UNIVERSAL ENTERPRISES,KOLKATA V. DCIT,CIRCLE-36, KOLKATA

ITA 2579/KOL/2024

AI Insights

The case involves Universal Enterprises, which appealed against the order of the Commissioner of Income Tax (Appeals)-12, Delhi, concerning the assessment year 2006-07. The primary issue arose from the assessee's non-compliance with notices during the assessment proceedings, leading to an ex parte order by the Assessing Officer under section 144 of the Income Tax Act. The assessee contested the disallowance of certain entries in the profit and loss account, which were initially disallowed due to non-compliance. The CIT(A) upheld the Assessing Officer's decision, leading to the current appeal. The Tribunal found that the CIT(A) had not considered the assessee's submission, which warranted a remand for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 28761 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 144; 142(1); 143(2); 250

Judgement Text

" आयकर अपीलȣय अͬधकरण, कोलकाता पीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH KOLKATA Before Shri Sonjoy Sarma, Judicial Member and Shri Rakesh Mishra, Accountant Member I.T.A. No.2579/Kol/2024 Assessment Year: 2006-07 Universal Enterprises……... .……………………………………..….……….Appellant 1st Floor, 7, Rabindra Sarani, Kolkata -1. [PAN: AAAFU8003H] vs. DCIT, Circle-36, Kolkata...……..............................……........……...…..…..Respondent Appearances by: Shri Gautam Bose, Staff, appeared on behalf of the assessee. Shri Sailen Samadder, Addl. CIT- Sr. DR, appeared on behalf of the Revenue. Date of concluding the hearing : February 27, 2025 Date of pronouncing the order : February 28, 2025 ORDER Per Sonjoy Sarma, Judicial Member: The present appeal has been preferred by the assessee against an order dated 25.11.2024 of the Commissioner of Income Tax (Appeal)-12, Delhi [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. Brief facts of the case are that the assessee filed its return of income on 31.10.2006 declaring total income of Rs.8,97,815/-. The case of the assessee was selected for scrutiny under CASS followed by notice issued u/s 143(2) and 142(1) of the Act but the notices were could not serve personally to the assessee. Therefore, the Assessing Officer served notices through affixation. Due to non-compliance on the part of the assessee, the Assessing Officer passed the assessment order u/s 144 of the Act by disallowing future commodities speculation debited in P&L I.T.A. No.2579/Kol/2024 Assessment Year: 2006-07 Universal Enterprises 2 A/c at Rs.1,12,411/-, sundry balance written off debited in P&L A/c at Rs.10,99,558/-. 3. Dissatisfied with the above order, the assessee preferred an appeal before the ld. CIT(A) against the assessment order. However, before the ld. CIT(A) also, the assessee has failed to turn up. The ld. CIT(A) pleased to uphold the order of the Assessing Officer by dismissing the appeal of the assessee. 4. Aggrieved by the said order, the assessee filed the present appeal before this Tribunal raising various grounds. However, the primary contention of the ld. AR is that the appellate order of the ld. CIT(A) was an ex parte order and in this regard, the assessee has made its submission on 17.08.2023 but the ld. CIT(A) did not consider the same. Since the assessee has never received any communication regarding the issuance of notices from the end of ld. CIT(A), therefore, the ld. AR prayed that the assessee may be given an opportunity by remanding the matter to the file of the ld. CIT(A). 5. The ld. DR stated that consecutive notices were served upon the assessee and the assessee did not turn up therefore the appeal of the assessee was correctly dismissed by the ld. CIT(A). 6. We, after hearing both the parties and perusing the materials available on record, find that since the impugned order of the ld. CIT(A) was passed ex parte without considering the submission dated 17.08.2023 made by the assessee, therefore, in the interests of justice and fair play, we deem it necessary to remand the whole issue back to the file of the ld. CIT(A) for re-examination after providing reasonable opportunity of being heard to the assessee. The assessee is also directed I.T.A. No.2579/Kol/2024 Assessment Year: 2006-07 Universal Enterprises 3 to comply with notices issued during the remand proceedings without any fail. 7. In terms of the above, the appeal of the assessee is allowed for statistical purposes. Kolkata, the 28th February, 2025. Sd/- Sd/- [Rakesh Mishra] [Sonjoy Sarma] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 28.02.2025. RS Copy of the order forwarded to: 1. Universal Enterprises 2. DCIT, Circle-36, Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches "