BHATPARA COUNTRY SPIRIT SHOP,KOLKATA vs. ITO, WARD-26(1), KOLKATA

This appeal filed by the assessee pertaining to the Assessment Year (in short “AY”) 2013-14 is directed against the I.T.A. No.: 517/Kol/2021 Assessment Year: 2013-14 Bhatpara Country Spirit Shop Legal Representative Shri Atrik Kumar Saha. order passed u/s 250 of the Income Tax Act, 1961 (in short the “Act”) by ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short ld. “CIT(A)”] dated 30.09.2021 which is arising out of the assessment order framed u/s 143(3) of the Act dated 29.03.2016.

The assessee is in appeal before this Tribunal raising the following grounds: “

From perusal of the grounds we find that the sole grievance of the assessee is that sufficient opportunity has not been provided by ld. CIT(A) to explain the alleged difference of Rs. 6,92,631/- arising out of the purchases reflected in Form 26AS as against the purchases reflected in the books of account. Prayer is made to restore the issue to ld. CIT(A) by giving one more opportunity of hearing.

Ld. D/R is fair enough not to oppose this request.

We have heard ld. D/R and perused the records placed before us. We note that the assessee is a partnership firm engaged in the business of trading of country liquor. Income of Rs. 5,58,820/- is declared in e-return filed on 24.12.2013 for AY 2013-14. After the case being selected for scrutiny through CASS followed by serving of notices issued u/s 143(2) & 142(1) of the Act. Ld. AO completed the assessment assessing income at Rs. 12,87,063/- after making addition of Rs. 7,28,240/- which included the addition for difference in purchases from M/s. IFB Agro Industries Ltd. of Rs. 6,92,631/-. Though the assessee filed reconciliation statement to explain the difference which was initially detected by ld. AO at Rs. 50,92,862/-, however, ld. AO finally came to a conclusion that there is a difference of purchases between the Form 26AS and the ledger account of M/s. IFB Agro Industries Ltd. at Rs. 6,92,631/- and the same deserves to be added to the income of the assessee.

Aggrieved the assessee is now in appeal before this Tribunal.

Further, the assessee failed to get any relief on this issue by ld. CIT(A) as the assessee could not appear on the date of hearing I.T.A. No.: 517/Kol/2021 Assessment Year: 2013-14 Bhatpara Country Spirit Shop Legal Representative Shri Atrik Kumar Saha. for unavoidable circumstances and due to COVID-19 restrictions. In the grounds, the assessee has prayed for providing one more opportunity to go before ld. CIT(A) for the adjudication of the issue as the impugned order is ex-parte qua the assessee.

Since no objection has been raised by ld. D/R, we, being fair to both the parties and in the interest of justice, restore the issue of alleged mismatch of purchases at Rs. 6,92,631/- made by the assessee from M/s. IFB Agro Industries Ltd. and restore it to ld. CIT(A) who shall adjudicate the issue on merit and pass a speaking order in accordance with law. Needless to mention that proper opportunity of being heard should be provided to the assessee. The assessee is also directed not to take adjournment, unless otherwise required for reasonable cause. In case after providing sufficient opportunity to the assessee, there is no compliance before the ld. CIT(A), then ld. CIT(A) can pass the order in accordance with law.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Kolkata, the 30th September, 2022. Sd/- Sd/- [Sonjoy Sarma] [Manish Borad] Judicial Member Accountant Member Dated: 30.09.2022 Bidhan (P.S.)