M/S PRAN COMMERCIAL PVT LTD,KOLKATA vs. I.T.O WD 2(1),KOLKATA, KOLKATA

PDF · subscribers
ITA 2040/KOL/2013Status: DisposedITAT Kolkata03 August 2016AY 2005-064 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and remanded the issue to the AO for fresh consideration. The AO was directed to provide the assessee an opportunity to present their case de novo.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed ex-parte as they failed to appear. The assessee claimed that they did not receive notices of hearing due to a change in their place of business post-amalgamation.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex-parte without proper service of notice, and whether the AO should reconsider the assessment in light of subsequent developments.

Which sections of the Income-tax Act were involved?

Section 144,Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENCH ‘A’ KOLKATA

Before: Hon’ble Shri N.V.Vasudevan, JM & Shri M.Balaganesh, AM ]

ORDER PER N.V.VASUDEVAN, JM:

This is an appeal by the assessee against the order dated 04.04.2013 of CIT(A) XX, Kolkata, relating to AY 2005-06.

2.

The Assessee is a company. For A.Y.2005-06 the assessee filed return of income declaring total income of Rs. Nil. Order of assessment u/s 144 of the Act dated 28.12.2007 was passed by the AO wherein he determined the total income of assessee at Rs.21,34,466/-. The Assessee had claimed income from agriculture of Rs.14,45,886/- which was treated by the AO as income from other sources for want of proof that the income in question was derived from agriculture. Besides the above, certain other additions were made in the assessment concluded u/s 144 of the Act.

3. Aggrieved by the order of AO the assessee filed appeal before CIT(A). It appears that CIT(A) fixed the appeal for hearing on 04.02.2010, 16.03.2010, 23.03.2011, 19.05.2011, 23.11.2012, 17.12.2012 & 12.02.2013 respectively. The order of CIT(A) is silent as to whether notice of hearing for the above dates of hearing were served on -M/s.Pran Commercial Pvt. Ltd. A.Y.2005-06 the assessee or not. According to the CIT(A) none appeared on behalf of the Assessee and therefore the CIT(A) proceeded to dismiss the appeal of assessee ex-parte and confirmed the order of AO.

4.

Aggrieved by the order of CIT(A) the assessee has preferred the present appeal before the Tribunal.

5.

One of the grounds raised before the tribunal is that no notice of hearing of appeal before CIT(A) as stated in the order of CIT(A) was ever served on the assessee. The ld. Counsel for the assessee brought to our notice that the assessee got amalgamated with M/s. Viconic Vyapar Ltd., pursuant to the order of the Hon’ble Calcutta High Court of CP No.402 of 2006 dated 09.01.2007. It was further brought to our notice that pursuant to the amalgamation the assessee has changed its place of business from Kolkata to Raipur, State of Chattisgarh. The appeal before CIT(A) against the order of AO dated 28.12.2007was filed on 25.01.2008 and thereafter change of place of business of the assessee had taken place. It is only in this circumstances that the assessee could not attend the hearing before CIT(A). The ld. Counsel for the assessee prayed that order of CIT(A) may be set aside. It was also prayed that since the assessment was completed u/s 144 of the Act, the assessee could not explain before AO its source of income as one from agriculture. It was also brought to our notice that there was a search in the group companies of the Assessee at Raipur. Pursuant to the search order u/s 153A of the Act for A.Y.2005-06 was passed on 20.03.2013 in which the total income of the assessee was assessed only at Rs.17,660/-. It was prayed that all the above facts and also source of agricultural income need to examined by the AO and therefore order of CIT(A) be set aside and the issue raised before CIT(A) on merits by the assessee should be directed to be considered by the AO afresh. The ld. DR relied on the order of CIT(A).

6.

After considering the rival submissions and accepting the explanations and reasons given by the ld. Counsel for the Assessee, we set aside the order of CIT(A) -M/s.Pran Commercial Pvt. Ltd. A.Y.2005-06 and remand the issue raised by the assessee before CIT(A) for fresh consideration by the AO in the light of the specific arguments and search conducted in the case of the assessee de novo. The AO will give opportunity to the assessee before making assessment de novo. For statistical purposes the appeal of the assessee is treated as allowed. In view of the above conclusion, the other grounds raised by the assessee in the grounds of appeal are not being adjudicated.

7.

In the result the appeal by the assessee is treated as allowed for statistical purposes. Order pronounced in the Court on 03.08.2016.

Sd/- Sd/- [M.Balaganesh ] [ N.V.Vasudevan ] Accountant Member Judicial Member Dated : 03.08.2016. [RG PS] Copy of the order forwarded to: 1.M/s. Pran Commercial Pvt. Ltd., M/s Rajesh Mohan & Associates, Bagati House, 5th Floor, Unit No.18, 34, Ganesg Chandra Avenue, Kolkata-700013.

2. I.T.O., Ward-2(1), Kolkata.

3.

CIT(A)-XX, Kolkata 4. CIT-I, Kolkata.

More judgments on Section 153A

All 18,957 judgments and leading authorities on Section 153A →

Recent GST High Court judgments

Search GST case law →