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Income Tax Appellate Tribunal - Kolkata

Ncba Exports Pvt. Ltd., Kolkata vs I.T.O., Ward - 11(2), Kolkata, Kolkata on 14 June, 2023

                                            ITA No. 141/KOL/2023
                                          Assessment Year: 2017-2018
                                              NCBA Exports Pvt. Limited
      IN THE INCOME TAX APPELLATE TRIBUNAL,
               'SMC' BENCH, KOLKATA

      Before Dr. Manish Borad, Accountant Member
                           &
          Shri Sonjoy Sarma, Judicial Member

                I.T.A. No. 141/KOL/2023
               Assessment Year: 2017-2018

NCBA Exports Pvt. Limited,.....................Appellant
C/o. Subash Agarwal & Associates,
Advocates,
Siddha Gibson, 1, Gibson Lane,
Suite-213, 2 n d Floor, Kolkata-700069
[PAN: AABCN0483A]
      -Vs.-
Income Tax Officer,................................Respondent
Ward-11(2), Kolkata,
Aayakar Bhawan,
P-7, Chowringhee Square, Kolkata-700069

Appearances by:
Shri Siddharth Agarwal, A.R., appeared on behalf of the
assessee
Shri Vijay Kumar, Addl. CIT, appeared on behalf of the
Revenue

Date of concluding the hearing : April 11, 2023
Date of pronouncing the order : June 14 t h , 2023

                           O R D E R

Per Dr. Manish Borad, Accountant Member:-

This appeal at the instance of assessee for assessment year 2017-18 is directed against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 31.01.2023, which is arising out of the order under section 143(3) of 1 ITA No. 141/KOL/2023 Assessment Year: 2017-2018 NCBA Exports Pvt. Limited the Act dated 26.12.2019 framed by the ITO, Ward-11(2), Kolkata.

2. The grounds of appeal raised by the assessee read as under:-

(1) For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in passing the order ex-parte without providing proper opportunity of (2) For that on the facts and in the circumstances of the case, the Ld. CIT(A) grossly erred in confirming the addition of Rs.4,03,349/- made by the A.O. on account of alleged reduction in net profit inspite of substantial decreased turnover by invoking the provisions of sec. 145(3) of the Act.

(3) For that on the facts and in the circumstances of the case, the Ld. C1T(A) grossly erred in confirming the action of the A.O. in rejecting the books of accounts u/s 145(3) and estimating the net profit as per best judgment.

(4) For that on the facts and in the circumstances of the case, the Ld. CIT(A) grossly erred in confirming the action of the A.O in applying the net profit rate @ 1.09%.

(5) For that on the facts and in the circumstances of the case, the Ld. CIT(A) ought to have considered that without pointing out any specific defect, books of accounts cannot be rejected merely on the ground of reduction of profit.

3. We have heard the rival contentions and perused the relevant material placed on record. We note that in the peculiar set of facts in the present case before us, relevant documentary evidences are placed on record. However, detailed enquiry to examine the book results declared by the assessee-company has not been undertaken both at the assessment level and at the 1 s t Appellate stage. Further ld. Counsel has pleaded to set 2 ITA No. 141/KOL/2023 Assessment Year: 2017-2018 NCBA Exports Pvt. Limited aside the matter, wherein assessee will make all the necessary submissions for its claim.

4. We find that the ld. 1st Appellate Authority has dismissed the appeal of the assessee for want of prosecution as assessee failed to appear on the date of hearings. Considering the prayer of the ld. Counsel for the assessee and in the interest of justice and fair to both the parties, we set aside the impugned order of ld. CIT(Appeals) and restore the issues to the file of ld. CIT(Appeals) for fresh adjudication on due consideration of submission to be filed by assessee for which reasonable opportunity of being heard should be granted.

5. In the result, the appeal of the assessee is treated as allowed for statistical purposes.

Order pronounced in the open Court on 14 t h June, 2023.

          Sd/-                                Sd/-
     (Sonjoy Sarma)           (Manish Borad)
     Judicial Member        Accountant Member
      Kolkata, the 14 day of June, 2023
                     t h

Copies to :(1) NCBA Exports Pvt. Limtied, C/o. Subash Agarwal & Associates, Advocates, Siddha Gibson, 1, Gibson Lane, Suite-213, 2 n d Floor, Kolk ata-700069 (2) Income Tax Off icer, W ard-11(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 (3) CIT(Appeals), National Faceless Appeal Centre (NFAC), Delhi;

Assessment Year: 2017-2018 NCBA Exports Pvt. Limited (4) Commissioner of Income Tax- ; (5) The Depar tmental Representative (6) Guard File TRUE COPY By order Assistant Registr ar, Income Tax Appell ate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. 4