M/S. VCK INVESTMENT PVT. LTD.,KOLKATA vs. I.T.O., WARD - 5(4), KOLKATA, KOLKATA

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ITA 754/KOL/2022Status: DisposedITAT Kolkata28 February 2023AY 2012-20134 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) failed to adhere to the mandate of Section 250(6) by not recording specific reasons for his conclusions. The impugned order was set aside.

What were the facts?

The assessee appealed against the CIT(A)'s order for AY 2012-13. The assessee argued that the CIT(A) passed an ex-parte order without specific findings on any issue.

What were the issues?

Whether the CIT(A) properly adjudicated the appeal by providing specific findings and reasons for his decision as required by law.

Which sections of the Income-tax Act were involved?

Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A(SMC

Before: Shri Rajpal Yadav, Vice-(KZ) & Dr. Manish Borad

Per Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals)- 16, Kolkata dated 28.02.2020 passed for assessment year 2012- 13.

Assessment Year: 2012-2013 M/s. VCK Investment Pvt. Limited

2.

The ld. Counsel for the assessee, at the very outset, submitted that the ld. 1st Appellate Authority has not recorded any specific finding on any of the issues agitated before him. It is an ex-parte order.

3.

On the other hand, ld. D.R. was unable to controvert the submissions made by the ld. Counsel for the assessee.

4.

With the assistance of ld. Representatives, we have gone through the record carefully. Sub-section 6 of section 250 mandates the ld. CIT(Appeals) to determine the points in dispute and thereafter record the reason in support of his conclusion on those points. A perusal of the impugned order would suggest that the ld. 1st Appellate Authority failed to adhere the mandate given in Section 250(6) of the Income Tax Act. In order to buttress our conclusion, we deem it appropriate to take note the finding of ld. CIT(Appeals) recorded in paragraph no. 3, which reads as under:- “3. As per material available on record and submissions made by the appellant and on merit, the addition made by the ld. AO on account of disallowance on interest income u/s 14A of Rs.7,70,325/- on account of disallowance of unexplained cash credit u/s 68 of Rs.25,00,000/- and disallowance of interest of Rs.1,51,479/- is hereby confirmed. Accordingly all grounds of appeal

are dismissed”. Assessment Year: 2012-2013 M/s. VCK Investment Pvt. Limited

1.

5. It is pertinent to observe that the ld. 1st Appellate Authority has simply reproduced the grounds in appeal and thereafter recorded the above finding. Therefore, we are of the view that the impugned order of ld. CIT(Appeals) is not sustainable and we set aside the order and remit the issues to the file of ld. CIT(Appeals) for fresh adjudication. At this stage, ld. Counsel for the assessee submitted that now all the appeals are to be decided by National Faceless Appellate Authority and it is not ascertainable how the appeal will be entertained and how to carry out the execution of the order of the Tribunal. Shri S.M. Surana, ld. Sr. Counsel submitted on behalf of the Bar that now a Special Authority, namely Principal Chief Commissioner of Income Tax, National Faceless Appeal Centre (NFAC) has been designated as Special Authority for taking up all these proceedings. Therefore, Registry is directed to remit one additional copy of this order to above authority i.e. Principal Chief Commissioner of Income Tax, National Faceless Appeal Centre (NFAC) so that the appeal of the assessee is to be re-adjudicated at the level of ld. CIT(Appeals).

6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 28th February, 2023. Sd/- Sd/- (Manish Borad) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 28th day of February, 2023 3 Assessment Year: 2012-2013 M/s. VCK Investment Pvt. Limited (1) M/s. VCK Investment Pvt. Limited, Copies to : C/o. M/s. Salarpuria Jajodia & Co., 7, C.R. Avenue, 3rd Floor, Kolkata-700072

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