ESSAR STEEL METAL TRADING LIMITED ,MUMBAI V. DCIT -6(1)(1), AAYAKAR BHAVAN MUMBAI

ITA 3684/MUM/2025

AI Insights

The case involves Essar Steel Metal Trading Limited appealing against the order of the National Faceless Appeal Centre (NFAC), Delhi, which was passed under section 250 of the Income-tax Act, 1961 for the Assessment Year 2020-21. The initial assessment was completed by the Learned Deputy Commissioner of Income-tax under section 143(3) within a short span of 20 days, during which the assessee claimed not to have received sufficient opportunity to represent its case. The CIT(A) had granted multiple opportunities of hearing, but due to a medical emergency involving the assessee's consultant, further representation was not possible. The tribunal noted the procedural lapses and the hurried nature of the assessment and decided to restore the matter to the CIT(A) for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714681 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RITESH MISRA
• Assessee Lawyers: TARANG MEHTA
• Keywords: Opportunity of being heard; Additional evidence; Reasonable cause; Corroborative evidences
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E”, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA Nos 3684/Mum/2025 (Assessment Yeas: 2020-21) Essar Steel Metal Trading Limited (earlier known as Edwell Metal and Trading Limited), Essar House, 11, KK Marg, Tulsiwadi, Mahalaxmi, Mumbai-400 034 PAN: AABCE4851F vs DCIT, Circle 6(1)(1), Mumbai Room No.563B 5th Floor, Aayakar Bhavan Maharishi Karve Road, Mumbai- 400 020 APPLICANT RESPONDENT Assessee by : Shri Tarang Mehta Respondent by : Shri Ritesh Misra, CIT DR Date of hearing : 04/08/2025 Date of pronouncement : 06/08/2025 O R D E R Per Anikesh Banerjee (JM): The instant appeal of the assesse is filed against the order of the National Faceless appeal Centre (NFAC), Delhi [in short, ‘the Ld. CIT(A)] passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) for Assessment Year 2020-21, date of order 11/03/2025. The impugned order emanated from the order of the Learned Deputy Commissioner of Income-tax, Circle 6(1)(1), Mumbai (in short, “the Ld. AO”) passed under section 143(3), date of order 30/09/2022. Printed from counselvise.com 2 ITA 3684/Mum /2025 Essar Steel Metal Trading Limited 2. We have heard the rival submissions and perused the material available on record. It is observed that the assessment in the present case was completed by the Ld. AO within a very short span of 20 days. It is not in dispute that the assessee did not receive sufficient opportunity to properly represent its case during the assessment proceedings. The assessment was framed under section 143(3) of the Act, wherein additions were made under various heads. 3. The assessee preferred an appeal before the Ld. CIT(A), and it is noted that the Ld. CIT(A) had granted the assessee a reasonable opportunity of hearing on multiple occasions. The Ld. AR submitted that the assessee’s consultant, Chartered Accountant Shri Narendra Baheti, was representing the matter and had filed adjournment petitions before the Ld. CIT(A). However, due to a medical emergency involving his wife, the consultant was unable to continue representing the assessee during the appellate proceedings. During the course of hearing before us, the Ld. AR filed an affidavit sworn before a Notary Public on 22/07/2025, wherein the said Chartered Accountant affirmed his inability to attend the appellate proceedings before the Ld. CIT(A) owing to his wife’s medical condition. The relevant medical documents have also been annexed with the said affidavit. 4. The Ld. AR further submitted that during the assessment stage, due to the change in jurisdiction from the Jurisdictional Assessing Officer (JAO) to the Faceless Assessing Officer (FAO), and later back to the JAO, the assessee lost valuable time to respond and submit necessary documents. Consequently, the assessment was Printed from counselvise.com 3 ITA 3684/Mum /2025 Essar Steel Metal Trading Limited completed in a hurried manner, and the assessee was not afforded adequate opportunity to furnish supporting evidence. In light of these circumstances, the Ld. AR prayed that the matter be remanded to the file of the Assessing Officer for reframing the assessment after granting sufficient opportunity to the assessee. 5. On the other hand, the Ld. DR opposed the prayer of the Ld. AR and contended that the matter may, at most, be restored to the file of the Ld. CIT(A), where the assessee may be permitted to adduce the relevant evidence. 6. Having considered the totality of facts and circumstances, we are of the view that the assessee has demonstrated reasonable cause for the non-submission of documents before the Ld. CIT(A). It is also evident that during the assessment proceedings, the assessee was not granted sufficient opportunity. However, we also note that the assessee did not raise any objection before the Ld. AO or any other authority with respect to the short time span in which the assessment was concluded. Nevertheless, the assessment was completed under section 143(3) of the Act. Accordingly, in the interest of justice, we deem it appropriate to restore the matter to the file of the Ld. CIT(A). The assessee is directed to furnish all relevant documents and additional evidence, if any, before the Ld. CIT(A). The Ld. CIT(A) shall consider all such documents and evidence in accordance with law and decide the matter afresh after granting a reasonable opportunity of being heard to the assessee. We make it clear that we have not expressed any opinion on the merits of the case, so as not to prejudice the proceedings before the appellate authority. Printed from counselvise.com 4 ITA 3684/Mum /2025 Essar Steel Metal Trading Limited It is further directed that the assessee shall be diligent and fully cooperative in the set-aside proceedings to ensure expeditious disposal of the appeal. Accordingly, the matter is restored to the file of the Ld. CIT(A) for fresh adjudication. 7. In the result, the appeal filed by the assessee bearing ITA 3684/Mum/2025 is allowed for statistical purpose. Order pronounced in the open court on 06th day of August, 2025. Sd/- sd/- (PRABHASH SHANKAR) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, िदनांक/Dated: 06/08/2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथ /The Appellant ,s 2. ितवादी/ The Respondent. 3. आयकर आयु\u0014 CIT 4. िवभागीय ितिनिध, आय.अपी.अिध., मुबंई/DR, ITAT, Mumbai 5. गाड फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Mumbai Printed from counselvise.com "