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Minushree Merchang es Pvt. Ltd.,17/1C, Alipo re Road,Kolka ta-700 027 -Vs.- In come Tax Officer Ward-12(4), Kolk ata
June, 15th 2012
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                     KOLKATA `B' BENCH, KOLKATA

             Before Shri Pramod Kumar (Accountant Member),
                and Shri George Mathan (Judicial Member)

                        I.T.A. No .: 30 0/ Kol. / 2012
                        Assessme nt year : 20 04-05
Minushree Merchang es Pvt. Ltd.,
17/1C, Alipo re Road,
Kolka ta-700 027                     ............................................App ellant
[PAN : AADC M 9888 Q ]

In come Tax Officer
Ward-12(4), Kolk ata                            ....................................R espo ndent

Appearances by:
Shri Sunil Chokhani, for the appellant
Shri AshokKumar Dey, for the respondent

Date of co ncluding t he hea ri ng         : June 1 3, 20 12
Date of prono unci ng the o rde r           : June 13, 2012

                                     O R D E R
Per Pramod Kumar:

       When this appeal was called out for hearing, our attention was

invited    to    the    adjou rnment       petition      dated      08.06.2012                seeking

adjou rnment the hearing for non-availability of ld. counsel. However,

having perused the petition which is available on record, we are not

inclined to adjou rn the hearing mentioned in the petition. We,

therefore, proceed to dispose of the matter on the basis of material

available on record.

2.     By way of this appeal, the assessee-appellant has challenged

correctness of learned Commissioner of Income Tax(Appeals)'s order
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dated 24 t h December, 2008, in the matter of assessment under section

144 of the Income Tax Act, 1961 for the assessment year 2004-05 on the

following grounds :-

           (1)That on the facts and circumstances of the case, learned
           CIT(A) erred in confirming the addition of Rs.50,000/- out
           of carriage inward expenses incurred by the asses see-

           (2) That on facts and circumstances of the case, learned
           CIT(A) erred in confirming the addition of Rs.24,000/- on
           account of staff salary.

           (3) That on the facts and circumstance s of the case, the
           learned CIT(A) erred in confirming the addition of
           Rs.28,36,276/- on account of sundry cr editors.

           (4) That on the facts and circumstances of the case, the non-
           compliance of the notice fixing the hearing by the Income
           Tax Practitioner could not become under the knowledge of
           the assessee-company.

3.   Briefly stated the material facts are like this. The assessee is

engaged in the bu siness of trading in iron and steel. The return of

income filed by the assessee was subjected to scrutiny assessment but

due to non-appearance by the assessee, the assessment was framed

under section 144 of the Act. In the course of assessment so framed, the

Assessing Officer disallowed carriage inward expenses and staff

salaries on ad hoc basis on the ground that expenses have increased but

there is no corresponding increase in the turnover. The Assessing

Officer also added back Rs.28,36,276/- in respect of sundry creditors

shown in the balance-sheet and treated the same as bogus sundry

creditors. In this background, return of income was filed by the

assessee declaring a total income of Rs.15,687/-, which resulted in
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                                                                                      Page 3 of 4

assessed income of Rs.29,25,960/-.Aggrieved, the assessee carried the

matter in appeal before ld. CIT(Appeals). But once again there was

apparently no appearance before the learned CIT(Appeals). The ld.

CIT(Appeals) disposed of the matter ex-parte quo the assessee and

confirmed the action of the Assessing Officer. The assessee is not

satisfied with the order of ld. CIT(Appeals) and is in appeal before us.

4.    Shri Sunil Chokhani, who claims the Director of the assessee-

company has appeared before us and submitted that notices of hearing

were duly given to the Tax Practitioner but the non-compliance was

due to carelessness of the Tax Practitioner of assessee. Shri Chokhani

apologized for non-appearance before the authorities below and

specific undertaking was given by him that the requisitions of

authorities below will now be complied with.

5.    Ld. D.R. relied upon the orders of the authorities below.

6.    We have noticed that the additions made by the Assessing Officer

are clearly un-reasonable. When the assessee does not appear before

the   Assessing   officer,   undoubtedly   the   A.O.   has         to      frame            the

assessment on the basis of material on record, but the assessment so

framed cannot be an unreasonable assessment. The addition in respect

of sundry creditors during the year treated as bogus sundry creditors

seems to be an addition which is clearly unsustainable in law and not

warranted to the facts of the case. Just because the information in

respect of creditors is not on record, all these creditors can not be

treated as income of the assessee. The Assessing Officer ou ght to have

probed the matter further. The Assessing Officer ought to have seen the
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                                                                                                Page 4 of 4

past assessment records and framed the assessment on the basis of

some reasonable presumptions. In any case, this aspect of the matter is

no longer relevant because Director of the assessee-company appearing

before us has now given an undertaking that the requ isitions of the

Assessing Officer will now be complied with, and we are of the

considered view that ends of justice will be met by ou r remitting the

matter to the file of the Assessing Officer with a direction to give yet

another       opportunity    of   hearing     to   the     assessee,       and         frame           the

assessment de novo in accordance with the law and by way of a

speaking order. We also consider it appropriate to direct the assessee

to fully cooperate with the Assessing Officer in expeditious disposal of

the appeal. Order, accordingly.

7.      In the result, the appeal filed by the assessee is allowed for

statistical purposes. Order dictated and pronounced in the open court

immediately upon conclusion of hearing today on 13 t h day of June,


           Sd/-                                                    Sd/-
     George Mathan                                               Pramod Kumar
    (Judicial Member)                                         (Accountant Member)
Kolkata, the 13 t h day of June, 2012
Copies to :     (1)   Th e app ell ant
                (2)   Th e respon dent
                (3)   CIT
                (4)   CIT(A)
                (5)   Th e D ep artment al Rep resentativ e
                (6)   Guard File
                                                                           By order etc
                                                                   Assis tant Registrar
                                                         Income Tax Appe llate Tribunal
                                                              Kolkata benches, Kolkata

Laha/Sr. P.S.
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