SRI TAPAN KUMAR SAHOO,CONTAI, PURBA MEDINIPUR V. I.T.O., WARD - 27(2), HALDIA, PURBA MEDINIPUR

ITA 1557/KOL/2024

AI Insights

The case involves Sri Tapan Kumar Sahoo, who appealed against the order of the Commissioner of Income Tax (Appeals), which was passed ex-parte due to his non-compliance with various notices and hearings. The appellant had initially declared a total income of Rs.4,36,380 in his return for the assessment year 2014-2015. However, subsequent surveys revealed undeclared income and unexplained sources of property purchases, leading to a reassessment of his income to Rs.50,19,530. The appellant's health issues, which prevented him from attending hearings or complying with notices, were presented as a reason for his non-compliance. The Tribunal found it just to remand the case back to the CIT(Appeals) for a thorough re-examination, considering the merits of the case and the appellant's circumstances.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26968 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-10-2024
• Assessment Year: 2014-2015
• Appeal Filed On: 22-07-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 148; 250

Judgement Text

" ITA No. 1557/KOL/2024 (A.Y. 2014-2015) Sri Tapan Kumar Sahoo 1 THE INCOME TAX APPELLATE TRIBUNAL, ‘B’ BENCH, KOLKATA Before Dr. Manish Borad, Accountant Member & Shri Sonjoy Sarma, Judicial Member I.T.A. No. 1557/KOL/2024 Assessment Year: 2014-2015 Sri Tapan Kumar Sahoo,……………….…..……Appellant C/o. M/s. Salarpuria Jajodia & Co., 7, C.R. Avenue, 3rd Floor, Kolkata-700072 [PAN:CAPPS8690K] -Vs.- Income Tax Officer,…………………………….…Respondent Ward-27(2), Haldia, Basudevpur, P.O. Khanjan Chak, Haldia, Purba Medinipur-721602 Appearances by: Shri S. Jhajhari, A.R., appeared on behalf of the assessee Shri P.P. Barman, Addl. CIT, appeared on behalf of the Revenue Date of concluding the hearing: October 01, 2024 Date of pronouncing the order: October 01, 2024 O R D E R Per Sonjoy Sarma, Judicial Member:- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 17th May, 2024 passed under section 250 of the Income Tax Act, 1961 in Assessment Year 2014-15. ITA No. 1557/KOL/2024 (A.Y. 2014-2015) Sri Tapan Kumar Sahoo 2 2. The facts of the case are that the appellant originally filed his return of income on 13.12.2014 declaring total income of Rs.4,36,380/-. A survey operation was conducted in the business premises of the appellant on 09.03.2017 and during which it was revealed that the appellant was also earning income from the business of plying of vehicles during the year, which was not declared. Further the appellant was found to have purchased properties during the year, the source of which was not ascertainable from the return of income. Based on this information, the case of the appellant was reopened and a notice under section 148 of the Income Tax Act was issued on 11.07.2017. However, the appellant did not properly comply with this notice and subsequent notices were also not responded by the appellant. Therefore, the ld. Assessing Officer made the following additions in the assessment order:- (i) Addition on account of substantial amount received from the appellant’s father Rs. 6,00,000/- (ii) Addition on account of unexplained unsecured loan Rs.15,02,000/- (iii) Addition on account of unsubstantial fresh sundry creditors Rs. 4,00,454/- (iv) Addition on account of unexplained sources of initial purchase of four vehicles Rs.20,80,600/- Thus, the total income of the appellant was assessed at Rs.50,19,530/-. Aggrieved by the order of ld. Assessing Officer, the appellant filed an appeal before the ld. CIT(Appeals). However, due ITA No. 1557/KOL/2024 (A.Y. 2014-2015) Sri Tapan Kumar Sahoo 3 to non-compliance with various notices and hearings, the appeal was dismissed as an ex-parte order against the assessee. 3. The appellant has now approached this Tribunal raising multiple grounds of appeal. The appellant contended that the order passed by the ld. CIT(Appeals) is ex-parte order and without properly considering the merits of the case. Therefore, it has been requested that the matter may be remanded back to ld. CIT(Appeals) for fresh consideration. The appellant has filed an affidavit stating the reasons for non-compliance before the ld. CIT(Appeals). It is claimed that the appellant was suffering from severe health issues from 17.01.2021 and was indisposed due to illness till July, 2024. It was only after this period that the appellant was able to resume his business activities. The appellant has ascertained that non-compliance was beyond his control and there was no intention of deliberately disregarding the notices issued by the ld. CIT(Appeals). The appellant has prayed before the Tribunal that non-compliance of the notices may be condoned and the matter may be remanded back to ld. CIT(Appeals) for proper hearing. The appellant has also given an undertaking that he will fully comply with all notices and will not fail to appear before the ld. CIT(Appeals) if an opportunity is given to him to represent his case. 4. On the other hand, ld. D.R. opposed the appellant’s prayer. The ld. D.R. submitted that the appellant had been provided ample opportunities to represent his case before the ld. CIT(Appeals) on various dates including 18.02.2021, 16.02.2024, 12.03.2024 and ITA No. 1557/KOL/2024 (A.Y. 2014-2015) Sri Tapan Kumar Sahoo 4 06.05.2024. The ld. D.R. argued that although the appellant was suffering from severe illness, he could have appointed ld. Counsel or Authorized Representative to attend the hearings on his behalf. Therefore, ld. D.R. requested that the appeal may be dismissed. 5. After hearing the rival submissions and perusing the material available on record, we find that although the ld. CIT(Appeals) issued notices, the appellant was unable to appear due to illness for a considerable period, as a result, the appeal was heard ex- parte without considering the merits of the case. In the interest of justice, it is deemed appropriate to remand the matter back to ld. CIT(Appeals) with a direction to examine the issues afresh and provide the appellant with a fair opportunity to present his case. The appellant is also directed to comply with all the notices and appear before the ld. CIT(Appeals) as and when required. 6. In terms of the above, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 01/10/2024. Sd/- Sd/- (Manish Borad) (Sonjoy Sarma) Accountant Member Judicial Member Kolkata, the 1st day of October, 2024 Copies to :(1) Sri Tapan Kumar Sahoo, C/o. M/s. Salarpuria Jajodia & Co., 7, C.R. Avenue, 3rd Floor, Kolkata-700072 ITA No. 1557/KOL/2024 (A.Y. 2014-2015) Sri Tapan Kumar Sahoo 5 (2) Income Tax Officer, Ward-27(2), Haldia, Basudevpur, P.O. Khanjan Chak, Haldia, Purba Medinipur-721602 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) CIT - , Kolkata; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "