ADITYA GARDEN,KOLKATA vs. ASSESSMENT UNIT WARD 37(1), GOVT PLACE

The appeal is time barred by 2 days in filing the appeal by the assessee. However, the assessee did not file any condonation petition. The assessee is not aware of the order passed by the ld. 1 (A.Y. 2021-2022) Aditya Garden CIT(Appeals). When the assessee came to know about the order passed by the ld. CIT(Appeals), the assessee approached the ld. A.R. to prefer an appeal, due to that there was a delay of 2 days in filing the appeal before the Tribunal. Therefore, he pleaded to condone the delay.

Considering the facts and circumstances of the case, I am inclined to condone the delay since the delay is not due to negligence on the part of assessee. Hence the delay is condoned.

Brief facts of the case are that the assessee is a firm, which filed its return of income for the assessment year 2021-22 on 08.12.2021 declaring total income of Rs.7,770/- and net agricultural income of Rs.27,66,250/- which was claimed as exempt. The case of the assessee was selected under CASS for scrutiny to examine the issue of ‘Large Agricultural Income’ as the assessee has not filed return for last two years. Accordingly, notice under section 143(2) of the Income Tax Act, 1961 was issued to the assessee on 28.06.2022 and duly delivered to e-filing Portal of the assessee as well as on the registered mail, but the assessee did not make any respond. Thereafter notices under section 142(1) of the Act seeking details such as copy of note on nature and type of agricultural income, measurement of agricultural land in acre, ownership of agricultural land and other details of agricultural land such as land held on lease, the amount and documentary evidence of lease rent paid, details of bank accounts maintained along with bank statement etc. But the assessee did not furnish any reply. Thereafter notice under section 133(6) was issued to the (A.Y. 2021-2022) Aditya Garden partners of the assessee-firm, but no satisfactory reply received from the assessee. Therefore, the assessment was framed by the ld. Assessing Officer by computing income under section 143(1)(a) of Rs.7,770/- and also making additions of Rs.32,32,940/- at para 3.3.7 and 4.5 and Rs.47,359/- at para 3.3.8 & 5 of his order and assessed income at Rs.32,88,069/-.

On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals).

The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate its claim, but the appellant did not file the written submissions and did not represent the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal ex-parte on 21st August, 2024.

On being aggrieved, the assessee preferred an appeal before the ITAT.

At the time of hearing, it was the submission of the ld. Counsel for the assessee that ld. CIT(Appeals) passed an ex-parte order by upholding the order passed by the ld. Assessing Officer. Therefore, he pleaded to delete the addition made by the ld. Assessing Officer as confirmed by the ld. CIT(Appeals).

At the outset, ld. D.R. brought to my notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer during the assessment proceedings. Therefore, (A.Y. 2021-2022) Aditya Garden the ld. Assessing Officer passed the assessment order assessing the taxable income at Rs.32,88,069/-. Thereafter the assessee preferred an appeal before the ld. CIT(Appeals). The ld. CIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. CIT(Appeals). He further submitted that before the ITAT, the assessee did not substantiate its claim. Therefore, he pleaded to uphold the orders passed by the revenue authorities.

I have heard the rival submissions and perused the material available on record. Considering the facts and circumstances of the case, I am inclined to set aside the order passed by the ld. CIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits of the case, based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes.