BHASKAR TEA AND INDUSTRIES PVT.LTD. ,KOLKATA vs. ACIT, C.C-1(1). , KOLKATA

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ITSSA 149/KOL/2023Status: DisposedITAT Kolkata27 February 2024AY 2011-124 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, after hearing both parties and considering the available material, found it necessary to determine the correct income of the assessee. For Ground 1, concerning the addition of Rs. 20,83,818/- on account of donation, the Tribunal directed the AO to revisit the issue by providing a reasonable opportunity of being heard to the assessee and to examine the issue afresh in accordance with the law. For Ground 2, regarding the non-consideration of carry forward business losses of Rs. 69,14,516/-, the Tribunal found it necessary to remand the issue back to the AO. The AO was directed to give the assessee a necessary opportunity of being heard and to reconsider the issue in accordance with law. The appeal was allowed for statistical purposes.

What were the facts?

The appeal by Bhaskar Tea And Industries Private Limited (the assessee) is against the order of the CIT(A), Kolkata-20, dated July 11, 2023, for Assessment Year 2011-12. A search and seizure operation under section 132(1) was conducted at the assessee's premises, followed by a notice under section 153A. The assessee initially filed a return declaring Nil income. The Assessing Officer (AO) assessed the total income, and the CIT(A) partly allowed the assessee's appeal. The assessee is now before the Income Tax Appellate Tribunal (ITAT) with two grounds of appeal.

What were the issues?

1. Whether the addition of Rs. 20,83,818/- on account of donation to the assessee's income, confirmed by the CIT(A) without assigning any reason, is valid? 2. Whether the AO erred by not considering the carry forward business losses of Rs. 69,14,516/- from earlier assessment years while framing the assessment, an issue also not addressed by the CIT(A)? Assessee's Contentions: For Ground 1, the assessee argues that the addition made by the AO and confirmed by the CIT(A) in relation to the donation was done without any stated reason and is therefore incorrect. The assessee requests that this issue be remanded back to the AO for fresh examination after providing a reasonable opportunity of being heard. For Ground 2, the assessee contends that the AO failed to consider the company's brought forward business losses of Rs. 69,14,516/- from previous assessment years without providing any justification, and the CIT(A) also overlooked this fact. The assessee seeks a remand to the AO for reconsideration. Revenue's Contentions: The judgment records no specific contentions for the revenue on these grounds.

Which sections of the Income-tax Act were involved?

Section 132(1),Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH ‘B’, KOLKATA

Before: Dr. Manish Borad & Shri Sonjoy Sarma]

Hearing: 27.02.2024Pronounced: 27.02.2024

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH ‘B’, KOLKATA [Before Dr. Manish Borad, Accountant Member & Shri Sonjoy Sarma, Judicial Member] IT(SS)A. No. 149/Kol/2023 Assessment Year : 2011-12 Bhaskar Tea And Industries vs ACIT, Central Circle-1(1), Private Limited Kolkata PAN: AABCB 4084 F Appellant Respondent Date of Hearing 27.02.2024 Date of Pronouncement 27.02.2024 For the Assessee Shri P.K. Sanghai, AR For the Revenue Shri Abhijit Kundu, CIT, DR ORDER Per Sonjoy Sarma, JM: This appeal is filed by the assessee directed against the order passed by ld. CIT(A), Kolkata-20 dated 11.07.2023 relating to A.Y. 2011-12.

2.

Brief facts of the case are that a search & seizure operation u/s 132(1) was conducted in the business premises of the assessee followed by notice u/s 153A of the Act. In response to the notice, assessee filed its return of income declaring income at Nil. Subsequently, the ld. AO issued statutory notice upon the assessee and in response to the notice, the ld. AR of the assessee appeared time to time before him. The ld. AR of the assessee filed various documents in response to the notices in order to explain the return.

3.

After examining the various aspects of the case, the ld. AO assessed the total income of the assessee in the following manner:

2 IT(SS)A No. 149/Kol/2023 AY: 2011-12 Bhaskar Tea And Industries Private Limited

4.

Dissatisfied with the above order, assessee went into appeal before the ld. CIT(A) where the appeal of the assessee was partly allowed.

5.

Aggrieved by the order of ld. CIT(A) assessee is in appeal before the Tribunal raising two grounds of appeal.

3 IT(SS)A No. 149/Kol/2023 AY: 2011-12 Bhaskar Tea And Industries Private Limited 6. Ground no. 1 is relation to addition made by AO in connection with donation of Rs. 20,83,818/- to the income of the assessee without stating any reason behind such addition and the ld. CIT(A) also confirming the addition made by the AO which is not correct. Therefore, the instant issue may be remand back to the AO with the direction to re-examine the issue afresh after affording reasonable opportunity of being heard to the assessee.

7.

We after hearing the submission of both the parties and considering the material available on record find that it is necessary to determine the correct income of the assessee. We direct the AO to revisit the issue by providing reasonable opportunity of being heard to the assessee examine the issue afresh in accordance with law.

8.

Ground no. 2 while framing the assessment, the ld. AO did not consider the carry forward business losses of company from earlier assessment years amounting to Rs. 69,14,516/- without assigning any reason and ld. CIT(A) also did not look into the fact of the case while passing the impugned order. Therefore, the issue may be remand back to the file of AO with the direction to re-consider in accordance with law.

9.

We after hearing the rival submissions of the parties and perused the material available on record find it necessary to remand back the issue to the file of AO after giving necessary opportunity of being heard to the assessee in accordance with law. In terms of the above, the appeal of the assessee is allowed for statistical purposes.

4 IT(SS)A No. 149/Kol/2023 AY: 2011-12 Bhaskar Tea And Industries Private Limited 10. In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 27.02.2024 Sd/- Sd/-

(Dr. Manish Borad) (Sonjoy Sarma) Accountant Member Judicial Member Dated: 27.02.2024 Biswajit, Sr. PS Copy of the order forwarded to: 1. Appellant – Bhaskar Tea And Industries Private Limited, 6/2, Queens Park, Ballygung, Kolkata-700019. 2. Respondent – ACIT, Central Circle-1(1), Kolkata. 3. Ld. CIT 4. Ld. CIT(A) 5. Ld. DR

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