ATAL TEA CO. (1943) LTD.,,KOLKATA vs. ITO, WARD 1(1),, KOLKATA

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ITA 573/KOL/2026Status: DisposedITAT Kolkata19 June 2026AY 2011-20123 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal found that both lower authorities passed ex-parte orders and the CIT(A) did not decide all grounds of appeal on merits. Therefore, in the interest of justice, the issue was restored to the Assessing Officer for de-novo adjudication.

What were the facts?

The assessee's appeal against an order treating it as an assessee in default for non-deduction of TDS was dismissed by the CIT(A). Both the Assessing Officer's and CIT(A)'s orders were ex-parte, with the assessee not participating in the proceedings.

What were the issues?

Whether the ex-parte orders passed by the lower authorities violated principles of natural justice and whether the CIT(A) properly adjudicated all grounds of appeal.

Which sections of the Income-tax Act were involved?

Section 201(1A),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH,

Before: SHRI YOGESH KUMAR U.S. & SHRI RAKESH MISHRA

For Appellant: Shri Miraj D. Shah, AR
For Respondent: Shri Sallong Yaden, Addl. CIT
Hearing: 17.06.2026Pronounced: 19.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER

ITA No.573/KOL/2026 Assessment Year: 2011-12

Atal Tea Co. (1943) Limited Vs. ITO, Ward-1(1), Kolkata C/o Subash Agarwal & Associates, Siddha Gibson, Suite 213, 2nd Floor, Kolkata-700069 [PAN: AACCA3219N] APPELLANT RESPONDENT

Appellant by : Shri Miraj D. Shah, AR Respondent by : Shri Sallong Yaden, Addl. CIT

Date of hearing : 17.06.2026 Date of Pronouncement : 19.06.2026 O R D E R PER YOGESH KUMAR U.S., JUDICIAL MEMBER This Appeal is filed by the Assessee against the order of the NFAC, Delhi (Appeal) [“the Ld. CIT(A)”, for short], dated 15.12.2025 passed u/s 250 of the Income Tax Act, 1961 (“the Act”, for short) for the assessment year 2011-12. 2. Brief facts of the case are that, an Order came to be passed u/s 201(1A) of the Act on 28.03.2018 by treating the Appellant herein as Assessee in default for non-deduction of TDS by computing the TDS default and interest thereon at Rs.12,57,373/-. Aggrieved by the Order

ITA No.573/Kol/2026 Atal Tea Co.(1943) Ltd.; A.Y: 2011-12 dated 28.03.2018, Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 15.12.2025, dismissed the Appeal filed by the Assessee. As against the Order of the Ld. CIT(A) dated 15.12.2025, Assessee filed the present Appeal. 3. The Ld. Counsel for the Assessee submitted that both the order of the Assessing Officer as well as Ld. CIT(A) are ex-parte and the Ld. CIT(A) has not decided on the grounds of the Appeal of the Assessee and the order impugned came to be passed in violation of principals of natural justice. Thus, sought for allowing the Appeal.

4.

Per contra, the Ld. DR submitted that the Assessee is a chronic defaulter who has not appeared before the Lower Authorities, therefore, both the Assessing Officer as well as the Ld. CIT(A) have passed the respective orders in accordance with law whichrequires no interference, thus by relying on the orders of the Lower Authorities sought for dismissal of the Appeal.

5.

We have heard both the parties and perused the material available on record. Both the order of the Assessing Officer as well as order of the Ld. CIT(A) are ex-parte, wherein the Assessee has not participated in any of the proceedings. Even the Ld. CIT(A) has not decided all the grounds of Appeal on its merits. In view of the above, in the interest of justice, we deem it fit to restore the issue to the file of the Assessing Officer for de-novo adjudication. Needless to say, the Page | 2

ITA No.573/Kol/2026 Atal Tea Co.(1943) Ltd.; A.Y: 2011-12 Assessing Officer shall provide opportunity of being heard to the Assessee before passing the order in accordance with law. The Assessee is also at liberty to produce all the documents in support of his claim and shall participate in the assessment proceedings without fail.

6.

In the result, Appeal of the Assessee is partly allowed for statistical purposes.

Order pronounced on 19.06.2026. Sd/- Sd/- (RAKESH MISHRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 19.06.2026 DP, PS Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //TRUE COPY//

ASSISTANT REGISTRAR KOLKATA BENCHES, KOLKATA

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