AMBEKAR BEVERAGE AND FOOD PRIVATE LIMITED ,MUMBAI V. ITO WARD 6(1)(2), MUMBAI

ITA 1655/MUM/2025

AI Insights

The case involves Ambekar Beverages and Food Pvt. Ltd., which appealed against the order of the Learned Commissioner of Income-tax (Appeals) and the Assessing Officer's initial assessment order under section 144 of the Income-tax Act, 1961. The assessee contested the addition of Rs.83,37,352 as unexplained cash credit under section 68, citing the death of a male director and the incapacity of a female director to attend proceedings or appoint a legal counsel. The Tribunal found the reasons for the delay in filing the appeal reasonable and admitted the appeal for adjudication, ultimately deciding to remand the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312387 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHEKHAR L. GAJBHIYE
• Assessee Lawyers: BHUPENDRA SHAH
• Keywords: Condonation of delay; Unexplained cash credit; Principle of natural justice; Non compliance
• Section: 144; 154; 68

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE MS. KAVITHA RAJAGOPAL, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 1655/MUM/2025 (निर्धारण वर्ा / Assessment Year :2015-16) Ambekar Beverages and Food Pvt. Ltd. 129, 5th Floor, 501-502, Shree Krupa, M. B. Raut Road, Shivaji Park, Dadar West, Mumbai, Maharashtra-400028 v/s. बिधम ITO 6(1)(2), Mumbai Aayakar Bhavan, M.K. Road, Mumbai-400020 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAKCA7151R Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee by: Shri Bhupendra Shah रधजस्व की ओर से /Revenue by: Shri Shekhar L. Gajbhiye सुिवधई की िधरीख / Date of Hearing 24.04.2025 घोर्णध की िधरीख/Date of Pronouncement 30.04.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeals), Mumbai/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 20.09.2023 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2015-16. P a g e | 2 ITA No. 1655/Mum/2025 A.Y. 2015-16 Ambekar Beverage and Food Private Ltd. 2. The assessee has raised the following grounds of appeal: “1. In the facts and the circumstances of the case and in law, the learned AO erred in passing the order u/s. 144 by overlooking the fact that the male director had passed away and the female director is not capable of attending the proceedings and due to her condition she was unable to appoint a legal counsel to attend the assessment proceedings on her behalf. 2. In the facts and the circumstances of the case and in law, the learned AO erred in adding Rs.83,37,352/- as unexplained cash credit u/s. 68 by overlooking the fact that the ledger account of the Appellant shows opening balance of loans at Rs.35,72,764/- and closing balance at Rs.73,94,202/- Without prejudice to the above: 3. In the facts and circumstances of the case and in law the additions should have been Rs.38,21,438/- (i.e, 7394202-3572764). This is a mistake apparent from record for which rectification u/s. 154 shall be filed by the Appellant. 4. In the facts and circumstances of the case and in law, the Assessing Officer also initiated penalty u/s. 271(1)(b) & (c) and charged interest u/s. 234A, B, C & D. 5. In the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (A) erred in confirming the said additions. [B] Relief Prayed: The Appellant therefore prays follows, 1. To quash the order passed u/s 144. 2. To delete the addition of Rs. 83,37,352/- treated as unexplained cash credit u/s. 68. 3. To rectify the amount of addition to Rs. 38,21,438/- instead of Rs. 83,37,352/-. 4. To delete the interest charged u/s 234A, B, C and D & initiation of penalty u/s 271(1)(b), and 271(1)(c).” 3. At the outset, we note that the present appeal is delayed by 424 days. The assessee has filed an affidavit, along with supporting documentary evidence, to explain this delay. The reasons submitted are that the director of the assessee was unaware of the appellate order, and the previous consultant failed to inform the assessee to file the appeal before this Tribunal. It is further stated that a new consultant has now been appointed to represent the assessee . P a g e | 3 ITA No. 1655/Mum/2025 A.Y. 2015-16 Ambekar Beverage and Food Private Ltd. On perusal of the facts stated in the assessee's affidavit, we find the explanation provided for the delay in filing the appeal to be reasonable. Hence, we hereby condone the delay of 424 days and admit the appeal for adjudication. 4. Brief facts of the case are that the assessee filed its return declaring loss of Rs. 26,76,382/- on 30.09.2015. The case was subsequently selected for scrutiny and Ld. Assessing Officer (Ld. AO) issued various notices to the assessee. However, there was no compliance by the assessee to these notices. As a result, Ld. AO proceeded to pass the assessment order u/s 144 of the Act dated 20.11.2012 determining the total income at Rs. 56,60,970/- . 5. Aggrieved by the order of the Ld. AO, the assessee preferred an appeal before the Ld. CIT(A). Ld. CIT(A) issued notices for hearing to the assessee on several dates, viz. 27.01.2021, 13.06.2023, 27.06.2023, and 23.08.2023. However, the assessee failed to make any compliance or submit the requisite written submissions and documents. Accordingly, Ld. CIT(A) dismissed the assessee's appeal exparte. 6. Being aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal. The Learned Authorised Representative (Ld. AR) has submitted before us that the reasons detailed in the affidavit for condonation of delay in filing the present appeal also explain the reasons for non compliance before the Ld. CIT(A) and the Ld. AO. Therefore, the Ld. AR has requested that the matter be remanded back to the Ld. AO for fresh consideration. P a g e | 4 ITA No. 1655/Mum/2025 A.Y. 2015-16 Ambekar Beverage and Food Private Ltd. The Learned Departmental Representative (Ld. DR) has not controverted the proposition put forth by the Ld. AR. 7. In the interest of natural justice and to provide the assessee with a fair opportunity, we deem it appropriate to restore the matter to the file of the Ld. AO for fresh adjudication on merits. Ld. AO is directed to provide due opportunity to the assessee to present its case. The assessee is also directed to ensure complete and timely compliance before Ld. AO. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 30.04.2025. Sd/- Sd/- KAVITHA RAJAGOPAL RENU JAUHRI (न्यधनयक सदस्य/JUDICIAL MEMBER) (लेखधकधर सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai दिन ुंक /Date 30.04.2025 अननक ेत स ुंह र जपूत/ स्टेनो आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यानित प्रनत //True Copy// P a g e | 5 ITA No. 1655/Mum/2025 A.Y. 2015-16 Ambekar Beverage and Food Private Ltd. आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "