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Facts
The assessee filed its return of income for AY 2008-09, which was assessed under Section 143(3). Later, the PCIT passed an order under Section 263, leading the AO to add Rs. 17,57,00,000/- as unexplained fresh share capital due to non-compliance. The Ld. CIT(A) dismissed the assessee's subsequent appeal due to non-compliance.
Held
The ITAT allowed the assessee's appeal for statistical purposes, setting aside the order of the Ld. CIT(A). The case was remitted back to the file of the Ld. CIT(A) with a direction to provide the assessee an opportunity of hearing and for the assessee to cooperate in the proceedings, so a fresh order on merits could be passed.
Key Issues
Whether the Ld. CIT(A) was justified in dismissing the assessee's appeal for non-compliance (want of prosecution) without considering the merits of the addition of unexplained fresh share capital.
Sections Cited
143(3), 263, 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH: KOLKATA
Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]
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 09.10.2024 for AY 2008-09.
Assessment Year: 2008-09 M/s Knight Deal Trade Pvt. Ltd.
Brief facts of the case of the assessee are that the assessee filed its return of income for AY 2008-09. The return of the assessee was processed and an assessment order was passed u/s 143(3) of the Act on 21.05.2010 determining the total income at Rs. 89,780/-. Subsequently the PCIT passed an order u/s 263 of the Act and set aside the order passed by the AO u/s 147/ 143(3) of the Act. Consequent to the order passed u/s 263 of the Act, the AO issued notices and also issued summons to the director. The AO vide its order dated 28.03.2014 has held that the assessee disclosed its fresh share capital of Rs. 17,57,00,000/- which consists of Rs. 36,12,000/- (being issued, subscribed and paid up shares) and Rs. 1,72,08,800/- (being premium amount for issued shares). The AO has further held that due to non-compliance of the then directors, fresh share capital during the year amounting to Rs. 17,57,00,000/- remained unexplained and accordingly the same has been added to the assessee’s total income.
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 account of non- compliance from the side of the assessee.
Being aggrieved and dissatisfied the assessee preferred an appeal before us.
The Ld. Counsel instead of arguing into the merit of the case has prayed that the case is to be restored into the file of the Ld. CIT(A) as the appeal of the assessee has been dismissed for want of prosecution.
The Ld. D.R did not raise any objection in remitting the case back to the file of Ld. CIT(A) though he supports the impugned order.
Upon hearing the submission made by the counsel of the respective parties, we have perused the order of Ld. CIT(A) and find that the appeal of the assessee has been dismissed by holding that the appeal is not interested in pursuing the appeal. There is no order passed by Ld. CIT(A) on the merit of the case of the assessee. The submission of the ld. Counsel of the assessee is that the assessee has to give an opportunity to place its case before the Ld. CIT(A). For the interest of justice, we are inclined to restore the appeal of the assessee to the file of Ld. CIT(A) with a direction to pass afresh order after Assessment Year: 2008-09 M/s Knight Deal Trade Pvt. Ltd. giving an opportunity to hear the assessee. The assessee is directed to co-operate in the proceedings. Accordingly, the order passed by the Ld. CIT(A) is hereby set aside the case is remitted back to the file of the Ld. CIT(A).
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 16th April, 2025