HIND OFFSHORE PVT LTD,MUMBAI V. CIRCLE 5(1)(1), MUMBAI

ITA 820/MUM/2025

AI Insights

Hind Offshore Pvt Ltd filed an appeal against the order of the National Faceless Appeal Centre, Delhi, which had dismissed their earlier appeal ex parte due to non-compliance with notices. The original dispute involved disallowances under section 14A and treatment of interest income under non-tonnage business for the Assessment Year 2018-19. The Income Tax Officer had made additions to the income declared by Hind Offshore Pvt Ltd, which were contested. The CIT(A) dismissed the appeal due to non-compliance, which the assessee attributed to not receiving the notices. The tribunal decided to remand the case back to the CIT(A) for a fresh examination on merits, acknowledging the assessee's claim of not receiving the notices.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 112276 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: AJIT PAL SINGH
• Assessee Lawyers: DEVENDRA JAIN
• Section: 143(3); 250; 14A

Judgement Text

"IN THE INCOME-TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE MS. KAVITHA RAJAGOPAL, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.820/MUM/2025 (निर्धारण वर्ा / Assessment Year :2018-19) Hind Offshore Pvt Ltd. 1 C Wakefield House, N.M. Road, Ballard Estate, Mumbai 400001 v/s. बिधम DCIT Circle -5(1)(1), Mumbai Ayakar Bhavan Churchgate, Mumbai 400001 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAACK0362N Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee by: Shri. Devendra Jain रधजस्व की ओर से /Revenue by: Shri Ajit Pal Singh, SR DR सुिवधई की िधरीख / Date of Hearing 16.04.2025 घोर्णध की िधरीख/Date of Pronouncement 17.04.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 06/11/2024 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2018-19. 2. The assessee has raised the following grounds of appeal: “Ground No. 1. Disallowance u/s 14A (Rs. 515533/-.) Ground No. 2. Treatment of interest income under Non tonnage (Rs. 3531435/-)” 2 | P a g e ITA No. 820/MUM/2025 A.Y. 2018-19. Hind Offshore Pvt Ltd 3. Brief facts of the case are that the assessee company filed original return declaring total income of Rs. 7,63,19,564/- on 30/11/2018. Subsequently, the return was revised on 11/12/2018, declaring income of Rs. 7,63,19,564/-. The case was selected for scrutiny, and assessment was completed at an income of Rs. 8,75,16,024/- vide order u/s. 143(3) r.w.s 144B of the Act dated 28/04/2021, after making the following additions: “i. Disallowance u/s 14A - Rs. 515533/-. ii. Addition on a/c. of interest under Non Tonnage business - Rs. 10680927/-” 4. Aggrieved with the order of the Ld. AO, the assessee preferred an appeal before the Ld. CIT(A) on 26/05/2021. As there was no compliance by the assessee to various notices issued during the appellant proceedings, Ld. CIT(A) vide order dated 06/11/2024 dismissed the appeal ex parte. Aggrieved with the order of Ld. CIT(A), the assessee has filed an appeal before the Tribunal. 5. Vide written submissions, the assessee has claimed that the notices issued by the Ld. CIT(A) on 25/09/2024, 04/10/2024, 11/10/2024 and 18/10/2024 were not received by the assessee. It was only on 15/01/2025 that the assessee company came to know about the dismissal of its appeal. Accordingly, an appeal before ITAT was filed on 05/02/2025. Since the assessee came to know about the order u/s. 250 only on 15/11/2025, Ld. AR has requested that the present appeal should be treated as within time and delay, if any, may be condoned. It has further been submitted by the Ld. AR that due to non-receipt of notices issued by the Ld. CIT(A), the assessee could not make requisite submissions, 3 | P a g e ITA No. 820/MUM/2025 A.Y. 2018-19. Hind Offshore Pvt Ltd and therefore, the appeal has been dismissed without considering the merits of the issues. He has, accordingly, requested for remanding back the case to Ld. CIT(A) for fresh decision of merits. Ld. DR has not objected to the above said proposition of Ld. AR. 6. We have heard the rival submissions and perused the material available on record. Admittedly, the appeal has been decided ex parte in the absence of any compliance by the assessee before Ld. CIT(A). In the interest of justice, we deem it appropriate to restore the matter to Ld. CIT(A) for deciding it a fresh on merits after giving due opportunity to the assessee. The assessee is also directed to make requisite compliance before Ld. CIT(A). 7. In the result, appeal is allowed for statistical purposes. Order pronounced in the open court on 17.04.2025. Sd/- Sd/- KAVITHA RAJAGOPAL RENU JAUHRI (न्यधनयक सदस्य/JUDICIAL MEMBER) (लेखधकधर सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai दिन ुंक /Date 17.04.2025 दिव्य रमेश न ुंिग वकर/ स्टेनो आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. 4 | P a g e ITA No. 820/MUM/2025 A.Y. 2018-19. Hind Offshore Pvt Ltd सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "