STARCOMP INFOTECH PVT. LTD.,KOLKATA V. D.C.I.T., CIRCLE 1.2, KOLKATA

MA 41/KOL/2024

AI Insights

Starcomp Infotech Pvt. Ltd. filed a Miscellaneous Application seeking to recall an ex-parte order dismissing their appeal for the assessment year 2013-14. The appeal was initially dismissed due to the non-appearance of the assessee, attributed to an outdated address on the notice. The assessee had informed the Tribunal of their new address prior to the hearing, but the notice was still sent to the old address. The Tribunal considered the circumstances, including the health issues of the director responsible for taxation matters, and decided to recall the ex-parte order to allow the appeal to be heard on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25418 (ITAT-KOLKATA)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Laws Referred To: Section 254(2) of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAILEN SAMADDER
• Assessee Lawyers: SIDDARTH AGARWAL; WAY OF THIS MISCELLANEOUS APPLICATION PRAYS
• Keywords: Set aside
• Section: 254(2)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI SANJAY GARG, JM AND SHRI RAJESH KUMAR, AM MA No.41/KOL/2024 (Arising in ITA No. 1373/KOL/2019 for A.Y. 2013-14) Starcomp Infotech Pvt. Ltd. 264B, B.B. Ganguly Street, 10, G.C. Avenue, Ground Floor, Kolkata-700013, West Bengal Vs. DCIT, Circle 1(2), Kolkata West Bengal (Applicant) (Respondent) PAN No. AANCS9498N Assessee by : Shri Siddarth Agarwal, AR Revenue by : Shri Sailen Samadder, DR Date of hearing: 03.01.2025 Date of pronouncement : 21.01.2025 O R D E R Per Rajesh Kumar, AM: The assessee by way of this Miscellaneous Application prays for recalling the order passed in ITA No.1373/KOL/2019, for A.Y. 2013-14 dated 29.08.2022, by the coordinate bench dismissing the assessee’s appeal, ex-parte. 02. The ld. Authorized Representative submitted before the Bench that the appeal of the assessee was dismissed ex-parte, when the assessee failed to appear on the date of fixed by the hearing. The ld. Authorized Representative drew our attention of the Bench to the letter dated 14.12.2020, informing the change of address of the assessee. However, the notice of hearing was sent on the old address. The ld. Authorized Representative submitted that the appeal was decided ex- Page | 2 MA No.41/KOL/2024 Starcomp Infotech Pvt. Ltd.; A.Y. 2013-14 parte by the Bench on the very first day of hearing on the ground that there was no appearance before the ld. AO as well as before the ld. CIT (A). The bench also observed that the assessee is a shell company. The ld. Authorized Representative also submitted that non- appearance before all the authorities below were for the reasons which were beyond the control of the assessee. The ;ld AR also submitted that the director of the assessee who was looking after the taxation matters Shri Sumit Lundia, was suffering very multiple ailments. The ld. Authorized Representative therefore, prayed that in the interest of justice and fair play the order of the tribunal dismissing the appeal of the assessee may recalled under the Provisions of Section 254(2) of the Act so that the same could be decided on merits after giving opportunity of hearing to the assessee. 03. The ld. DR on the other hand, strongly opposed the arguments of the ld. Authorized Representative by submitting that there was substantial delay in filing the Miscellaneous Application by the assessee and therefore, the same was not maintainable and may be dismissed. 04. After hearing the rival contentions and perusing the materials available on record, we find that on the very first day of hearing, the appeal of the assessee was dismissed for non-appearance, despite the fact that there was a change of address in the assessee’s case and the Tribunal was duly informed by the assessee about the said change before hearing of the appeal vide letter dated 14.12.2020. Therefore non attendance of hearing by the assessee is due to the reasons beyond the control of the assessee. Considering the facts and circumstances, we are inclined to recall the order dated 29.08.2022 in ITA No. 1373/KOL/2019. So far as the contention of the ld. DR is Page | 3 MA No.41/KOL/2024 Starcomp Infotech Pvt. Ltd.; A.Y. 2013-14 concerned that there is a delay of more than 6 months in filing the MA, we note that the same is not applicable in the present case as the appeal was heard ex-parte and in terms of Rule 24, the Tribunal has the power to set aside the ex-parte order and restore the appeal if there was sufficient cause for non-appearance of the assessee. Accordingly, the MA is allowed by recalling the order dated 29.08.2022. 05. In the result, the MA of the assessee is allowed. Order pronounced in the open court on 21.01.2025. Sd/- Sd/- (SANJAY GARG) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 21.01.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "