. CIT(A) nor did he file any written submission. As a result, ld. CIT(A) has confirmed the addition made by the Assessing Officer (hereinafter referred to as ld. 'AO') except for the protective addition of Rs. 8.55 Crore for AY 2010-11 which has been deleted by ld. CIT(A). He therefore, prayed that in the interest of justice, one more opportunity be provided by restoring all the issues raised on merits in the assessee’s appeals for AY 2009-10 to AY 2015-16 to ld. CIT(A) for necessary/afresh adjudication. 2.1. As far as ITA No. 1056/KOL/2024 is concerned, ld. D/R submitted that since the assessee could not appear before ld. CIT(A) and if this Hon'ble Tribunal grants one more opportunity to the assessee by restoring the issues to ld. CIT(A), then in such circumstances, the issues raised in the Revenue’s appeal in ITA No. 1056/KOL/2024 also deserves to be restored to ld. CIT(A) for afresh adjudication. 3. We have heard rival contentions and perused the records placed before us. We observe that the assessee an individual earning income from salary, house property, capital gain and income from other sources was subjected to search u/s 132 of the Act dated 17.03.2015 being part of the Mohta Group of Cases. Assessment 153A read with Section u/s 143(3) of the Act were framed for AY 2009-10 to AY 2015-16 and various additions were made. Aggrieved, the assessee preferred appeal before the ld. CIT(A). 3.1. Though the assessee appeared before the ld. AO during the course of assessment proceedings but failed to appear before the ld. CIT(A) which left no option to ld. CIT(A) except to proceed and decide the appeal on the basis I.T.(S.S.)A. Nos.: 157 to 163/KOL/2023 Assessment Years: 2009-10 to 2015-16 I.T.A. No.: 1056/KOL/2023 Assessment Year: 2010-11 Shri Vardhan Mohta. Page 3 of 4 of information available on record. Para 3 of the impugned order has been commonly observed in all the impugned orders and the same is reproduced below: “3. This appeal has been filed on 11-10-2017 against order u/s 153A r.w.s. 143(3) dated; 15.09.2017. Since then notices for hearing has been issued on 28.11.18, 11.02.2019, 14.03.2019, 27.06.2019, 05.08.2019, 19.11.2019, 17.04.2023 and 04.05.2023. In response to initial few notices, assessee sought adjournments through letters or e-mails. However, assessee stopped responding to notices issued subsequently. Assessee has not filed any written submission till date in support of his grounds of appeal. It appears that assessee is not interested in perusing his appeal. Hence, I hereby proceed to decide the appeal on the basis of information available in record.” 3.2. We further note that in absence of any submission from the assessee’s side and any other documentary evidence placed offline and only, ld. CIT(A) has decided the appeal and has confirmed most of the additions made by ld. AO. The only relief given by ld. CIT(A) was the deletion of protective addition made in the hands of the assessee of Rs. 8.55 Crore on the ground that the alleged accommodation entries have already been added in the hands of the respective companies/concerns/assessees who have received the accommodation entries. 3.3. We, however, considering that the finding of ld. CIT(A) is solely based on the records available and the assessee who filed the appeal, failed to make any submission and file any documentary evidence. Therefore, in the interest of justice and being fair to the parties, we deem it appropriate to restore all the issues raised in the instant appeals that is those raised by the assessee as well as the Revenue to the file of ld. CIT(A) for necessary adjudication for which assessee shall be provided reasonable opportunity to file the evidences, submissions and even request for admission of any additional evidences if deemed appropriate. In case of admitting additional evidence, ld. CIT(A) is directed to call for a remand report from ld. AO and then decide in accordance with law with a speaking order as contemplated u/s 250(6) of the Act. The assessee is also directed to remain vigilant and file necessary documents, if I.T.(S.S.)A. Nos.: 157 to 163/KOL/2023 Assessment Years: 2009-10 to 2015-16 I.T.A. No.: 1056/KOL/2023 Assessment Year: 2010-11 Shri Vardhan Mohta. Page 4 of 4 considered, in support of its grounds of appeal and should not take adjournment, unless otherwise required for reasonable cause. Accordingly, all the grounds of appeal raised by the assessee as well as by the Revenue are allowed for statistical purposes. 4. In the result, the appeals filed by the assessee and Revenue in ITA Nos. 157 to 163/KOL/2023 and 1056/KOL/2023 are allowed for statistical purposes. Order pronounced in the open Court on 15th October, 2024. Sd/- Sd/- [Sonjoy Sarma] [Manish Borad] Judicial Member Accountant Member Dated: 15.10.2024 Bidhan (P.S.) Copy of the order forwarded to: 1. Shri Vardhan Mohta, 6/2, Queens Park, Ballygung, Kolkata, West Bengal, 700019. 2. ACIT, Cen.Cir-1(1), Kolkata. 3. CIT(A)-20, Kolkata. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "