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Facts
The assessee appealed against the confirmation by the CIT(A) of two additions made by the AO: one for Rs. 48,58,090/- (1% of unverified investments) and another for Rs. 5,52,46,800/- (unverified interest income on loans and advances), both primarily due to the assessee's non-compliance.
Held
The Tribunal noted the assessee's non-compliance before lower authorities but, considering reasons beyond the assessee's control, accepted the plea for another opportunity. Consequently, the appeal was restored to the file of the Assessing Officer for fresh adjudication, with directions for the AO to grant a reasonable opportunity to the assessee and for the assessee to cooperate.
Key Issues
The key issues are the confirmation of an addition of Rs. 48,58,090/- representing 1% of unverified total investments, and the confirmation of an addition of Rs. 5,52,46,800/- for unverified interest income on loans and advances, both arising from the assessee's non-compliance.
Sections Cited
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Income Tax Appellate Tribunal, “A” BENCH: KOLKATA
Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey]
ORDER / आदेश Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 31.01.2024 for the AY 2017-18.
There are two issues in the present appeal, one is against the confirmation of addition of Rs. 48,58,090/- as made by the AO by making an addition @ 1% of total investments of Rs. 48,58,09,000/- which could not be verified and second is against the confirmation of addition of Rs. 5,52,46,800/- by the Ld. CIT(A) as made by the Assessment Year: 2017-18 Naina Devi Commerce Pvt. Ltd. AO on account of interest income on loan and advances which could not be verified due to non-compliance by the assessee.
After hearing the rival contentions and perusing the material on record, we find that the assessee was not compliant before the AO as well as before the Ld. CIT(A) and therefore orders by both the authorities below were passed without the merits of the case being taken into account as the assessee failed to show up on the various dates given by these parties. During the course of hearing, the Ld. Counsel prayed before us that the assessee could not appear before either of the authorities below due to reasons which were beyond the control of the assessee and therefore, in the interest of justice and fair play the assessee may kindly be given one more opportunity to present the case on merit before the AO. Accepting the prayers of the assessee, we are inclined to restore the appeal to the file of AO with the direction to decide the same after affording reasonable opportunity to the assessee. Simultaneously, we direct the assessee to co-operate in the set aside assessment proceedings. In the result, the appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 15th January, 2025
Sd/- Sd/- (Pradip Kumar Choubey /�द�प कुमार चौबे) (Rajesh Kumar/राजेश कुमार) Judicial Member/�या�यक सद�य Accountant Member/लेखा सद�य Dated: 15th January, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Naina Devi Commerce Pvt. Ltd., 2, Khetra Das Kolkata, Bowbazar, S.O. Kolkata-700012 2. Respondent – ITO, Ward-6(3), Kolkata 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail)