SHREE BHAGIRATHI AGRO INDUSTRIES LLP,KOLKATA vs. A.C.I.T., CIRCLE - 1(2), KOLKATA, KOLKATA

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ITA 1721/KOL/2024Status: DisposedITAT Kolkata03 April 2025AY 2017-2018Bench: Shri Rajesh Kumar (Accountant Member), Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 1721/Kol/2024 Assessment Year: 2017-18 Shree Bhagirathi Agro Industries LLP Vs. ACIT, Circle-1(2), Kolkata (PAN: ADCFS 1216 P) Appellant / (अपीलार्थी) Respondent / प्रत्यर्थी Date of Hearing / सुनवाई की तिथि 18.03.2025 Date of Pronouncement/ आदेश उद्घोषणा की तिथि 03.04.2025 For the assessee / निर्धारिती की ओर से None For the revenue / राजस्व Smt. Ranu Biswas, Addl. CIT DR की ओर से Per Pradip Kumar 1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) order was ex-parte and passed without adjudication on merit. The case was remitted back to the CIT(A) for fresh adjudication on merit after hearing the assessee, and the assessee was directed to cooperate.

What were the facts?

The assessee, a limited partnership firm, filed a return declaring a loss. During scrutiny, the AO noted a large cash withdrawal by the assessee with no explanation and added it to the income. The assessee's appeal to the CIT(A) was dismissed for want of prosecution.

What were the issues?

Whether the CIT(A) order passed ex-parte without adjudication on merit can be sustained, and whether the delay in filing the appeal should be condoned.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” 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)- Addl/JCIT(A)-2, Nagpur (hereinafter referred to as the Ld. CIT(A)] dated 06.02.2024 for AY 2017-18.

Assessment Year: 2017-18 Shree Bhagirathi Agro Industries LLP 2. It appears from the report of the registry that the appeal has been filed after a delay of 130 days for this the assessee has filed condonation petition., which are as follows-

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

3.

Brief facts of the case of the assessee are that the assessee being a limited partnership firm engaged in the business of cold storage activities, filed return of income for AY 2017-18 declaring loss of Rs. 55,95,149/-. The case of the assessee was selected for scrutiny, statutory notices u/s 143(2) was issued. The AO find that the assessee has withdrawn huge cash amounting to Rs. 4,05,30,000/- during the AY 2017-18 and there was no explanation submitted by the assessee, as a result of which, the said amount has been added in the income of the assessee.

4.

Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed for want of prosecution.

Being aggrieved and dissatisfied the assessee preferred an appeal before us.

5.

None appeared on behalf of the assessee. It appears from the record that the order passed by the Ld. CIT(A) is an ex-parte order without adjudication on merit. The Ld. D.R though supports the impugned order but did not raise any objection if the appeal of the assessee remitted to the file of Ld. CIT(A).

7.

After hearing the Ld. D.R, we have perused the order of AO as well as Ld. CIT(A). On perusal of the order of Ld. CIT(A) it appears to us that it has been passed an ex-parte order without discussing on merit of the case. The Ld. CIT(A) dismissed the appeal of the assessee by holding that despite of being several opportunities the assessee did not file any submission, hence the order passed by the AO is hereby confirmed. It is settled law that order shall not be passed in limine even it is passed ex-party. Keeping in view several judicial pronouncements that the case should be decided on merit, we are inclined to restore the appeal of the assessee before the Ld. CIT(A) with the direction to pass afresh order on merit after hearing the assessee. The assessee is also directed to co-operate in the proceedings. The order passed by the Ld. CIT(A) is hereby set aside. The case is remitted back to the file of Ld. CIT(A) for fresh adjudication without being prejudice to this order. The order passed by the CIT(A) is here by set aside.

Order is pronounced in the open court on 3rd April, 2025

Sd/- Sd/- (Rajesh Kumar/राजेश कुमार) (Pradip Kumar Choubey /�द�प कुमार चौबे) Accountant Member/लेखा सद�य Judicial Member/�या�यक सद�य Dated: 3rd April, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Shree Bhagirathi Agro Industries LLP, Flat No. 4A, Kapalitola lane, west Bengal, Kolkata - 700012 2. Respondent – ACIT, Circle-1(2), Kolkata 3. Ld. CIT(A)- Addl/JCIT(A)-2, Nagpur 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail)

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