ASSISTANT COMMISSIONER OF INCOME TAX, MUMBAI V. WINNING MOVES TOYS & GAMES PVT LTD, MUMBAI

ITA 6390/MUM/2024

AI Insights

The case involves the Assistant Commissioner of Income Tax as the appellant and M/s. Winning Moves Toys & Games Pvt. Ltd. as the respondent. The dispute arose from the assessee's failure to file a return of income for the assessment year 2018-19, leading to re-assessment proceedings initiated under Section 148A of the Income Tax Act. The Assessing Officer (AO) made a best judgment assessment under Section 144, treating certain import transactions as undisclosed expenditure under Section 69C due to lack of response from the assessee. The CIT(A) later found these additions to be unjustified after the assessee provided necessary details, which the AO failed to contest. The Tribunal dismissed the revenue's appeal, supporting the CIT(A)'s decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472736 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUSHKARAJ BHANGEPATIL; DR
• Keywords: Additional evidence; Unexplained expenditure
• Section: 144; 69C

Judgement Text

" | आयकर अपीलीय अिधकरण \fा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 6390/Mum/2024 Assessment Year: 2018-19 Assistant Commissioner of Income Tax Vs M/s. Winning Moves Toys & Games Pvt. Ltd. 304, Third Floor Hub Town Viva Jogeshwari East Mumbai - 400060 [PAN: AABCW5602L] अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : None Revenue by : Shri Pushkaraj Bhangepatil, Sr. D/R सुनवाई की तारीख/Date of Hearing : 06/02/2025 घोषणा की तारीख /Date of Pronouncement: 13/02/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the revenue is preferred against the order of the NFAC, Delhi [hereinafter 'the ld. CIT(A)'] dated 07/10/2024 pertaining to AY 2018-19. 2. The grievance of the revenue reads as under:- “1. \"Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is right in deciding appeal in assessee's favour disregarding the fact that the assessee is non-filer for the year under consideration?\" 2. \"Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has right in not considering that no explanation in relation to imports made to tune of Rs.1,11,92,073/- was furnished during the proceedings u/s.148A of the Act and assessment proceedings? 3.\"The Appellant craves leave to add, amend and/or vary grounds of Appeal before or during the course of hearing.\" I.T.A. No. 6390/Mum/2024 2 3. None appeared on behalf of the assessee in spite of notice. We decide to proceed ex-parte. 4. Briefly stated the facts of the case are that the assessee is a company which has not filed its return of income for the assessment year under consideration and as per the information on Insight Portal under the category High Risk Non-filers, the AO initiated re-assessment proceedings by issuing notice u/s 148A of the Act and accordingly statutory notices were issued and served upon the assessee. The AO gave several opportunities but the assessee remained unresponsive forcing the AO to frame a best judgment assessment u/s 144 of the Act. Since the AO was in possession of the information of transactions under the PAN of the assessee amounting to Rs.1,11,92,073/- and in the absence of any details, the transactions with respect to import amounting to Rs.1,11,92,073/- was treated as assessee's own undisclosed and unexplained expenditure u/s 69C of the Act and the additions were made. 5. The assessee agitated the matter before the ld. CIT(A) and furnished necessary details as additional evidence which contained the following:- ***This space has been left blank intentionally.*** I.T.A. No. 6390/Mum/2024 3 6. The ld. CIT(A) called for the remand report vide notice dated 27/06/2024. Reminders were given on 16/07/2024, 30/07/2024, 13/08/2024 and 30/08/2024 but no response was received from the AO. Thereafter, the ld. CIT(A) proceeded by examining the factual details furnished by the assessee and after considering the details and examining the same, the ld. CIT(A) observed \"Upon perusal of those documents, it is evident that the addition made by the AO is not maintainable. Section 69C of the IT Act cannot be invoked for this kind of transaction. It is a deeming provision that deals with unexplained expenditure that is not recorded in the books of I.T.A. No. 6390/Mum/2024 4 accounts. In the present case the appellant company has submitted entire details in support of their accounts and import. When the additional evidences are forwarded, the AO is failed to submit any remand report. Hence, the AO is directed to delete this addition.\" 7. After giving thoughtful consideration to the findings of the ld. CIT(A), we are of the considered view that powers of the ld. CIT(A) are co-terminus to that of the AO and after examining the details furnished by the assessee, the ld. CIT(A) was convinced with non-application of the provision of Section 69C of the Act. This act of the ld. CIT(A) cannot be faulted with. Therefore, the effective grounds raised by the revenue are dismissed. 8. In the result, appeal of the revenue is dismissed. Order pronounced in the Court on 13th February, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 13/02/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0015ितिलिप अ\u001aेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001c / The Appellant 2. \u0015\u001dथ\u001c / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "