BEAUTIFUL ELECTRONICS AND COMPUTERS SYSTEMS PVT. LTD.,MUMBAI V. INCOME TAX OFFICER, MUMBAI, MUMBAI

ITA 3576/MUM/2024

AI Insights

The case involves M/s. Beautiful Electronics and Computers Systems Pvt. Ltd., the appellant, contesting an order from the National Faceless Appeal Center/Commissioner of Income Tax (Appeals), which affirmed an addition of Rs. 1,18,75,399 as long-term capital gain for the Assessment Year 2014-15. The assessee initially failed to comply with multiple hearing opportunities provided by the Commissioner, leading to the dismissal of their appeal. Subsequently, the assessee did not appear for the tribunal hearing, resulting in an ex-parte decision by the tribunal. The tribunal noted the lack of evidence of notice to the assessee for the hearing and remanded the case for a fresh decision with proper notice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 397076 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AAFAQUI; LD.
• Keywords: Set aside; Opportunity of being heard
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No.3576/M/2024 Assessment Year: 2014-15 M/s. Beautiful Electronics and Computers Systems Pvt. Ltd. Diamond House, Ground Floor, 9 Vatcha Gandhi Marg Gamdevi, 400007. PAN: AAACB9229M Vs. Income Tax Officer, Ward 3(1)(2), Room No. 666, 06th Floor, Aaykar Bhavan, 400020. (Appellant) (Respondent) Present for: Assessee by : None Revenue by : Shri Leyaqat Ali Aafaqui, Ld. D.R. Date of Hearing : 16.04.2025 Date of Pronouncement : 27.05.2025 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 24-05-2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2014-15. ITA No.3576/MUM/2024 M/s. Beautiful Electronics and Computers Systems Pvt. Ltd. 2 2. Brief facts relevant for adjudication of the instant appeal are that in the instant case, the Assessing officer (AO) vide assessment order dated 06.12.2019 u/s. 143(3) r.w.s 147 of the Act worked out the long terms capital gain of Rs. 1,18,75,399/- and accordingly made the addition of the said amount. 3. The Assessee being aggrieved challenged the said addition/disallowance by filing first appeal before the ld. Commissioner, however, in spite of affording various opportunities by the ld. Commissioner, the assessee made no compliance. Therefore, in the constrained circumstances, the ld. Commissioner dismissed the appeal of the Assessee, affirming the addition of Rs. 1,18,75,399/-. 4. The Assessee being aggrieved preferred this appeal. However, in spite of sending notice to the Assessee for date of hearing on 16.05.2025, the Assessee neither appeared nor filed nay adjournment application and therefore we are constrained to decide this appeal as ex-parte by hearing the Ld. DR and perusing the material available on record. 5. Having heard the Ld. DR giving thoughtful consideration to the peculiar facts and circumstances of the case as well as the impugned order, we observe that though the ld. Commissioner has mentioned at page no. 28 of the impugned order that in spite of availing multiple opportunity of hearing, the appellant miserably failed to file any satisfactory compliance, however, from the impugned order, it nowhere appears “as to whether any notice to the Assessee for the date of hearing, has ever been given by the ld. Commissioner or not” and therefore considering this particular aspect, we are inclined to set aside the impugned order and consequently remanding the instant case to the file of the ld. ITA No.3576/MUM/2024 M/s. Beautiful Electronics and Computers Systems Pvt. Ltd. 3 Commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the assessee. 6. We clarify that in case of subsequent default, the Assessee shall not be entitled for any leniency. 7. Thus, the case is remanded to the file of the ld. Commissioner, accordingly. 8. In the result, appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open court on 27.05.2025. Sd/- Sd/- (PRABHASH SHANKAR) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER * Anandi.Nambi, Steno Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. "