SNG MERCANTILE PRIVATE LIMITED,KOLKATA V. I.T.O., WARD - 2(4), KOLKATA, KOLKATA

ITA 1674/KOL/2024

AI Insights

The case involves SNG Mercantile Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals) - NFAC, Delhi, for the assessment year 2016-17. The assessee had initially faced a significant addition to its income as undisclosed income, which was upheld by the CIT(A) due to the absence of documentary evidence from the assessee. The Tribunal noted that the CIT(A)'s decision was made ex-parte and without merit discussion, leading to the restoration of the case to the CIT(A) for a comprehensive re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469681 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 142(1); 143(2)

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” 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. 1674/Kol/2024 Assessment Year: 2016-17 SNG Mercantile Pvt. Ltd. (PAN: AAECS 3998 N) Vs. ITO, Ward-2(4), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 21.01.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 30.01.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Asim Prakash, A.R For the revenue / राजèव कȧ ओर से Shri Kapil Mandal, Addl. CIT DR. ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against order of Commissioner of Income Tax (Appeal)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 10.05.2024 for AY 2016-17. 2 I.T.A. No. 1674/Kol/2024 Assessment Year: 2016-17 SNG Mercantile Pvt. Ltd. 2. At the outset, the ld. Counsel for the assessee submitted that the appeal filed by the assessee after a delay of 30 days. For this, a condonation petition has been filed which is as follows: 3 I.T.A. No. 1674/Kol/2024 Assessment Year: 2016-17 SNG Mercantile Pvt. Ltd. 3. The Ld. D.R did not raise any objection in condoning the delay. Therefore, the delay is hereby condoned. 4. Brief facts of the case of the assessee are that the assessee company filed its return of income for the AY 2016-17 declaring total income of Rs. 7,69,460/-. The case of the assessee was selected for scrutiny. A notice u/s 143(2) and 142(1) were issued and duly served on the assessee. In response to the notice the assessee company filed submission through e-filing portal but the assessee has failed to produce any satisfactory explanation, as a result of which, A.O. made an addition of Rs. 2,36,07,905/- as undisclosed income. 5. The said order has been challenged by the assessee before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed as the assessee failed to furnish any documentary evidences and not participated in the proceedings. Being aggrieved and dissatisfied with the order of Ld. CIT(A). 6. The Ld. Counsel for the assessee instead of arguing into merit of the case has submitted that the assessee has been given an opportunity to place its case before the Ld. CIT(A) as the appeal of the assessee has been dismissed not on merit rather due to non-compliance from the side of the assessee. The Ld. Counsel has submitted that due to some unavoidable reason the assessee could not be able to appear before the Ld. CIT(A) and now assessee undertakes that he will participate in the proceedings. 7. Contrary to that the Ld. D.R supported the order of Ld. CIT(A). 8. We have perused the order of Ld. CIT(A) and find that it has been passed an ex- parte order without discussion on the merit of the case of the assessee. The Ld. CIT(A) has confirmed the addition made by the AO only on this account that despite being provided ample opportunity there is no documentary evidences filed by the assessee. Before us, the Ld. CIT(A) has placed several papers which according to the assessee are essential piece of evidence to come to the right conclusion of the case. The index of the paper filed before us are as below: 4 I.T.A. No. 1674/Kol/2024 Assessment Year: 2016-17 SNG Mercantile Pvt. Ltd.  Annexure 1-ITR 6 FY 2015-16  Annexure 2- ITR V FY 2015-16  Annexure 3-Auditor’s Report & Financial Statements FY 2015-16  Annexure 4- 26AS FY 2015-16  Annexure 5- Agreement with Allahabad Zone  Annexure 6- Auditor’s Report & Financial Statements FY 2011-12  Annexure 7- ITR 6 FY 2011-12  Annexure 8- ITR V FY 2011-12  Annexure 9 – 26AS FY 2011-12  Annexure 10- List of Sundry debtors  Annexure 11- CA Certificate  Annexure 12- Bank Statement FY 2015-16 9. Going over the order of Ld. CIT(A), we are inclined to give an opportunity to the assessee to place its case before the Ld. CIT(A). Accordingly, the order passed by the Ld. CIT(A) is hereby set aside and the appeal is restored to the file of Ld. CIT(A) and the Ld. CIT(A) is directed to pass an order afresh after hearing the assessee and going over the documents filed by the assessee before us. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 30th January, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 30th January, 2025 SM, Sr. PS 5 I.T.A. No. 1674/Kol/2024 Assessment Year: 2016-17 SNG Mercantile Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- SNG Mercantile Pvt. Ltd., C/o, Asim Prakash, ALP & Associates, Flat-1 B, Geetanjali Apartment, 8B, Middleton Street, Kolkata-700071. 2. Respondent – ITO, Ward-2(4), Kolkata 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "