Tribunal reinstates ex-parte order, emphasizes review of enquiries before finalizing decisions.

The Tribunal acknowledged a mistake in the order and restored an ex-parte order by the Commissioner of Income Tax, Kolkata-III under section 263, sending the matter back for fresh adjudication. The Tribunal dismissed the Miscellaneous Application, emphasizing the need for the Commissioner to review arguments on the adequacy of enquiries before finalizing the order under section 263.

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Issues:
1. Rectification of mistake apparent on record in the order of the Tribunal dated 01.10.2019 in ITA No. 1518/Kol/2015 for AY 2009-10.
2. Restoration of an ex-parte order passed by the ld. Commissioner of Income Tax, Kolkata-III, Kolkata u/s 263 of the Income Tax Act, 1961.
3. Adequacy of enquiries conducted with regard to rising of share capital in post search assessment proceedings culminating in an assessment order u/s 153A r.w.s. 143(3) of the Act for the same assessment year.

Analysis:

1. The Appellate Tribunal received a Miscellaneous Application from the assessee, claiming a mistake apparent on record in the Tribunal's order dated 01.10.2019 for AY 2009-10. The application highlighted that subsequent to a notice under section 263, a search action was conducted against the assessee, leading to centralization of assessment records and the completion of the order u/s 153A/143(3) for the relevant assessment year. The Tribunal acknowledged the restoration of an ex-parte order by the Commissioner of Income Tax, Kolkata-III, Kolkata, under section 263, citing a violation of natural justice. The Tribunal decided to send the matter back to the Commissioner for fresh adjudication, rejecting the argument that the proceedings were time-barred.

2. The assessee contended in the Miscellaneous Application that sufficient enquiries regarding the share capital were carried out in subsequent post search assessment proceedings, resulting in the assessment order u/s 153A r.w.s. 143(3) of the Act on 23.03.2015. The assessee argued that the order passed by the Commissioner of Income Tax, Kolkata-III, Kolkata under section 263 was legally flawed as there was no apparent mistake on record in the Tribunal's order dated 01.10.2019. The Tribunal clarified that the adequacy of enquiries conducted in the post search proceedings was not under its consideration, advising the Commissioner to review these arguments before issuing the order u/s 263 dated 28.03.2013. Consequently, the Miscellaneous Application was dismissed for lacking merit.

3. Ultimately, the Tribunal dismissed the Miscellaneous Application on 22nd January 2020, emphasizing that the Commissioner of Income Tax, Kolkata-III, Kolkata should consider the arguments regarding the adequacy of enquiries in the subsequent proceedings before finalizing the order under section 263.

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