NCBA EXPORTS PVT. LTD.,KOLKATA vs. I.T.O., WARD - 11(2), KOLKATA, KOLKATA
What did the Tribunal hold?
The Tribunal set aside the ex-parte order of the CIT(A) and restored the issue for fresh adjudication. The assessee is to be granted a reasonable opportunity of being heard and to make necessary submissions.
What were the facts?
The assessee's appeal was dismissed ex-parte by the CIT(A) for non-appearance. The assessee contended that the CIT(A) erred in confirming the addition of Rs. 4,03,349/- on account of reduced net profit and rejecting books of accounts without proper opportunity.
What were the issues?
Whether the CIT(A) was justified in passing an ex-parte order and confirming additions without providing a proper opportunity of being heard to the assessee.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Dr. Manish Borad & Shri Sonjoy Sarma
Per Dr. Manish Borad, Accountant Member:- This appeal at the instance of assessee for assessment year 2017-18 is directed against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 31.01.2023, which is arising out of the order under section 143(3) of 1 Assessment Year: 2017-2018 NCBA Exports Pvt. Limited the Act dated 26.12.2019 framed by the ITO, Ward-11(2), Kolkata. 2. The grounds of appeal raised by the assessee read as under:-
(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 without providing proper opportunity of (2) For that on the facts and in the circumstances of the case, the Ld. CIT(A) grossly erred in confirming the addition of Rs.4,03,349/- made by the A.O. on account of alleged reduction in net profit inspite of substantial decreased turnover by invoking the provisions of sec. 145(3) of the Act. (3) For that on the facts and in the circumstances of the case, the Ld. C1T(A) grossly erred in confirming the action of the A.O. in rejecting the books of accounts u/s 145(3) and estimating the net profit as per best judgment. (4) For that on the facts and in the circumstances of the case, the Ld. CIT(A) grossly erred in confirming the action of the A.O in applying the net profit rate @ 1.09%. (5) For that on the facts and in the circumstances of the case, the Ld. CIT(A) ought to have considered that without pointing out any specific defect, books of accounts cannot be rejected merely on the ground of reduction of profit.
We have heard the rival contentions and perused the relevant material placed on record. We note that in the peculiar set of facts in the present case before us, relevant documentary evidences are placed on record. However, detailed enquiry to examine the book results declared by the assessee-company has not been undertaken both at the assessment level and at the 1st Appellate stage. Further ld. Counsel has pleaded to set Assessment Year: 2017-2018 NCBA Exports Pvt. Limited aside the matter, wherein assessee will make all the necessary submissions for its claim.
We find that the ld. 1st Appellate Authority has dismissed the appeal of the assessee for want of prosecution as assessee failed to appear on the date of hearings. Considering the prayer of the ld. Counsel for the assessee and in the interest of justice and fair to both the parties, we set aside the impugned order of ld. CIT(Appeals) and restore the issues to the file of ld. CIT(Appeals) for fresh adjudication on due consideration of submission to be filed by assessee for which reasonable opportunity of being heard should be granted.
In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on 14th June, 2023. Sd/- Sd/- (Sonjoy Sarma) (Manish Borad) Judicial Member Accountant Member Kolkata, the 14th day of June, 2023 Copies to :(1) NCBA Exports Pvt. Limtied, C/o. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite-213, 2nd Floor, Kolkata-700069 (2) Income Tax Officer, Ward-11(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) CIT(Appeals), National Faceless Appeal Centre (NFAC), Delhi; 3
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