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Facts
The Assessing Officer framed an assessment under Section 144 for AY 2013-14, adding Rs. 25,45,705/- (10% of sundry creditors) due to lack of details and Rs. 2,160/- under Section 14A read with Rule 8D. The CIT(A) dismissed the appeal, finding that the assessee failed to submit required documentation to substantiate its claim.
Held
The Tribunal found that both the AO and CIT(A) might not have provided sufficient opportunity to the assessee. To ensure justice, the matter is restored to the file of the AO for fresh adjudication, with a direction to provide reasonable opportunity to the assessee, who is also cautioned to cooperate.
Key Issues
Whether sufficient opportunity was provided to the assessee to present documentation for its claims, and whether the additions made under Section 144 and 14A read with Rule 8D were just and proper without adequate documentation.
Sections Cited
144, 14A, 8D
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, KOLKATA
आदेश / O R D E R The present appeal is directed at the instance of assessee against the order of ld. Addl./JCIT(A)-1, Vadodara, dated 20.01.2025 passed for Assessment Year 2013-14. 2. In this appeal, the Assessing Officer framed the assessment u/s.144 of the Act assessing total income of the assessee at Rs.22,03,220/- derived from trading and investment business. The Assessing Officer further found that the liability shown by the assessee is not genuine and accordingly estimated 10% of the total declared sundry creditors in the balance sheet of the assessee which comes to Rs.25,45,705/- and added the same to the total income of the assessee due to absence of any details and necessary compliance on the part of the assessee. The Assessing Officer also added Rs.2160/- invoking provisions of Section 14A r.w.Rule 8D. In the appellate proceedings, the assessee filed the statement of facts and raised the 2 ITANo.484/KOL/2025 several grounds along with the ground that sufficient opportunity has not been provided by the Assessing Officer before passing the assessment order. The ld.CIT(A) dismissed the appeal of the assessee holding therein that the assessee was unable to submit any required documentation to substantiate its claim. Now, the assessee is in further appeal before the Tribunal.
Ld. Counsel for the assessee submitted that due to certain unavoidable circumstances, the assessee or the representative of the assessee could not pursue the matter during the course of assessment proceedings whereby the Assessing Officer without affording the sufficient opportunity passed the assessment and the ld. CIT(A) also thumbed to it. Ld. Counsel further submitted that if one more opportunity be given, the assessee would be able to provided all the required documents in regard to its claim before the Assessing Officer.
On the other hand, ld. Sr. DR vehemently supported the orders of both the authorities below and submitted that the assessee completely failed to submit the details as required for either before the Assessing Officer or before the ld. CIT(A). Thus, the ld. Sr.DR prayed for upholding the orders of the lower authorities.
After hearing the submission of the parties and perusing the material available on record, I find that the Assessing Officer has passed the assessment u/s.144 of the Act on account of the fact that the assessee could not make compliance to the notice issued during the course of assessment proceedings. Though the assessee has agitated that the 3 ITANo.484/KOL/2025 Assessing Officer has not provided sufficient opportunity to prove its case by submitting required documents in regard to its claim, however, the ld. CIT(A) without asking any remand report or providing any opportunity to the Assessing Officer, and not examined the documents filed by the assessee but only affirmed the view taken by the Assessing Officer. In view of the above and I, therefore, feel it necessary and in the larger interest of justice and being fair to both the parties, deem it appropriate to restore the issue to the file of the ld. AO for necessary adjudication for which reasonable opportunity to be provided to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the ld. AO, failing which the ld. AO shall be at liberty to pass appropriate order in accordance with law and merits based on the materials available on record. Thus, the grounds raised
by the assessee are allowed for statistical purposes.
6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 24/06/2025. Sd/- (DUVVURU RL REDDY) उपाध्यक्ष / VICE PRESIDENT कोलकाता Kolkata; दिनाांक Dated 24/06/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant- प्रत्यर्थी / The Respondent- 2. आयकर आयुक्त(अपील) / The CIT(A), 3. 4. आयकर आयुक्त / CIT 5. ववभागीय प्रतततनधि, आयकर अपीलीय अधिकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file.
4 ITANo.484/KOL/2025