PADMAVATI ABASAN PVT. LTD,KOLKATA vs. DCIT-CC-4(3), KOLKATA

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ITSSA 84/KOL/2023Status: DisposedITAT Kolkata03 August 2023AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the assessee's ground regarding the ex-parte order passed by the Ld. CIT(A) had merit. Upon perusal of the impugned order, the Tribunal observed that the CIT(A) had merely reproduced the grounds of appeal and the decision part reiterated the assessment order. The Tribunal noted that the assessee could not file necessary details and submissions during the hearing before the CIT(A) and the AO. Consequently, the Tribunal restored the matter to the file of the Ld. AO for de novo adjudication in accordance with law. The AO was directed to consider the submissions of the assessee and provide a reasonable opportunity of being heard. The assessee was also directed to be vigilant, file necessary documents, and avoid seeking further adjournments unless for a reasonable cause. If, after sufficient opportunity, there is no compliance from the assessee, the AO can proceed to pass an order in accordance with law. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Padmavati Abasan Pvt. Ltd., filed an appeal before the Income Tax Appellate Tribunal (ITAT) Kolkata Bench against the order of the Ld. CIT(A)-21, Kolkata, dated 16.03.2023. This order arose from an assessment order passed under Section 153C/143(3) of the Income Tax Act, 1961, dated 29.12.2017, for the assessment year 2012-13. The assessee's appeal to the ITAT was filed with a delay of 1 day, which was condoned by the Tribunal. The primary contention of the assessee was that the CIT(A) had passed an ex-parte order without dealing with the merits of the case and without providing an opportunity to file submissions.

What were the issues?

1. Whether the Ld. CIT(A) erred in passing an ex-parte order without providing the assessee with an adequate opportunity to present its case and submissions, thereby failing to adjudicate the appeal on merits, as per the grounds of appeal raised by the assessee. Assessee's Contention: The assessee argued that the Ld. CIT(A)'s order was ex-parte, merely reiterating the assessment order without addressing the merits. The assessee claimed it did not receive an opportunity to file its submissions and relevant details before the CIT(A), and therefore, the appeal was not heard on merits. The assessee prayed for the grounds raised in its appeal to be restored to the Ld. AO for fresh adjudication after providing a reasonable opportunity of being heard. Revenue's Contention: The Ld. DR did not oppose the assessee's request.

Which sections of the Income-tax Act were involved?

Section 153C,Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: Shri Rajesh Kumar & Shri Sonjoy Sarma]

Hearing: 02.08.2023Pronounced: 03.08.2023

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH ‘C’, KOLKATA [Before Shri Rajesh Kumar, Accountant Member & Shri Sonjoy Sarma, Judicial Member] IT(SS)A. No. 84/Kol/2023 Assessment Year : 2012-13 Padmavati Abasan Pvt. Ltd. Vs DCIT, CC-4(3), Kolkata . PAN: AAECP 4824 E Appellant Respondent Date of Hearing 02.08.2023 Date of Pronouncement 03.08.2023 For the Assessee Shri Sagar Jain, FCA & Shri Ayush Jain, FCA For the Revenue Shri Sunil Kr. Agarwala, CIT, DR ORDER Per Sonjoy Sarma, JM: This is an appeal filed by the assessee pertaining to the assessment year (in short ‘A.Y.’) 2012-13 is directed against the order of Ld. CIT(A)-21, Kolkata dated 16.03.2023 which is arising out of the assessment order passed u/s 153C/143(3) of the Income Tax Act, 1961(in short ‘the Act’) dated 29.12.2017.

2.

At the outset, we find that there is a delay of 1 day in filing of the appeal by the assessee. We after perusing the petition for condonation are convinced that the assessee was prevented by sufficient cause from filing the appeal in time and hence delay is condoned and appeal is admitted.

3.

At the outset, ld. Counsel for the assessee submitted that the order of the ld. CIT(A) is an ex-parte order and nothing has been dealt on merits except reiterating assessment order on the disallowances/additions made by the ld. AO. The assessee could

2 IT(SS)A No. 84/Kol/2023 AY: 2012-13 Padmavati Abasan Pvt. Ltd. not get any opportunity to file its submissions and other relevant details before the authority below. Since the appeal of the assessee was not heard on merits of the case. Thus, the assessee referring to grounds of appeal, it has prayed that grounds raised in the instant appeal may be restored to the ld. AO for adjudicating afresh after providing reasonable opportunity of being heard.

4.

Per contra, ld. DR was fair enough not to oppose this request of the ld. counsel for the assessee.

5.

We have heard the rival contentions and perused the records placed before us. Through grounds, the assessee has stated that ld. CIT(A) failed to appreciate the materials on record and passed the order ex-parte. On perusal of the impugned order, we noticed that the instant ground raised by the assessee has merit as in the impugned order, ld. CIT(A) merely reproduced grounds of appeal raised by the assessee and the decision part, finding has been given only reiterating the assessment order passed by the ld. AO, as the assessee in the instant case could not able to file necessary details as well as submissions at the time of hearing before the ld. CIT(A) and before the ld. AO. Under these given facts and circumstances, we restore the matter in the instant appeals to the file of ld. AO for de novo adjudicating in accordance with law after considering the submission made by the assessee after giving reasonable opportunity of being heard. The assessee is salso directed to remain vigilant and file

3 IT(SS)A No. 84/Kol/2023 AY: 2012-13 Padmavati Abasan Pvt. Ltd. necessary documents in support of its grounds of appeal and should not take any further adjournment, unless otherwise required for reasonable cause. In case after providing sufficient opportunity to the assessee, there is no compliance before the ld. AO, then the ld. AO can proceed to pass the order in accordance with law.

6.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 03.08.2023. Sd/- Sd/-

(Rajesh Kumar) (Sonjoy Sarma) Accountant Member Judicial Member Dated: 03.08.2023 Biswajit, Sr. PS Copy of the order forwarded to: 1. Appellant- Padmavati Abasan Pvt. Ltd., BJ-311, Sector-II, Sech Bhawan, Salt Lake City, Kolkata-700091. 2. Respondent – DCIT, CC-4(3), Kolkata. 3. Ld. CIT 4. Ld. CIT(A) 5. Ld. DR

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