CHOWDHURY ENTERPRISES PVT. LTD.,,DURGAPUR vs. ITO, CIRCLE - 1, DURGAPUR,, DURGAPUR

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ITA 1584/KOL/2026Status: DisposedITAT Kolkata30 October 2026AY 2020-20215 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the Assessing Officer had passed the assessment order due to the assessee's failure to submit documentary evidence. Furthermore, the CIT(A) had dismissed the appeal in limine solely on the point of limitation, without delving into the merits of the case. In the interest of justice, the Tribunal found it imperative to grant the assessee an opportunity to present its case before the Assessing Officer. Consequently, the orders passed by the lower authorities were set aside. The delay in filing the appeal before the CIT(A) was condoned, and the appeal was restored to the file of the AO with a direction to pass a fresh order after affording the assessee an opportunity of being heard. The assessee was directed to cooperate in the remand proceedings. For ITA No. 1585/2026, which related to the penalty arising from the assessment order, the Tribunal also remitted the matter back to the AO with a direction to pass an order after the fresh assessment order is passed. Both appeals were allowed for statistical purposes.

What were the facts?

The assessee, Chowdhury Enterprises Private Limited, filed appeals against orders dated 09.02.2026 and 13.02.2026 passed by the National Faceless Appeal Centre (NFAC), Delhi. These orders pertained to Assessment Year 2020-21. ITA No. 1584/2026 challenged the order passed under Section 147, and ITA No. 1585/2026 challenged the order passed under Section 271B. The Assessing Officer (AO) had passed the assessment order when the assessee failed to submit details of TDS compliance, bills, accounts, and supporting evidence. The Commissioner (Appeals) dismissed the assessee's appeal on the grounds of limitation, noting a delay of 27 days in filing the appeal.

What were the issues?

1. Whether the Tribunal should condone the delay of 27 days in filing the appeal before the CIT(A) and restore the appeal to the file of the AO for a fresh adjudication, considering the interest of justice and the assessee's failure to submit documents before the AO. (Mixed question of law and fact, concerning principles of natural justice and procedural fairness). Assessee's Contention: The assessee's Learned Authorized Representative (AR) argued that the appeal should be remitted back to the AO for a fresh order after hearing the assessee. The AR submitted that for the interest of justice, the assessee should be given an opportunity to present its case before the AO, especially since the CIT(A) dismissed the appeal on limitation. The prayer was to condone the delay and restore the appeal to the AO. Revenue's Contention: The Learned Departmental Representative (DR) did not raise any objection to restoring the assessee's appeal.

Which sections of the Income-tax Act were involved?

Section 147,Section 271B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, KOLKATA

Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA

Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No 1584 & 1585 /KOL/2026 Assessment Year- 2020-21 Chowdhury Enterprises Private Limited................................................................Appellant RD-21, Collins Path, Sector-2B, Bidhannagar, Durgapur West Bengal- 713212 [PAN No. AABCC8582D]

Vs. Income Tax Officer........................................................,..……………....……….Respondent Circle 1, Durgapur West Bengal- 734101 Appearances by: Somnath Roy Chowdhury, (Adv.), appeared on behalf of the Appellant. Sanjay Jha, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing: September 29, 2026 Date of pronouncing the order: October 30 ,2026 ORDER Per Pradip Kumar Choubey, Judicial Member:

This appeal filed by the assessee is directed against the order dated 09.02.2026 and 13.02.2026 of the Office of the National Faceless Appeal Centre (NFAC), Delhi passed under Section 147 and 271B of the Assessment Year 2020-21 of the Income-Tax Act, 1961 (hereinafter referred to as “the Act”). 2. ITA 1584/2026 relates to the order passed u/s 147/14B of the Act whereas ITA 1585/2026 relates to the order passed u/s 271B for the same assessment year i.e. 2022-21. Since in both the appeal issues are common and

ITA No.1584& 1585/Kol/2026 hence taken up together for disposal by taking 1584/2026 is a lead case as it relates to the quantum. 3. The Ld. AR instead of arguing into the merit of the case has only prayed that appeal of the assessee be remitted back to the file of the AO with a direction to pass a order afresh after hearing the assessee. The Ld. AR submits that order passed by the Assessing Officer when assessee fails to submit the documents hence for the interest of justice assessee has to give an opportunity to place his case before the Assessing Officers. The Ld. AR further submits that CIT(A) has dismissed the appeal on the point of limitation as there was delay of 27 days. The prayer of the AR is that by condoning the delay appeal of the assessee be restored to the file of the assessing officers. Contrary to that Ld. DR did not raise any objection in restoring the appeal of the assessee. 4. Upon hearing the submission of the counsel of the respective parties and on perusal of the impugned order of the lower authorities, we find that Assessing Officers has passed the assessment order when assessee did not upload the details of TDS compliance, copy of the bills, copy of the accounts of the parties and supporting evidences. We further find that CIT(A) has dismissed the appeal in limine without discussing into the merit of the case, as there was a delay of 27 days in filing the appeal. Since the order passed by the Assessing Officers when assessee failed to submit documentary evidences, CIT(A) has dismissed the appeal on the point of limitation, interest of justice demands to give an opportunity to assessee to place his case before the Assessing Officers. Accordingly, the order passed by the lower authorities are hereby set aside. Delay as occurred in the CIT(A) are hereby condoned and appeal of the assessee be restored to the file of the AO with a direction to pass afresh order 2

ITA No.1584& 1585/Kol/2026 after affording an opportunity to assessee. Assessee is directed to cooperate in the remand proceedings. ITA No. 1585/2026 5. It relates to the penalty arising out from the assessment order passed u/s 147/144B (ITA No. 16\584(2026), and Tribunal has already set aside the order and restore to the file of the AO to pass a fresh order so present appeal bearing NO. 1585/2026 also remit back to the file of the AO with a direction to pass order after passing a fresh assessment order. Accordingly, both the appeals of the assessee are allowed for statistical purposes. Kolkata, the 30th October, 2026.

Sd/- Sd/- [Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member

DC Dated: 30. 10.2026.

ITA No.1584& 1585/Kol/2026 Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- 5. CIT(DR)

//True copy// By order Digitally signed by MANISH MANISH KUMAR BHOI KUMAR BHOI Date: 2026.11.02 11:51:29 +05'30'

ITA No.1584& 1585/Kol/2026

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