Appeal against assessment orders for the assessment years 2011-12 and 2016-17 by Shiv Edibles Limited

Case Name:

Shiv Edibles Limited vs. The ACIT, Circle-1, Kota

Key Takeaways:

1. The appeals were filed against assessment orders for the assessment years 2011-12 and 2016-17.
2. The appeals raised various grounds, including the validity of the action taken under section 147 (of Income Tax Act, 1961), the limitation period for issuing notice under section 148 (of Income Tax Act, 1961), the ex-parte order passed by the ld. CIT (A), and the additions made by the AO under section 68 (of Income Tax Act, 1961) and disallowances of expenses.
3. The appeals were delayed by two days, and the assessee filed an application for condonation of delay, which was granted by the

Case Synopsis:

The appeals were directed against the assessment orders passed under section 143(3) (of Income Tax Act, 1961) read with section 147 (of Income Tax Act, 1961) of the IT Act, 1961.

In the first appeal (ITA No. 445/JP/2023), the assessee raised several grounds, including challenging the jurisdiction of the action taken under section 147 (of Income Tax Act, 1961), the limitation of the notice issued under section 148 (of Income Tax Act, 1961), and the ex-parte order passed by the ld. CIT (A) without affording adequate opportunity of being heard. The assessee also challenged the addition made under section 68 (of Income Tax Act, 1961) of the Act on account of alleged unexplained amount received from M/s. Shree Ram Trading Company and the levy of interest under sections 234B and 234C.

The Tribunal considered the rival submissions and the material on record. It noted that the ld. CIT (A) had passed an ex-parte order due to the non-compliance of notices and non-submission of documents by the assessee. The Tribunal set aside the ex-parte order and restored the matter back to the file of the ld. CIT (A) for fresh adjudication after providing a reasonable opportunity of being heard to the assessee. The assessee was granted one more opportunity to represent its case and file necessary documents/evidences. If the assessee failed to appear before the ld. CIT (A), the appeal could be decided based on the material available on record.

In the second appeal (ITA No. 436/JP/2023) for the assessment year 2016-17, the grounds raised by the assessee were similar to the grounds raised in the first appeal. The Tribunal followed the same reasoning as in the first appeal and set aside the ex-parte order of the ld. CIT (A) and restored the matter back to his file for decision afresh after affording a reasonable opportunity to the assessee.