SAFFRON VINCOM PRIVATE LTD.,KOLKATA vs. ITO, WARD 3(2), KOLKATA, KOLKATA

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ITA 648/KOL/2017Status: DisposedITAT Kolkata30 November 2018AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) passed an ex parte order without granting the assessee an opportunity to be heard. Therefore, the Tribunal set aside the CIT(A)'s order for de novo adjudication.

What were the facts?

The assessee's appeal was dismissed ex parte by the CIT(A) for non-prosecution. The AO had made additions towards share capital, cash deposits, and disallowed expenditure under Section 14A.

What were the issues?

Whether the CIT(A) erred in passing an ex parte order without providing the assessee with adequate opportunity to present its case.

Which sections of the Income-tax Act were involved?

Section 144,Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH : KOLKATA

Before: Hon’ble Shri A T Varkey, JM, & Shri M.Balaganesh, AM]

Hearing: 29.11.2018Pronounced: 30.11.2018
1.

This appeal by the Assessee arises out of the order of the Learned Commissioner of Income Tax(Appeals)-1, Kolkata [in short the ld CIT(A)] in Appeal No. 299/CIT(A)-I/W-3(2)/2015-16 dated 31.01.2017 against the order passed by ITO, Ward-3(2), Kolkata [ in short the ld AO] under section 144 of the Income Tax Act, 1961 (in short “the Act”) dated 13.03.2015 for the Assessment Year 2012-13.

2.

Though the assessee has raised several grounds before us, one of the grounds raised is with regard to lack of opportunity granted to the assessee by the ld. CIT(A). We find

Saffron Vincom Pvt. Ltd. A.Yr. 2012-13 that the ld. CIT(A) had passed an ex parte order dismissing the appeal of the assessee for non-prosecution.

3.

The brief facts of this appeal is the assessment was completed by the ld. AO u/s 144 of the Act on 13.03.2015 wherein the addition towards share capital raised during the year to the tune of Rs. 2,72,26,000/-; addition towards cash deposits in Indusind Bank to the tune of Rs. 2,01,000/- and disallowance of expenditure u/s 14A of the Act to the tune of Rs. 75,848/-, were made. We find that the assessee has raised one of the grounds before us that the written submission was sought to be filed by the Director of the company before the ld. CIT(A) which was refused by the ld. CIT(A) to accept the same. Before us, the Director of the assessee company Shri B. Chowdhury appeared in person and sought for an adjournment. But we find from the perusal of the grounds raised by the assessee and from the facts available on record that the order of the ld. CIT(A) has been passed ex parte without hearing the assessee. Hence we are inclined to reject the adjournment petition sought by the director of the assessee company and after taking consent from both the parties, we deem it fit and appropriate, in the interest of justice and fair play, to set aside the appeal to the file of the ld. CIT(A) for de novo adjudication on merits afresh in accordance with law. The assessee is at liberty to furnish necessary evidences in support of its contentions before the ld. CIT(A). Accordingly, grounds raised by the assessee are allowed for statistical purposes.

4.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 30.11.2018

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