DEZIRE EXPORTS,MUMBAI V. ACIT-CC-5(2), MUMBAI

ITA 3154/MUM/2025

AI Insights

The case involves Dezire Exports appealing against the order of the Learned Commissioner of Income Tax (Appeals) -53, Mumbai, which arose from an assessment under Section 143(3) of the Income-tax Act, 1961 for the assessment year 2021-22. The primary grievances of the assessee were the ex parte dismissal of their appeal and the confirmation of certain disallowances related to sales and loans and advances. The Tribunal found that the CIT(A) had not adequately addressed the merits of the case and had not provided a proper opportunity for the assessee to present their case, leading to the decision to remit the matter back for fresh consideration.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781676 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2021-2022
• Appeal Filed On: 05-05-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANNAVARAN KOSURI
• Assessee Lawyers: SAPNESH SHETH
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & MS. PADMAVATHI S, ACCOUNTANT MEMBER ITA No.3154/Mum/2025 (Assessment Year :2021-22) Dezire Exports 206, 2nd Floor Tulsi Building Somnath Mahadev ni Sheri, Mahidharpura Surat- 395 003 Vs. Assistant Commissioner of Income Tax, Central Circle- 5(2), Mumbai PAN/GIR No.AANFD5793N (Appellant) .. (Respondent) Assessee by Shri Sapnesh Sheth, Adv. Revenue by Shri Annavaran Kosuri, Sr. AR Date of Hearing 03/07/2025 Date of Pronouncement 29/09/2025 आदेश / O R D E R PER AMIT SHUKLA (J.M): This appeal has been preferred by the assessee against the order dated 27.03.2025, passed by the Learned Commissioner of Income Tax (Appeals)–53, Mumbai [hereinafter referred to as “Ld. CIT(A)”], arising from the assessment framed under Section 143(3) of the Income-tax Act, 1961 (“the Act”) for the assessment year 2021–22. 2. In the grounds of appeal, the assessee has challenged two aspects of the impugned order. The first grievance is that Printed from counselvise.com ITA No.3154/Mum/2025 Dezire Exports 2 the appeal has been dismissed ex parte by the Ld. CIT(A) without adjudication on merits. The second pertains to the confirmation of disallowances, namely: (i) disallowance of sales of ₹9,58,385/–, being 0.5% of the turnover; and (ii) disallowance of loans and advances of ₹38,60,684/–, computed at 3% of the total figure. 3. The record reveals that the Ld. CIT(A) had issued four notices, the chronology of which finds mention at page 2 of the impugned order. It has been explained that while the first two notices were not received by the assessee, the last two notices were admittedly received but afforded very limited time for compliance. As a result, the assessee could not effectively present its case. Nevertheless, the Ld. CIT(A) dismissed the appeal and confirmed the assessment in a summary manner without dealing with the merits of the matter. 4. Before us, the learned counsel for the assessee submitted that such disposal amounts to denial of proper opportunity of being heard. The learned Departmental Representative, with fairness, did not object to the matter being restored to the file of the Ld. CIT(A) for fresh consideration. 5. Having considered the submissions and upon perusal of the material placed on record, we are of the view that the approach of the Ld. CIT(A) in summarily affirming the assessment order, without dealing with the grounds raised on merits, cannot be sustained. The first appellate authority is Printed from counselvise.com ITA No.3154/Mum/2025 Dezire Exports 3 obliged to dispose of an appeal by way of a reasoned and speaking order, and in doing so, must ensure that the principles of natural justice are duly observed. 6. In these circumstances, and in the larger interest of justice, we deem it appropriate to set aside the impugned order and remit the entire matter to the file of the Ld. CIT(A). The Ld. CIT(A) shall re-adjudicate the appeal afresh, in accordance with law, after granting due and effective opportunity of hearing to the assessee, and shall render findings on each ground raised before him. 7. We make it clear that no opinion has been expressed by us on the merits of the disallowances, which are left open for the Ld. CIT(A) to decide. The assessee is directed to extend full cooperation in the appellate proceedings to enable expeditious disposal. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 29th September, 2025. Sd/- (PADMAVATHY S) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 29/09/2025 KARUNA, sr.ps Printed from counselvise.com ITA No.3154/Mum/2025 Dezire Exports 4 Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// Printed from counselvise.com "