STYLISH PRECAST PVT. LTD.,KOLKATA V. A.C.I.T., CIRCLE - 5(1), KOLKATA

ITA 2497/KOL/2024

AI Insights

Stylish Precast Pvt. Ltd., a company, filed an appeal against the orders of the AO and the CIT(A) concerning the assessment year 2017-18. The company had declared a total loss under normal provisions and a book loss under section 115JB of the Income Tax Act. The case was selected for scrutiny, and despite notices under sections 143(2) and 142(1), the assessee failed to comply, leading to an unchallenged assessment of income by the AO. The CIT(A) also dismissed the appeal due to non-compliance. The Tribunal, considering the circumstances, decided to set aside the previous orders and remand the case back to the AO, emphasizing the need for a fair opportunity for the assessee to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396523 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 142(1); 115JB

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय एवं Įी संजय अवèथी, लेखा सटèय क े सम¢ [Before Shri Pradip Kumar Choubey, Judicial Member &Shri Sanjay Awasthi,Accountant Member] I.T.A. No. 2497/Kol/2024 Assessment Year: 2017-18 Stylish Precast Pvt. Ltd. (PAN: AAICS 1636 D) Vs. ACIT, Circle- 5(1), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 15.05.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 26.05.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Rakesh Jain, A.R For the revenue / राजèव कȧ ओर से Shri Subhro Das, Addl. CIT Sr. D.R ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeal)-Addl. /JCIT(A)-Ranchi (hereinafter referred to as the Ld. CIT(A)] dated 21.02.2024 for AY 2017-18. 2 I.T.A. No. 2497/Kol/2024 Assessment Year: 2017-18 Stylish Precast Pvt. Ltd. 2. Brief facts of the case of the assessee is that the assessee being a company filed its return of income declaring total loss of Rs. 1,74,87,200/- under normal provision of the Act and book loss of Rs. 26,12,873/- under the provision of section 115JB of the Act. The case of the assessee was selected for scrutiny, notice u/s 143(2) was issued. Statutory notice u/s 142(1) was also issued but the assessee failed to provide proper explanation as sought from the various notices; as a result of which the AO assessed the total income as under: 3. Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed as there was no compliance. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 3 I.T.A. No. 2497/Kol/2024 Assessment Year: 2017-18 Stylish Precast Pvt. Ltd. 4. The Ld. A.R instead of arguing into the merit of the case has only prayed that the assessee has to be given an opportunity to place its case before the AO, as the order passed by the AO confirmed by the Ld. CIT(A) behind the back of the assessee. 5. Contrary to that the Ld. D.R supports the impugned order. 6. Upon hearing the submission of the counsel of the respective parties, we have perused the order of both the lower authorities and find that the AO has assessed the total income of the assessee when there was no compliance, the Ld. CIT(A) has also dismissed the appeal of the assessee in limine as there was no compliance. Since the order passed by the Ld. CIT(A) not on the merit and the order passed by the AO is also in absence of the assessee, for the interest of justice we feel it necessary to provide an opportunity to the assessee to place its case before the AO. Accordingly, we restore the appeal of the assessee before the AO for fresh adjudication, and the order passed by the AO confirmed by the Ld. CIT(A) is hereby set aside. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 26th May, 2025 Sd/- Sd/- (Sanjay Awasthi /संजय अवèथी) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 26th May, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Stylish Precast Pvt. Ltd., 10, Dr. Rajendra Prasad Sarani, Kolkata- 700001 2. Respondent – ACIT, Circle-5(1), Kolkata 3. Ld. CIT(A)- Addl./JCIT(A)-Ranchi 4 I.T.A. No. 2497/Kol/2024 Assessment Year: 2017-18 Stylish Precast Pvt. Ltd. 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "