KOOL KIDZ PRODUCTS LIMITED,KOLKATA vs. I.T.O., WARD - 4(4), KOLKATA

That therefore, the Petitioner prays that the delay in submissions of this Appeal be kindly condoned and the Appeal by admitted and adjudicated.” 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 is that the assessee is a public limited company filed its return of income for AY 2017-18 declaring total income of Rs. 18,00,789/-. The case of the assessee was selected for scrutiny u/s 143(3), notice u/s 142(1) was issued. The show cause notice has also been issued to the assessee and in response to the same the assessee filed reply with documents. The AO on examination of the bank statement and certificate received from the banks observed that the assessee company has failed to explain the source of cash of Rs. 16,35,000/-. Accordingly, it has Assessment Year: 2017-18 Kool Kidz Products Ltd. ben added u/s 68 read with Section 115BBE of the Act. The AO has further found that on examination of ITR and CBEC data from ITS details, it reveals that the assessee company has shown purchase as per ITR to the tune of Rs. 3,26,06,654/- and purchase shown as per Profit and loss account to the tune of Rs. 2,18,89,693/-. The AO has further found that on perusal of CBEC data it is observed that the assessee company had purchased imported toys to the tune of Rs. 2,26,08,668/-. Hence there is a discrepancy in the purchase to the tune of Rs. 99,97,986/-. Accordingly, the same has been added to the income of the assessee considered as undisclosed income. The AO has further found that on examination of audited accounts for FY 2016-17 the assessee company had incurred expenses in clearing and forwarding charges, freight on import consignment, advertisement and sales promotion expenses, legal and promotion charges and rent, licence fee and warehouse charges but the assessee company failed to furnish any supporting evidence in this respect as a result of which the AO has added an amount of Rs. 55,69,068/- u/s 40(a)(ia) 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 non- compliance on behalf of the assessee.

The Ld. Counsel instead of arguing into the merit of the case has only prayed that the appeal of the assessee be restored into the file of Ld. CIT(A) for fresh decision after giving an opportunity to the assessee to place its case before the Ld. CIT(A). The submission of the Ld. Counsel of the assessee is that the assessee could not appear before the Ld. CIT(A) as no notice has been served to the assessee.

Contrary to that the Ld. D.R supports the impugned order but did not raise any objection in restoring the appeal of the assessee before the Ld. CIT(A).

We have gone through the order passed by the Ld. CIT(A) and find that there was non-compliance on behalf of the assessee as a result of which, the Ld. CIT(A) has Assessment Year: 2017-18 Kool Kidz Products Ltd. confirmed the order passed by the AO. There is no denying to this fact that there was no discussion on the merit of the case. Keeping in view the submission made by the assessee, considering the order passed by the Ld. CIT(A), we are inclined to restore the matter back to the file of Ld. CIT(A) for fresh decision after hearing the assessee. The assessee is also directed to place its case before the Ld. CIT(A) without taking any adjournment on frivolous ground. Accordingly, the order passed by the AO confirmed by the Ld. CIT(A) is hereby set aside.