TAPAN KUMAR NATH,KOLKATA V. ITO, WARD 22(2), KOLKATA

ITA 2344/KOL/2024

AI Insights

The case involves an appeal by Tapan Kumar Nath against the order of the Commissioner of Income Tax (Appeals), which sustained disallowances made by the Assessing Officer (AO) on grounds of unexplained cash credit and certain deposits. The appeal was initially time-barred, but a condonation of delay was accepted by the ITAT. The primary contention was the ex parte nature of the CIT(A)'s decision and the incorrect application of section 69A of the Income Tax Act, 1961, concerning unexplained cash credits. The ITAT noted the procedural oversight in not notifying the assessee properly and decided to remand the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32913 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AMULDEEP KAUR
• Assessee Lawyers: SIDDARTH AGARWAL
• Keywords: Condonation of delay; Opportunity of being heard; Unexplained cash credit; Principle of natural justice
• Section: 250; 251; 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 2344/KOL/2024 Assessment Year: 2017-18 Tapan Kumar Nath C/o Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite 213, 2nd Floor, Kolkata- 700069. (PAN: APMPS8395D) Vs ITO, Ward-22(2), Kolkata (Appellant) (Respondent) Present for: Appellant by : Shri Siddarth Agarwal, Advocate Respondent by : Smt. Amuldeep Kaur, JCIT Date of Hearing : 25.03.2025 Date of Pronouncement : 25.03.2025 O R D E R Per Bench : The captioned appeal by the assessee is against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/NFAC/S/250/2023- 24/1059768294(1) dated 16.01.2024 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2017-18. 2. Smt. Amuldeep Kaur, JCIT appeared on behalf of the Respondent and Shri Shri Siddarth Agarwal, Advocate appeared on behalf of the assessee. 3. The appeal of the assessee is time barred by 251 days. A separate application for condonation of delay dated 12.02.2025 has been placed in 2 ITA No.2344/Kol/2024 Tapan Kumar Nath, AY: 2017-18 file. Considering the averments made in the said application, we find that there is plausible reason to condone the delay and the delay of filing the appeal is hereby condoned. 4. The assessee has raised the following grounds of appeal: “1. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in passing the order ex parte. 2. For that on the facts and in the circumstances of the case, the Ld. CIT(A) erred in sustaining the disallowance of Rs.1,00,51,080/- made by the A.O. on account of unexplained cash credit by wrongly invoking the provisions of section 69A of the Act. 3. For that on the facts and in the circumstances of the case, the Ld. CIT(A) erred in sustaining the disallowance of Rs.1,31,500/- made by the AO on account of deposits in UCO Bank, Budge Budge Branch. 4. The appellant craves leave to add further grounds of appeal or alter the grounds at the time of hearing.” 5. The first issue raised by the assessee is non-representation before the Ld. CIT(A). Assessee submitted that he has not received the notices as the notices were served on the counsel of the assessee, who is no more handling the assessee’s appeal. Under this circumstance, in the interest of natural justice, the issues in this appeal of the assessee are restored to the file of the Ld. CIT(A) for adjudication afresh after granting reasonable opportunity of being heard to the assessee 6. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court. (Sanjay Awasthi) (George Mathan) Accountant Member Judicial Member Dated: 25th March, 2025 JD, Sr. P.S. 3 ITA No.2344/Kol/2024 Tapan Kumar Nath, AY: 2017-18 Copy to: 1. The Appellant: Shri Tapan Kumar Nath 2. ITO, Ward-22(2), Kolkata 3. CIT(A), NFAC, Delhi 4. Pr. CIT 5. DR, ITAT, Kolkata Bench, Kolkata 6. Guard file. True Copy By Order Assistant Registrar ITAT, Kolkata "