GANGARAM SUKHDEO CHAVAN,MUMBAI V. ASST. COMMISSIONER OF INCOME TAX CIRCLE 29(1), MUMBAI

ITA 5131/MUM/2025

AI Insights

The case involves Gangaram Sukhdeo Chavan, the appellant, who contested the assessment order for the Assessment Year 2013-14 under section 143(3) of the Income Tax Act, 1961. The Assessing Officer had made additions to the assessee's income, including a negative balance in the cash book and disallowances under section 40A(3). The CIT(A) initially dismissed the appeal ex parte due to non-submission from the assessee. The Tribunal, considering the circumstances, provided another opportunity for the assessee to present his case before the CIT(A).

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 832228 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: misc
• Appeal Filed On: 21-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SWAPNIL CHOUDHARY
• Assessee Lawyers: PARUL PANDYA; RITESH UPADHYAY
• Section: 143(3); 234B; 40A(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER I.T.A. No. 5131/Mum/2025 ASSESSMENT YEAR: 2013-14 (Physical Hearing) Gangaram Sukhdeo Chavan, Gala No.4, Pratap Singh, Industrial Estate No.2, LBS Road, Bhandup West, Mumbai-400078. PAN: [AAFPC6544C] Vs. Asst. Commissioner of Income Tax Circle-29(1) (Currently with Circle- 41(2)(1)), Kautilya Bhavan, Mumbai- 400051. (Appellant) (Respondent) Appellant by Ms. Parul Pandya & Shri Ritesh Upadhyay Respondent by Shri. Swapnil Choudhary- Sr. A.R. Date of Hearing 14.01.2026 Date of Pronouncement 21.01.2026 ORDER Per: SHRI JAGADISH, A.M.: 1. Aforesaid appeal filed by the assessee for Assessment Year (AY) 2013-14 arises out of the order of Ld.Commissioner of Income Tax (Appeals) [hereinafter CIT(A)], National Faceless Appeal Centre (NFAC), Delhi dated 25.06.2025 u/s 143(3) of Income Tax Act,1961. The assessee has filed this appeal with following grounds of appeal:- \"1) On the facts and circumstances of the Learned Assistant Commissioner has erred in determining the total Income of Rs11207560. The determination of the total income is not justified. 2) On the facts and circumstances of the case the Learned Assistant Commissioner has erred is disallowing Negative Cash Balance Rs 937206 and Printed from counselvise.com ITA No.5131/M/2025 Gangaram Sukhdeo Chavan, Mumbai 2 disallowance u/s 40A(3) Rs 2334911. The appellant submits that disallowance is not justified and against the facts and circumstances of the case. 3) The Learned Officer has erred in Levying interest U/s 234B at Rs 400896 and interest u/s 234C at Rs 20030. The appellant denies the liability of the payment of interest u/s 234 B and interest u/s 234C on the facts and circumstances of the case. The appellant submits that levy of interest and u/s 234B Rs 400896 and u/s 234C Rs 20030 is not justified and be deleted. 4) The order passed by the Assessing officer is bad in law and against the facts and circumstances of the case. 5) The appellant craves leave to add alter or amend the grounds of appeal which are without prejudice to one other.\" 2. The brief facts of the case are that the assessee is individual and filed his return of income for Assessment Year (AY) 2013-14 on 28.09.2013, declaring total income of Rs.79,35,440/-. 3. The Assessing Officer (AO) passed the assessment order u/s. 143(3) of the Act on 07.03.2016, making addition on account negative balance in Cash Book of Rs.9,37,206/- and disallowances of Rs.23,34,911/-. u/s 40A(3) of the Act . 4. On appeal the Ld. CIT (A) dismissed the appeal ex parte as assessee has not made any submission in response to notices issued. 5. The Ld. Authorised Representative (AR) at the outset has submitted that the Ld. CIT (A) has decided the appeal ex parte and therefore one more opportunity may be provided to substantiate his case before the Ld. CIT (A). 6. The Ld. Departmental Representative (DR) submitted that appeal may be dismissed as assessee has not been compliant. 7. We have considered the rival submissions and perused the material available on the record. The Assessing Officer (AO) has made the addition of Rs.9,37,206/-on account of negative balance in cash book and disallowance of Rs.23,34,911/-u/s Printed from counselvise.com ITA No.5131/M/2025 Gangaram Sukhdeo Chavan, Mumbai 3 40A(3) of the Income Tax Act, 1961. The Ld. CIT (A) has dismissed the appeal ex parte as assessee has not made any submission. We are of considered opinion that the assessee should be given one more opportunity before the Ld CIT(A) to substantiate his case. We, accordingly restore the matter back to the file of Ld. CIT (A) for fresh adjudication after considering the submission of the assessee. The assessee is directed to comply with the notices issued by the Ld. CIT (A) without fail. 8. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced on 21st day of January, 2026 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) VICE PRESIDENT (JAGADISH) ACCOUNTANT MEMBER Mumbai, Dated: 21 /01/2026. Ashwani Rao Sr. Private Secretary Copy of the order forwarded to: 1. Appellant 2. Respondent 3. The CIT 4. The CIT (Appeals) 5. The DR, I.T.A.T. By order (Assistant Registrar) ITAT, Mumbai Printed from counselvise.com "