B P ENGICON PRIVATE LIMITED,SAMASTIPUR vs. DEPUTY COMMISSIONER, DARBHANGA
Facts
The Assessing Officer found a significant portion of the assessee's capital as unexplained and brought it to tax. The assessee appealed to the CIT(Appeals), but failed to provide substantiating documents or submissions, leading to an ex-parte dismissal.
Held
The Tribunal noted that the assessee did not produce relevant documents during assessment proceedings and failed to substantiate its claim before the CIT(Appeals) despite opportunities. However, to ensure natural justice, the Tribunal set aside the CIT(Appeals) order.
Key Issues
Whether the CIT(Appeals) order dismissing the appeal ex-parte was justified, and whether natural justice requires remitting the case back to the CIT(Appeals) for a fresh opportunity.
Sections Cited
115BBE of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA-PATNA ‘e-COURT’, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ) & Shri Sanjay Awasthi
Per Duvvuru RL Reddy, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), dated 31st March, 2024 passed for Assessment Year 2015-16.
ITA No. 418/PAT/2024 (A.Y. 2015-2016) B P Engicon Private Limited 2. None appeared on behalf of the assesese at the time of hearing. Therefore, we have decided to dispose of the appeal after hearing the ld. Departmental Representative and perusing the material available on record.
Brief facts of the case are that the ld. Assessing Officer examined all the facts in detail and observed that out of capital of Rs.1,24,00,000/- of M/s. B.P. Engicon Pvt. Limited (Rs.9.00 lakhs authorized and Rs.115.00 lakhs share application money), only Rs.51,54,185/- is explained and remaining capital of Rs.72,45,815/- is unexplained and brought to tax under section 115BBE of the Income Tax Act, 1961. 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 neither filed the written submission nor represented the case before the ld. CIT(Appeals). Thereafter the ld. CIT(Appeals) dismissed the appeal ex-parte on 31st March, 2024.
On being aggrieved, the assessee preferred an appeal before the ITAT.
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, the ld. Assessing Officer passed the assessment order assessing the income at Rs.1,07,63,410/- and the taxable income at
ITA No. 418/PAT/2024 (A.Y. 2015-2016) B P Engicon Private Limited Rs.72,45,815/- 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 order passed by the ld. CIT(Appeals).
We have perused the material available on record. Considering the facts and circumstances of the case, we are 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, we 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 based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 27/05/2025.
Sd/- Sd/- (Sanjay Awasthi) (Duvvuru RL Reddy) Accountant Member Vice-President (KZ) Kolkata, the 27th day of May, 2025
ITA No. 418/PAT/2024 (A.Y. 2015-2016) B P Engicon Private Limited
Copies to :(1) B P Engicon Private Limited, Vill. Pirouna, Hasanpur Sugar Mills, Hasanpur, Samastipur-848205, Bihar (2) Deputy Commissioner, Darbhanga, Income Tax Office, Darbhanga, Chhapra, Bihar (3) Commissioner of Income Tax (Appeals), ; (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order
Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.
