CLITORIS MARKETING PRIVATE LIMITED,KOLKATA vs. TRO-2, KOLKATA
What did the Tribunal hold?
The Tribunal noted the assessee's non-cooperation at various stages but found it appropriate to remand the matter back to the AO. The AO is directed to examine the issue afresh after providing the assessee with a reasonable opportunity of being heard.
What were the facts?
The assessee company failed to comply with notices issued by the Assessing Officer (AO) and summons issued to its directors. Consequently, the assessment for AY 2012-13 was completed ex parte under Section 144. The assessee's appeal before the CIT(A) was also dismissed ex parte.
What were the issues?
Whether the ex parte assessment order and the subsequent dismissal of appeal by CIT(A) should be upheld, or if the assessee should be given a fresh opportunity to present its case.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH KOLKATA
Per Sonjoy Sarma, Judicial Member:
This appeal filed by the assessee pertaining to the Assessment Year (in short „AY‟) 2012-13is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the „Act‟) by the Learned Commissioner of Income Tax (Appeals) (in short „the Learned. CIT(A)], National Faceless Appeal Centre (NFAC), Delhi, dated 15.09.2023 arising out of Assessment Order dated 17.03.2015, passed under Section 144of the Act.
The Assessee has raised the following grounds of appeal:
1. That on the facts and in the circumstances of the case, the Ld. AO erred in adding back Share Capital and Securities Premium to the tune of ₹ 1,00,00,000/- to the taxable income.
Clitoris Marketing Private Limited 2. That on the facts and in the circumstances of the case, the assessment order should be treated as null and void as it was not served within reasonable time. 3.. That the assessee craves leave to adduce further grounds on or before the hearing of the appeal.”
Brief facts of the case are that the assessee company filed its return of income for the A.Y. 2012-13 on 30.09.2012 declaring total income of ₹ „Nil‟. The case of the assessee was selected for scrutiny and followed by notice issued under Section 143(2) and 142(1) of the Act. However, the assessee failed to comply with these notices. Further, summons under Section 131 of the Act were issued to the Directors of the assessee company but they too did not respond. Consequently, the assessment was completed ex parte under Section 144 of the Act.
Dissatisfied with the above order, the assessee filed an appeal before the Learned CIT(A) though with a delay of 19 days. Despite notice being issued by the Learned CIT(A), the assessee did not appear to argue the case. Therefore, the Learned CIT(A) dismissed the appeal of the assessee sustaining the addition made by the Assessing Officer.
Aggrieved by the order of Learned CIT(A), the assessee is in appeal before this Tribunal. Despite the notice being issued form Registry regarding pendency of the appeal, the assessee failed to appear before the Tribunal leading to the matter being decided ex-parte based on material available on record and the submissions made by the Ld. DR. Upon hearing the submission of the Ld. DR and examining the facts of the case. It is noted that although the assessment order and the order of the Learned CIT(A) were passed ex parte due to non-cooperation by the assessee at the various stages of the proceedings. Considering the facts and circumstances, we find it appropriate to remand the entire matter back to the file of the Learned Assessing Officer with a direction to examining the 2 Clitoris Marketing Private Limited issue afresh after providing assessee with a reasonable opportunity of being heard. 6. Accordingly, appeal by the assessee allowed for statistical purposes and assessment order was set aside with the above direction. In terms of the above, appeal of the assessee is allowed for statistical purposes. 7. In the result, appeal of the assessee isallowed for statistical purposes. Kolkata, the 8th October, 2024.
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