AASHIRWAD EXCLUSIVE SAREE SALES PVT. LTD.,KOLKATA vs. I.T.O., WARD - 9(1), KOLKATA

Brief facts of the case of the assesseee are that the assessee being a company filed its return of income for AY 2013-14 declaring total income Nil. As per information available with the department for FY 2012-13 it is seen that the assessee has received Rs. 50,00,000/- in its bank account held with Karnataka Bank Limited. Notice u/s 148 of the Act was initially issued to the assessee and further in compliance to the decisions of the Hon’ble Apex Court passed in Union of India vs. Ashish Agarwal, show cause notice u/s 148(d) issued. Considering the reply of the assessee filed in reply to the show cause notice u/s 148A of the Act, the case was selected for scrutiny u/s 147 after getting approval from the competent authority. The assesseee has been asked to furnish the information with a view to examine the genuineness of taxability of transaction as it was found that the assessee was one of such beneficiaries and received total fund amounting to Rs. 50,00,000/- but despite lapse of sufficient time the assessee did not furnish any reply, amounting to Rs. 50,00,000/- found in its bank account, as a result of which, the AO added the same amount of Rs. 50,00,000/- being an unexplained money u/s 69A 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 failed to make any submission in spite of availing sufficient time and opportunity.

The Ld. A.R challenges the very impugned order thereby submitting that the reopening of proceedings initiated u/s 147 of the Act was bad in law as the purported section 151 was not obtained or was not in accordance with law. The Ld. Counsel further submits that the case of the assessee before the Ld. CIT(A) was heard an ex- party as the assessee could not file any submission. The Ld. Counsel is that the assessee has challenged the order of AO on the legal ground as well as on merit of the case as the addition of Rs. 50,00,000/- made by the AO as unexplained money by wrongly invoking the provision of Section 69A of the Act read with Section 115BBE of the Act. The prayer of the Ld. A/R is that his case may be remitted back to the file of Ld. CIT(A)

Contrary to that the Ld. D.R did not raise any objection in remitting the appeal back to the file of Ld. CIT(A).

We have perused the order passed by the Ld. CIT(A) and find that when before the Ld. CIT(A) the assessee did not appear, the Ld. CIT(A) has dismissed the appeal of the assessee on account of non-prosecution. There is no discussion on the merit of the case in the order of Ld. CIT(A). The Ld. CIT(A) has held that from the fact of assessee’s non- response to various notices, it is clear that apparently the assessee has no any specific submission to pursue the pending appeal. He dismissed the appeal of the assessee when the assesse failed to submit any response before him. There is no discussion on the merit of the case.

Keeping in view the order passed by the Ld. CIT(A) and considering the submission of the Ld. A.R we are inclined to restore the appeal of the assessee before the Ld. CIT(A) to pass afresh order after hearing the assessee on the legal ground as well as on merit of the case.