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Facts
The assessee's appeals were dismissed by the CIT(A) for non-prosecution. The assessee faced a delay in filing the appeal before the CIT(A) due to various reasons including tax consultant's busy schedule and personal issues. The original assessment involved a search and seizure operation and disallowance of expenses.
Held
The Tribunal condoned the delay in filing the appeal after noting it was not intentional. It was held that the CIT(A) order was an ex-parte order, lacking merit discussion. Consequently, the Tribunal set aside the CIT(A) order and restored the appeals to the CIT(A) for a fresh hearing.
Key Issues
Whether the appeals should be restored to the CIT(A) for a fresh hearing when they were dismissed for non-prosecution without merit discussion, and whether the delay in filing the appeal was justifiable.
Sections Cited
250, 132, 153C, 153A, 143(2), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH: KOLKATA
Before: Shri Pradip Kumar Choubey& Shri Sanjay Awasthi]
ORDER / आदेश Per Pradip Kumar Choubey, JM:
These are the appeals preferred by the assessee against the separate orders of Commissioner of Income Tax (Appeal)-20, Kolkata (hereinafter referred to as the Ld. CIT(A)] for AY 2011-12 to 2015-16. Since in all the appeals, issues are common to 2371/Kol/2024 Assessment Year: 2011-12 to 2015-16 Tirupati Infrapromoters Pvt. Ltd. hence taken up together for disposal by taking for AY 2015- 16 as a lead case.
At the outset it appears that there is a delay of 109 days in filing the appeal and for this assessee has filed a condonation petition. Condonation petition of the assessee reveals thus-
“Dated: 26.11.2024 Before The Hon’ble Members Income Tax Appellate Tribunal 225C, A. J. C. Bose Road, Kolkata-700020 Assessee: M/s Tirupati Infrapromoters pvt. Ltd. PAN: AADCT 3567 D Asst. year: 2015-16 Sub: Prayer for the condonation of Delay Your Honours, The order dated 10.06.2024 under Section 250 of the Income Tax Act, 1961 for the AY 2015-16 passed by the Commissioner of Income Tax (Appeals)-20, Kolkata was uploaded on the portal on the same day. The same was forwarded to the tax consultant on 15.07.2024 for taking necessary steps. However, the office of the tax consultant was busy in filing income tax returns of their clients and as such, they could not be able to prepare the memorandum of appeal immediately. Thereafter, the director of the assessee was outstation for some personal assignments and the memorandum of appeal could get signed on 10.08.2024. The appeal fee was also paid on the said date. However, Shri Rajeeva Kumar, Advocate, who was looking after the matter, had been to his native place to see his seriously ailing uncle who eventually expired on 24.01.2024. He resumed office from 21.11.2024. Under the circumstances, the appeal against the order dated 10.06.2024 under Section 250 of the income tax Act, 1961 could not be filed in time. As the impugned order was uploaded on the portal on 10.06.2024, the limitation for filing appeal in this case expired on 09.08.2024. Thus, there is a delay of 109 days in filing the present appeal. In view of the facts of the case narrated hereinabove, it is prayed that the delay of 109 days in filing the present appeal may kindly be condoned in the interest of justice. For this act of kindness, the assessee, as in duty bound, shall ever pray. to 2371/Kol/2024 Assessment Year: 2011-12 to 2015-16 Tirupati Infrapromoters Pvt. Ltd. Thanking you, Yours faithfully For M/s Tirupati Infrapromoters Pvt. Ltd.” The Ld. D.R did not raise any objection. On perusal of the petition we find that delay caused was not intentional, therefore, we condone the delay and admit these appeals for adjudication.
Brief facts of the case of the assessee are that a search and seizure operation was conducted u/s 132 of the Act in the residential and business premises of the various persons belonging to the National Plasto Group of cases. The investigation report prepared by investigation wing; Kolkata, reveals that National Plasto group has transferred their shares to their group companies approximately to the tune of Rs. 26.58 crores. On perusal of the incriminating documents seized, proceedings u/s 153C read with Section 153A of the Act was initiated. In view of the notice u/s 153C return of income for AY 2015-16 was filed disclosing the total income at Rs. 2170/-. A notice u/s 143(2) and 142(1) of the Act were also issued. During the course of assessment, the assessee company submitted a ledger of purchase and sale of fancy sarees. The assessee was asked to provide details like bills, ledger and back account statement marking the said transaction. The departmental inspector has deputed to examine the existence of such companies with which the assessee company has made transaction for trading fabrics. Inspector’s report was that there is no physical existence of the said alleged paper companies with whom such bogus transaction of sales and purchases were made. The AO after going over the statement made by Shri Kothari and the departmental report, an expenses of Rs. 41,628/- booked in the books of account are disallowed and added to the income of the assessee company.
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 non- prosecution without discussing into merit of the case. to 2371/Kol/2024 Assessment Year: 2011-12 to 2015-16 Tirupati Infrapromoters Pvt. Ltd. Being aggrieved and dissatisfied the present appeal has been preferred by the assessee before us.
The Ld. Counsel of the assessee instead of arguing into the merit of the case in the all the above appeals have fairly submitted that the order passed by the Ld. CIT(A) is not on the merits rather it is an an ex-parte order. The prayer of the Ld. Counsel for the assessee is that the assessee has to be given an opportunity to place his case before the Ld. CIT(A).
The Ld. DR though supports the impugned order did not raise any objection in remitting the case of the assessee before the Ld. CIT(A).
We have perused the order of Ld. CIT(A) and find that appeal of the assessee has been dismissed for want of prosecution as the assessee failed to offer any explanation or submission in support of the grounds raised. There is no discussion on the merit of the case by the Ld. CIT(A). Keeping in view, the order passed by the Ld. CIT(A) and for the interest of justice all the appeal of the assessee are hereby restored into the file Ld. CIT(A) to pass a fresh order. Accordingly, the order passed by the Ld. CIT(A) in all the above appeals are hereby set aside. The Ld. CIT(A) is directed to pass an afresh order after hearing the assessee.
In the result, all the appeals filed by the assessee are allowed for statistical purposes.
Order is pronounced in the open court on 11th March, 2025