Akanksha Enterprises Private Limited Vs CIT (Appeals) (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT), Kolkata Bench, has set aside an ex-parte order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, concerning an unexplained cash deposit during the demonetization period for Akanksha Enterprises Private Limited. The Tribunal has remitted the matter back to the CIT(A) to provide the assessee a fresh opportunity of hearing, emphasizing the adherence to the principle of natural justice.
The appeal, filed by Akanksha Enterprises Private Limited for Assessment Year 2017-18, was initially delayed by 65 days. However, the Director of the assessee-company submitted an affidavit stating that the delay occurred because the company was unaware of the CIT(A)’s order due to communication being sent to an incorrect e-mail ID, despite the correct ID being provided in Form 35. Upon learning of the ex-parte order, the assessee promptly approached its authorized representative to file the appeal. Considering these circumstances, the ITAT condoned the 65-day delay.
Briefly, the assessee had filed its return of income on October 31, 2017, which was processed under Section 143(3) of the Income Tax Act, 1961, on December 28, 2019. The Assessing Officer (AO) subsequently made an addition of ₹12,48,000/- as unexplained cash deposit under Section 69A of the Act, specifically relating to the demonetization period. Following this, penalty proceedings were initiated under Section 271AAC and interest charged under Sections 234A and 234B.
