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Facts
The assessee's income tax return was processed, and later, the case was selected for scrutiny concerning large share premium. Subsequently, during revisionary proceedings under Section 263, the assessment was completed ex-parte under Section 143(3) due to non-compliance, leading to disallowance of share loss and addition of unexplained cash credit under Section 68. The CIT(A) also dismissed the appeal ex-parte.
Held
The Tribunal, noting the ex-parte nature of both lower authorities' orders and in the interest of justice, decided to remit the matter back to the Assessing Officer. The AO is directed to pass a fresh assessment order after providing the assessee an opportunity of being heard and considering all submitted documents.
Key Issues
The key issue was the validity of ex-parte assessment and appellate orders, and whether the additions made by the Assessing Officer required a fresh consideration after providing the assessee a proper hearing and reviewing supporting documents.
Sections Cited
143(1), 14A, 263, 143(3), 142(1), 68, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH: KOLKATA
ORDER / आदेश Per Pradip Kumar Choubey, JM:
This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeals), -NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 02.01.2024 for AY 2015-16.
Assessment Year: 2015-16 Brillant Vincom LLP (successor of Brillant Vincom Pvt. Ltd) 2. It appears from the report of the registry that the appeal has been filed after a delay of 316 days for this the assessee has filed condonation petition. On perusal of the condonation petition, the reason for delay in filing the appeal seems to be genuine and bonafide. The Ld. D.R did not raise any objection in condoning the delay. Keeping in view, the condonation petition as well as judicial pronouncement that the case should be decided on merit not on technical issue, the delay is hereby condoned.
Brief facts of the case of the assessee are that the assessee filed return of income declaring total income of Rs. -2,169/- return of income was processed u/s 143(1) and further the case was selected for scrutiny on the issue of large share premium received during the year. The assessment was completed by addition of Rs. 31,100/- u/s 14A determining the total income of Rs. 28,930/-. Further during the revisionary proceedings u/s 263 of the Act, it was observed that the issue of loss from sale of shares of Rs. 25,70,300/- . A show cause notice was sent to the assessee and order passed u/s 143(3) for AY 2015-15 has been held to be erroneous as it is prejudicial to the interest of the revenue. The assessee has been noticed with a direction to appear and explain the above case lacuna in the said order with supporting documentary evidences but neither the assessee nor any AR of the assessee appeared. Since the assessee in spite of getting several opportunities did not submit anything opposing to the initiation to the proceedings u/s 263 of the Act discrepancy pointed out has been explained. The assessee has further given an opportunity by issuing notice u/s 142(1) to submit details but there was no response, as a result of which assessment was completed on the material available on record u/s 143(3) read with Section 263 of the Act and loss of Rs. 25,70,300/- from sale of shares is disallowed and added to the total income of the assessee. Further an amount of Rs. 4,08,75,800/- has also been treated as unexplained cash credit u/s 68 of the Act.
Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed as there was no response from the side of the assessee.
Being aggrieved and dissatisfied the assessee preferred an appeal before us.
Assessment Year: 2015-16 Brillant Vincom LLP (successor of Brillant Vincom Pvt. Ltd) 5. The Ld. A.R instead of arguing into the merit of the case has only prayed that the matter be remitted back to the file of AO for fresh consideration as the order passed by the AO confirmed by the Ld. CIT(A) are an ex-parte order. The Ld. A.R has submitted balance sheet with the paper book and prayed that the balance sheet should be verified by the AO that will establish the case of the assessee so the appeal of the assessee be remitted back to the file of AO for fresh consideration.
The Ld. D.R though supports the impugned order but did not raise any objection in remitting the appeal back to the file of AO as the order passed by the AO u/s 144 of the Act.
Upon hearing the submission of the counsel of the respective parties, we have perused the order of AO and we find that assessment was completed in pursuant to the order passed u/s 263 of the Act when there was no compliance on behalf of the assessee. Before the Ld. CIT(A) also there was no response. The Ld. A.R brought balance sheet, profit and loss account and other documentary evidences before us.
Going over the submission made by the assessee and order passed by the lower authorities, for the interest of justice, we are inclined to remit the appeal back to the file of AO with a direction to pass afresh assessment order after hearing the assessee and going over the documents filed by the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 22nd July, 2025