CITY SANITARY & TILES,BHUBANESWAR vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, BHUBANESWAR
Facts
The assessee filed appeals against orders of CIT(A) concerning quantum additions for AY 2017-2018 & 2019-2020, and penalty u/s.271AAC(1) for the same years. The assessee claimed insufficient opportunity to be heard and sought more time to produce documents. The Revenue supported the lower authorities' orders.
Held
The Tribunal noted the assessee's inability to produce documents. To provide a fair opportunity, the appeals concerning quantum additions were restored to the Assessing Officer for readjudication. The penalty appeals were cancelled, with liberty to initiate fresh penalty proceedings after the quantum adjudication.
Key Issues
Whether the assessee was denied sufficient opportunity by the CIT(A) and if the case should be remanded for fresh adjudication and penalty proceedings.
Sections Cited
69C, 271AAC(1)
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश कुमार, लेखा सदस्य के समक्ष । (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA Nos.311, 312, 323 & 324/CTK/2025 (नििाारण वर्ा / Assessment Years : 2017-2018 & 2019-2020) City Sanitary & Tiles, Vs ACIT, Central Circle-1, Bhubaneswar Plot No.2093(P), Jayadev Vihar, Bhubaneswar-751013 PAN No. :AACFC 1444 J (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) .. नििााररती की ओर से /Assessee by : Shri Biswa Ranjan Pattnaik, CA राजस्व की ओर से /Revenue by : Shri Nishant Rao B, Sr. DR सुनवाई की तारीख / Date of Hearing : 22/07/2025 घोषणा की तारीख/Date of Pronouncement : 22/07/2025 आदेश / O R D E R Per Bench : ITA Nos.311 & 312/CTK/2025 have been filed by the assessee against separate orders in the quantum appeals passed by the ld. CIT(A), Bhubaneswar-2, both dated 21.03.2025 for assessment years 2017-2018 & 2019-2020. ITA Nos.323&324/CTK/2025 have been filed by the assessee against the separate orders passed by the ld. CIT(A), Bhubaneswar-2, both dated 27.03.2025 for the assessment years 2017-2018 & 2019-2020, thereby levying penalty u/s.271AAC(1) of the Act. 2. First we shall decide the appeals of the assessee in ITA Nos.311&312/CTK/2025 filed for A.Y.2017-2018 & 2019-2020 against the quantum additions made by the ld. Assessing Officer and confirmed by the ld. CIT(A).
2 ITA Nos.311,312,323&324/CTK/2025 3. It was the submission of the ld.AR that while confirming the addition as made by the ld. Assessing Officer in the assessment order u/s.69C of the Act, the ld. CIT(A) has not provided the sufficient opportunity of being heard to the assessee. it was also the submission that the assessee was having all the relevant documents to prove its case and for this the assessee in its written submission had sought time to produce the same, however, ld. CIT(A) without considering the same dismissed the appeal of the assessee. It was the prayer of the ld. AR that the assessee may be provided one more opportunity so that the assessee could be able to provide all the documentary evidence to substantiate its case before the ld.AO. 4. In reply, ld. Sr. DR vehemently supported the orders of the ld. Assessing Officer and ld. CIT(A). 5. We have considered the rival submissions. A perusal of the assessment order as well as the appellate order clearly shows that the assessee has shown its inability to produce the relevant documents as asked for before either of the authorities below. It is also noticed that the assessee is trying to make its submission that some trainee accountants running their software. This is nothing but an afterthought. But so as to grant adequate opportunity to represent its case and produce the relevant documentary evidence before the Assessing Officer, the issues in both the appeals are restored to the file of ld. Assessing Officer for readjudication afresh. The assessee is also directed to cooperate with the Assessing Officer in the readjudication proceedings positively. Thus, the appeals of
3 ITA Nos.311,312,323&324/CTK/2025 the assessee in ITA Nos.311&312/CTK/2025 are partly allowed for statistical purposes. 6. In regard to penalty appeals of the assessee filed in ITA Nos.323&324/CTK/2025, since we have already restored the issues in the quantum appeals to the file of the ld. Assessing Officer for fresh adjudication, therefore, the consequential penalty levied u/s.271AAC(1) of the Act in both the appeals are hereby cancelled with liberty to the ld. Assessing Officer to initiate fresh penalty proceedings after readjudication of the quantum proceedings afresh. Thus, the appeals of the assessee in ITA Nos.323&324/CTK/2025 are allowed. 7. In the result, ITA Nos.311&312/CTK/2025 are partly allowed for statistical purposes and ITA Nos.323&324/CTK/2025 are allowed. Order dictated and pronounced in the open court on 22/07/2025. Sd/- Sd/- (राजेश कुमार) (जाजज माथन) (RAJESH KUMAR) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 22/07/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, 5. Cuttack आदेशािुसार/ BY ORDER, 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack
