Rajal Lefin & Commercial Pvt. Ltd. Vs ITO (ITAT Kolkata)
Cryptic Section 68 Addition of ₹1.45 Cr Remanded – Non-Speaking Order Set Aside ITAT Grants Assessee Fresh Opportunity
AO framed assessment u/s 143(3) on 23.12.2019, making an addition of ₹1.45 crore u/s 68 (unexplained cash credits). AO held that the assessee failed to prove necessary ingredients of Section 68 despite several opportunities. The order was termed as cryptic, with little reasoning beyond stating non-compliance. CIT(A) did not examine the merits, dismissing appeal solely due to 17-day delay.
Tribunal’s Observations
- The 105-day delay before ITAT was supported by affidavit showing bona fide reasons, hence condoned.
- Similarly, a 17-day delay before CIT(A) should not have been a ground for dismissing the appeal without considering merits.
- Since assessee had made partial compliance during assessment proceedings, and the order of AO was non-speaking, the matter deserved fresh adjudication.
- Principle of natural justice required that the assessee be given reasonable opportunity to present its case.
- ITAT set aside the order of CIT(A).
- Restored matter back to AO for fresh decision on merits after granting proper opportunity of hearing.
Small procedural delays (like 17 days) should not deny substantive justice.AO must pass speaking orders with reasoning, not mere conclusions. Section 68 additions require proper inquiry into identity, creditworthiness, and genuineness-not mere rejection of submissions.
