Balaka Cold Storage Pvt. Ltd. Vs ACIT (ITAT Kolkata)
The ITAT Kolkata considered the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, for Assessment Year 2017-18. During the appellate proceedings, the assessee raised an additional legal ground challenging the validity of the assessment on the basis that the assessment order under Section 143(3) of the Income-tax Act, 1961 had been framed without a valid notice under Section 143(2) and in contravention of CBDT Instruction F. No. 225/157/2017/ITA-II dated 23.06.2017 and CBDT Instruction No. 1/2011 (F. No. 187/12/2010-IT(A-1)) dated 31.01.2011. The assessee contended that the assessment was therefore void and without jurisdiction.
The Tribunal first considered whether the additional ground could be admitted. It observed that the issue raised was purely legal, all relevant facts were already available on record, and no further factual enquiry was required. Relying on the decisions of the Supreme Court in Jute Corporation of India Ltd. v. CIT and National Thermal Power Co. Ltd. v. CIT, as well as the Calcutta High Court decision in PCIT v. Britannia Industries Ltd., the Tribunal held that a pure question of law could be raised for the first time before an appellate authority. Accordingly, it admitted the additional ground for adjudication.
