SRI SHIB NARAYAN BASU,NORTH 24 PARGANAS vs. DCIT, CIR 51, KOLKATA

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ITA 369/KOL/2017Status: DisposedITAT Kolkata31 May 2018AY 2009-103 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CIT(A) had accepted adjournment letters but passed ex parte orders without considering the merits. Therefore, in the interest of justice, the Tribunal decided to grant the assessee one more opportunity to present their case before the CIT(A).

What were the facts?

The CIT(A) dismissed the assessee's appeals ex parte for two assessment years, affirming the Assessing Officer's additions on account of non-deduction of TDS, non-deposit of TDS, and disallowance of certain expenditures. The assessee contended that there was a communication gap and the CIT(A) did not deal with the issues on merits.

What were the issues?

Whether the CIT(A) erred in passing ex parte orders without considering the assessee's submissions on merits, and whether the additions made by the AO were justified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 37,Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “B” KOLKATA

Before: Shri S.S.Godara & Dr. A.L. Saini

आदेश /O R D E R PER S.S.Godara, Judicial Member:- These two assessee’s appeals for assessment years 2009-10 and 2010-11 arise against Commissioner of Income Tax (Appeals)-15, Kolkata’s separate orders; both dated 21.12.2016, passed in case No.43 & 44/CIT(A)- 15/15-16/DCIT Cir-51/Kol; respectively, in proceedings u/s 143(3) r.w. 147 of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case files perused.

2.

We notice at the outset that the CIT(A)’s twin orders in both the impugned assessment year(s) dismiss the assessee’s appeals passed ex parte. He has affirmed the Assessing Officer’s action addition expenditure of A.Ys 09-10 & 10-11 Sh Shib Narayan Basu Vs. DCIT, Cir-51 Kol Page 2 ₹22,99,557/- on account of non-deduction of TDS qua payment made to foreign shipping lines, non deposit of TDS deducted to the tune of ₹20,833/- leading to addition of ₹2,08,300/-, non depositing Central Excise, ESI and PF contributions totaling to ₹32,373 both on time and subscriptions / donations expenditure to ₹15,050/- declined u/s 37 of the Act; in former and similar disallowance(s) / addition(s) of ₹21,11,740/-; paid to foreign shipping lines, ₹4,49,720/- in respect of tailor hire charges disallowed u/s. 40(a)(ia) of the Act, non depositing TDS deducted of ₹49,951/- leading to disallowance / addition of ₹49,95,100/-, Central Excise and ESI / PF dues of ₹28,821/- and subscription / donation expenditure of ₹15,300; respectively in the latter assessment year.

3.

Both Learned Representatives are fair enough in pointing out the fact that CIT(A) had accepted assessee’s adjournment letters before passing the impugned lower appellate order(s) ex parte dismissing his two appeals. Learned Authorized Representative submits that there was a communication gap as the relevant adjournment letter on the last date of hearing could not be placed before the lower appellate authorities. He highlights the fact thereafter that lower appellate order(s) do not deal with all the relevant issues narrated herein before affirming the Assessing Officer’s action in the two assessment year(s). We sought to know as to whether the tax prayer had filed all the relevant details regarding TDS and other issues or not. We are taken to case records suggesting him to have placed all documents as record qua legal plea alongwith the relevant reopening reasons, with payment details of head-wise charges, TDS deposit challans, Central Excise, ESI and PF donation and subscription, interest paid to bank for loan and utilization of funds, reply to show cause notice as well as shipment charges; both during assessment as well as the lower appellate proceedings. Learned Departmental Representative fails to dispute the fact that the CIT(A) has not considered the same on merits as well. We therefore deem it appropriate in larger interest of justice that Learned CIT(A) needs to grant one more innings to the assessee A.Ys 09-10 & 10-11 Sh Shib Narayan Basu Vs. DCIT, Cir-51 Kol Page 3 to present his case on all issues in both impugned assessment year(s). We make it clear that the assessee shall be afforded three effective opportunities of hearing instant order would be deemed to have been vacated if he fails to conclude final arguments within the said stipulated opportunities of hearing. These two assessee’s appeals are accepted for statistical purpose in above terms.

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