SAI COMMERCIAL & INVESTMENT PVT. LTD.,KOLKATA vs. ITO, WARD - 3(2), KOLKATA, KOLKATA

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ITA 1285/KOL/2018Status: DisposedITAT Kolkata25 November 2020AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal held that the ex-parte dismissal by the CIT(A) without disposing of the case on merits was not permissible and violated principles of natural justice. Both parties agreed to restore the matter for fresh adjudication.

What were the facts?

The assessee filed an appeal with a delay of 8 days. The CIT(A) passed an ex-parte order dismissing the appeal as the assessee did not appear. The Assessing Officer had passed a best judgment assessment order.

What were the issues?

Whether an ex-parte order by CIT(A) without deciding on merits is valid and if principles of natural justice were violated.

Which sections of the Income-tax Act were involved?

Section 144,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH, KOLKATA

Before: Sri J. Sudhakar Reddy & Sri Aby T. Varkey

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH, KOLKATA (Before Sri J. Sudhakar Reddy, Accountant Member & Sri Aby T. Varkey, Judicial Member) Assessment Year: 2012-13 Sai Commercial & Investment Pvt. Ltd..........................................................……………….…......Appellant C/o. Subash Agarwal & Associates Siddha Gibson 1, Gibson Lane 2nd Floor Suite-213 Kolkata – 700 069 [PAN : AAHCS 3343 Q] Vs. Income Tax Officer, Ward-3(2), Kolkata...…………………………...............……….……....…....Respondent Appearances by: Shri Subash Agarwal, Advocate, appeared on behalf of the assessee. Smt. Ranu Biswas, Addl. CIT D/R, appearing on behalf of the Revenue. Date of concluding the hearing : September 9th, 2020 Date of pronouncing the order : November 25th, 2020 ORDER Per J. Sudhakar Reddy, AM :-

This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals) – 1, (hereinafter the “ld.CIT(A)”), passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 28/03/2018, for the Assessment Year 2012-13.

2.

There is a delay of 8 (eight) days in filing of this appeal by the assessee. After perusing the petition for condonation of delay, we are convinced that the assessee was prevented by sufficient cause in filing the appeal in time. Hence, we condone the delay and admit this appeal.

3.

After hearing rival contentions and perusing the orders of the lower authorities, we find that the assessee has not appeared before the ld. CIT(A) and hence an ex-parte order was passed dismissing the appeal of the assessee. We find that the ld. CIT(A) has not disposed off the case on merits. This is not permissible in law. We further find that the Assessing Officer has passed a best judgment assessment order u/s 144 of the Act. There is violation of principles of natural justice.

4.

The ld. D/R, agreed with the submissions of the ld. Counsel for the assessee that the matter may be restored to the file of the Assessing Officer for fresh adjudication.

Assessment Year: 2012-13 Sai Commercial & Investment Pvt. Ltd Commercial & Investment Pvt. Ltd. While agreeing that there were violations of principles of natural justice, he argued While agreeing that there were violations of principles of natural justice, he argued While agreeing that there were violations of principles of natural justice, he argued that a commitment be taken from the assessee that he would co a commitment be taken from the assessee that he would co-operate operate in the set aside proceedings before the Assessing Officer gs before the Assessing Officer.

5.

In view of the above submission made by both the parties, we restore In view of the above submission made by both the parties, we restore In view of the above submission made by both the parties, we restore this appeal to the file of the Assessing Officer for fr to the file of the Assessing Officer for fresh adjudication in accordance with law. The esh adjudication in accordance with law. The Assessing Officer shall provide adequate opportunity to the assessee before passing the Assessing Officer shall provide adequate opportunity to the assessee before passing the Assessing Officer shall provide adequate opportunity to the assessee before passing the assessment order. The assessee shall appear before the Assessing Officer, take notice assessment order. The assessee shall appear before the Assessing Officer, take notice assessment order. The assessee shall appear before the Assessing Officer, take notice and thereafter co-operate in completi operate in completion of the assessment proceedings. on of the assessment proceedings.

6.

In the result, appeal of the assessee is allowed for statistical purposes as directed In the result, appeal of the assessee is allowed for statistical purposes as directed In the result, appeal of the assessee is allowed for statistical purposes as directed above.

Kolkata, the Kolkata, the 25th day of November, 2020 20. Sd/- Sd/- [Aby T. Varkey] [J. Sudhakar Reddy J. Sudhakar Reddy] Judicial Member Accountant Member Accountant Member Dated : 25.11.2020 {SC SPS} Copy of the order forwarded to:

1. 1. Sai Commercial & Investment Pvt. Ltd Investment Pvt. Ltd C/o. Subash Agarwal & Associates C/o. Subash Agarwal & Associates Siddha Gibson 1, Gibson Lane 2nd Floor Suite-213 Kolkata – 700 069 2. Income Tax Officer, Ward-3(2), Kolkata 3(2), Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR), Kolkata Benches, Kolkata.

5. CIT(DR), Kolkata Benches, Kolkata.

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