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Income Tax Appellate Tribunal, “B” BENCH: KOLKATA
Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]
ORDER / आदेश Per Pradip Kumar Choubey, JM:
This appeal filed by the assessee pertaining to the Assessment Year (in short ‘AY’) 2017-18 is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the ‘Act’) by ld. Commissioner of Income-tax (Appeals)-NFAC, Delhi [in short ld. ‘CIT(A)’] dated 27.02.2024 arising out of the assessment order dated 15.12.2019.
Assessment Year: 2017-18 Laxmi Clothing Pvt. Ltd. 1.1. The brief facts of the case of the appellant is that assessee being a company filed its return of income for the A/Y 2017-2018 declaring business loss of Rs. 4,70,526/-. The case of the assessee was taken up for scrutiny and in response to the notice, assessee submitted various documents, and balance sheet. Learned A.O. having gone through the documents found that during the year under consideration assessee’s share capital was raised for a tune of Rs.11,70,000/-and share premium was raised for Rs. 58,71,491/-and the face value of the share of the company was rs. 10/- and premium of Rs. 56.40/-per share aggregating to Rs. 66.40/-per share and total consideration was received at Rs.6598800/-. The A.O. has held that the amount of Rs. 6598800/-is nothing but the undisclosed amount of the assessee and accordingly the same has been added in the total income of the assessee.The said order has been challenged by the assessee before the ld. CIT(A) but appeal of the assessee has also been dismissed on the ground that there was no response on behalf of the assessee. Accordingly, the appeal has been dismissed.
1.2. The ld. Counsel for the assessee instead of going into the merit of the case has submitted before us that assessee should have given an opportunity to place his case before ld. CIT(A).
1.3. The ld. D/R supports the impugned order.
We have perused the order of the CIT(A) and find that it has been passed ex party as the appellant has not responded to any of the notices. The operative portion of the order of the ld. CIT(A) is thus— The appellant had not given any argument/evidences in support of contentions made in the grounds of appeal, in view of the above and in absence of any argument/evidences from the appellant, I have no other option but to go along with the findings of the A.O. in the order appealed against, therefore, the addition of Rs.65,98,000/- is hereby sustained.
3. Going over the order it is clear that CIT(A) did not examine the documents only in the absence of any arguments or submission of the assessee. The submission of the counsel of the appellant is that assessee has to be given an opportunity to place his case before CIT(A), as order was not passed on merit rather CIT(A) confirms the order of the Assessment Year: 2017-18 Laxmi Clothing Pvt. Ltd. A.O. without giving findings of his own. Keeping in view the facts of the case and the order passed by the ld. CIT(A), and for the ends of justice we are of this view that an opportunity should be given to the assessee to place his case before the ld. CIT(A). Accordingly, the order of the ld. CIT(A) is set aside, case is restored in the file of the CIT(A) for afresh decision after hearing the assessee. Case of the assessee is remanded back to the CIT(A). We further direct the assessee that he will participate in the proceeding without taking any frivolous adjournment.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 31st December, 2024