DARASHAW KEKI MEHTA ,MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 2(1)(1), MUMBAI

ITA 2806/MUM/2025

AI Insights

The case involves Darashaw Keki Mehta, the appellant, contesting an ex-parte order from the CIT(A)/National Faceless Appeal Centre (NFACT) for the assessment year 2016-17. The appellant argued that the CIT(A) passed the order without discussing the merits of the case and failed to consider the complete statement of facts provided at the time of filing the appeal. The appellant's representative acknowledged the non-compliance with five show cause notices due to inadvertence by their Chartered Accountant. The CIT(A) had previously dismissed the appeal citing non-prosecution, which the appellant contested, referencing decisions that supported adjudication on merits despite non-compliance. The revenue argued that sufficient opportunities were provided, and non-compliance was not excusable. The Tribunal found the CIT(A)'s order inconsistent with the mandate of section 250(6) of the Income Tax Act and restored the matter for fresh adjudication while imposing a cost on the appellant for negligence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668730 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2016-2017
• Other Referred Cases: Ms. Swati Pawa Vs DCIT (2019) 103 taxmann.com 300 (Delhi-Trib), CIT Vs Premkumar Arjundas Luthra (HUF) (2016) 69 taxmann.com 407 (Bom)
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ANNVARAM KOSURI
• Assessee Lawyers: JAY BHANSALI
• Keywords: Sale consideration of property below Jantri Value
• Section: 6

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No. 2806/MUM/2025 (AY : 2016-17) (Physical hearing) DarashawKeki Mehta 1205-06 Regent Chambers, Plot No. 208, Nariman Point, Mumbai – 400021. [PAN No. AACPM1850C] Vs DCIT, Central Circle-2(1)(1), Aayakar Bhawan, M.K. Road, Churchgate, Mumbai– 400020. Appellant / Assessee Respondent / Revenue Assessee by Sh. Jay Bhansali Advocate Revenue by Sh. Annvaram Kosuri Sr DR Date of hearing 24.06.2025 Date of pronouncement 24.06.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by assessee is directed against the ex-parte order of ld. CIT(A) / National Faceless Appeal Centre (NFACT) dated 15.04.2025 for A.Y. 2016-17. 2. Rival submissions of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that ld. CIT(A) passed ex-parte order without discussing merits of the case. The assessee at the time of filing appeal furnished complete statement of facts, necessary for adjudication of the appeal. However, such fact is not considered by ld. CIT(A). At the time of hearing, the ld. AR of the assessee was confronted with the fact about non-compliance by five show cause notices under section 250 of Income Tax Act, issued by ld. CIT(A), the ld. AR of the assessee would submit that assessee engaged Sara & Associates, Chartered Accountant to represent the assessee before ld. CIT(A). The CA of the assessee inadvertently missed out necessary compliance. The CA of the ITA No. 2806/Mum/2025 Darashaw Keki Mehta 2 assessee has given in writing about such non-compliance which was unintentional. The ld. AR of the assessee submits that assessee may be given one more opportunity to contest the case on merit. The ld. AR of the assessee submits that ld. CIT(A) has no jurisdiction to dismiss appeal on non- prosecution, rather he has to adjudicate the appeal on merit as per sub- section 6 of section 250 of the Income Tax Act. To support his submission, the ld. AR filed letter dated 23.06.2025 written by Rajesh Agarwal, Chartered Accountant from Sara & Associates Chartered Accountant. The ld. AR of the assessee also relied upon the decision of Tribunal in Ms. Swati Pawa Vs DCIT (2019) 103 taxmann.com 300 (Delhi-Trib) and in CIT Vs Premkumar Arjundas Luthra (HUF) (2016) 69 taxmann.com 407 (Bom). 3. On the other hand, learned Senior Departmental Representative (ld. Sr. DR) for the revenue submits that more than sufficient opportunity was allowed by ld. CIT(A) has recorded in para 3.1 of order of ld. CIT(A). The ld. CIT(A) five opportunities to the assessee for making compliance. Mere filing statement of fact are not sufficient, if they are not supported with relevant evidence. The assessee does not deserve any leniency for further opportunity. 4. We have considered the rival submissions of both the parties and perused the order of lower authorities carefully. We find that appeal of assessee was dismissed in ex-parte order without discussing merits of the case. No doubt that order of ld. CIT(A) is not inconsonance with the mandate of section ITA No. 2806/Mum/2025 Darashaw Keki Mehta 3 250(6) of Income Tax Act, still, we find that assessee was negligent in making timely compliance. The assessee has given his own email on Form 35 before ld. CIT(A) and now taking shelter of letter issued by his Chartered Accountant. Considering the overall facts and circumstances of the case and negligence of assessee, the assessee is burden with the cost of Rs. 5,000/- which shall be deposited in Bombay High Court legal aid and advice Committee / Board. Further, considering the fact that order of ld. CIT(A) is ex-parte without adjudicating various issue on merit, therefore, matter is restored back to the file of ld. CIT(A) to adjudicate all the grounds of appeal afresh. Needless to direct that before passing the order of ld. CIT(A) shall allow reasonable opportunity to the assessee. The assessee is further direct to more vigilant and not to take adjournment without any valid reason. 5. In the result, the appeal of assesseeis allowed for statistical purpose. Order pronounced in the open Court on 24/06/2025. Sd/- PRABHASH SHANKAR ACCOUNTANT MEMBER Sd/- PAWAN SINGH JUDICIAL MEMBER MUMBAI, Dated:24/06/2025 Biswajit ITA No. 2806/Mum/2025 Darashaw Keki Mehta 4 Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order Assistant Registrar ITAT, Mumbai "