KAMLAWATI CHOWHAN,HOWRAH vs. ITO, WARD 46(1),, KOLKATA

The present appeal is filed against the order u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”), dated 10.03.2025, passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereafter “the Ld. CIT(A)].

The assessee filed its return of income for the assessment year 2018– 19 declaring total income of ₹ 5,48,560/-. Based on information received from the Investigation Wing that the assessee had allegedly taken accommodation entries in the group of bogus purchases amounting to ₹ 20,06,616/-, the Assessing Officer initiated proceedings under Section 148A(b) of the Act .As there was no compliance by the assessee to the show cause notice issued under Section 148A(b), an order under Section 148A(d) was passed and notice under Section 148 of the Act was issued thereafter. In response, the assessee filed its return of income declaring the same total Kamlawati Chowhan income of ₹ 5,48,560/-. Subsequently, notices under Sections 143(2) and 142(1) of the Act were issued. The Assessing Officer also issued summons under Section 131 to the alleged suppliers from whom the assessee had purportedly purchased goods. On the basis of information gathered, the Assessing Officer made an addition of ₹ 1,67,67,679/- treating the same as unexplained expenditure under Section 69C of the Act and completed the assessment accordingly.

Aggrieved, the assessee preferred an appeal before the CIT(A). However, due to non-compliance on consecutive dates, the CIT(A) dismissed the appeal ex parte. The assessee has now preferred the present appeal before the Tribunal, contending that the authorities below passed the orders without affording a reasonable opportunity to substantiate its claim with supporting evidence. The assessee, therefore, prayed that one more opportunity may be granted to substantiate its case before the Assessing Officer.

The learned Departmental Representative did not raise any serious objection to the plea of the assessee but submitted that the assessee had earlier failed to substantiate its claim despite several opportunities. However, he fairly submitted that in the interest of justice, one more opportunity may be granted to the assessee to substantiate its case.

We, after hearing the rival submissions and considering the material on record, we are of the view that, in the interest of justice and fair play, it would be appropriate to restore the matter to the file of the Assessing Officer with a direction to examine the issue afresh after providing due opportunity to the assessee to substantiate its claim. The assessee is also directed to extend full cooperation and produce all relevant evidence in support of its claim.

Accordingly, the appeal of the assessee is allowed for statistical purposes.