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Facts
For AY 2012-13, the AO made an addition of Rs. 1.09 Crore under Section 68 against the assessee. Though a previous CIT(A) order deleted this addition, the ITAT restored the matter to the AO for factual verification. The assessee's subsequent non-compliance led the AO to re-add the amount, and the CIT(A) dismissed the assessee's appeal due to this non-appearance.
Held
The Tribunal found that the assessee deserved an opportunity to present its case. It set aside the orders of the AO and CIT(A), remitting the matter back to the AO for fresh adjudication after affording the assessee a proper hearing and opportunity to submit all required documents.
Key Issues
Whether the assessee should be granted another opportunity to present their case before the Assessing Officer when the appeal was previously restored for factual verification but dismissed due to non-compliance.
Sections Cited
143(2), 142(1), 143(3), 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH: KOLKATA
Before: Shri Pradip Kumar Choubey&Shri Rakesh Mishra]
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 19.11.2024 for AY 2012-13.
Assessment Year: 2012-13 Pratibha Griha Nirman Pvt. Ltd. .
Brief facts of the case of the assessee are that for the AY 2012-13 the assessee filed its return of income declaring total income of Rs. 216/-. The case of the assessee was selected for scrutiny, notices u/s 143(2) and 142(1) were issued to the assessee company. The AO passed an order u/s 143(3) and by making an addition of Rs. 1,09,00,000/- u/s 68 of the Act, assessed total income at Rs. 1,09,00,220/-. Aggrieved with this order the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been allowed vide order dated 10.05.2016 by deleting the addition made u/s 68 of the Act. Against the said order of the Ld. CIT(A), revenue preferred an appeal before the ITAT. The Hon’ble ITAT vide order dated 14.11.2018 restored the appeal of the assessee before the AO for factual verification as per law after affording adequate opportunity of hearing to the tax payer. After remitting back to the file of the AO, a letter was issued to the assessee company but there was non compliance from the side of the assessee, as a result of which, the AO added an amount of Rs. 1,09,00,000/- in the income of the assessee 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 on the ground that the assessee did not appear before the AO when the matter has been restored to the file of AO for fresh adjudication nor the assessee made any compliance to produce the director of the investing company before the AO.
Being aggrieved and dissatisfied the assessee preferred an appeal before us.
The Ld. A.R instead of arguing into merit of the case has only prayed that the assessee may be given an opportunity to place its case before the AO as the assessment was done behind the back of the assessee. The Ld. Counsel further submits that the order of AO in which he added the amount, has earlier been set aside by the Ld. CIT(A) but after restoring the appeal to the file of AO, the assessee could not appear as he did not receive any notice. The prayer of the Ld. A.R is that for the interest of justice, the assessee has been given an opportunity to submit all the papers before the AO.
Assessment Year: 2012-13 Pratibha Griha Nirman Pvt. Ltd. . 5. Contrary to that the Ld. D.R supports the impugned order but did not raise any objection in restoring the appeal back to the file of AO for proper verification.
Upon hearing the submission of the ld. Counsel for the respective parties, we have perused the order passed by the AO and there is no dispute that after restoring the appeal of the assessee to the file of AO there was non-compliance on behalf of the assessee. The assessment order was passed in absence of assessee. The Ld. CIT(A) has also dismissed the appeal of the assessee on the ground that multiple opportunities have been provided to the assessee to produce the shareholders before the AO but there was non-compliance on behalf of the assessee, as a result of which, he dismissed the appeal of the assessee.
Keeping in view, the submission made by the assessee as well as considering the facts, we are inclined to restore the appeal of the assessee before the AO by giving an opportunity to the assessee to place all its material / documents whatever required by the AO to prove its case. Accordingly, the order passed by the AO confirmed by the Ld. CIT(A) is hereby set aside and the appeal of the assessee is remitted back to the file of the AO for fresh adjudication after hearing the assessee. Appeal of the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 6th May, 2025 Sd/- Sd/- (Rakesh Mishra /राकेश �म�) (Pradip Kumar Choubey /�द�प कुमार चौबे) Accountant Member/लेखा सद�य Judicial Member/�या�यक सद�य Dated: 6th May, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Pratibha Griha Nirman Pvt. Ltd., 15/2/1, Deodar Street, Kolkata- 700019 2. Respondent – ITO, Ward-5(2), Kolkata 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail)