INTELLIGENT HOUSING REDEVELOPMENT PRIVATE LTD,MUMBAI V. INCOME TAX OFFICER -14(2)(1), MUMBAI

ITA 3302/MUM/2025

AI Insights

The case involves Intelligent Housing Redevelopment Private Ltd., which appealed against the order of the Commissioner of Income Tax Appeals, NFAC, Delhi, confirming the addition of Rs. 4,47,97,501 under section 68 of the Income Tax Act, 1961, treating it as unexplained cash credit. The appeal also contested the treatment of Rs. 6,95,117 as income from other sources instead of business income. The initial appeal was dismissed due to non-compliance with procedural requirements under the faceless appeal scheme. The tribunal found that the assessee's earlier submissions were not acknowledged properly and thus restored the matter for fresh adjudication on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777215 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2025
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 09-05-2025
• Laws Referred To: Income Tax Act, 1961
• Court: TRIBUNAL
• Department Lawyers: VIRABHADRA MAHAJAN
• Assessee Lawyers: DHARAN GANDHI
• Keywords: Set aside; Corroborative evidences; Unexplained cash credit; Bogus Share capital; Opportunity of cross examination; Bogus
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH MUMBAI BEFORE: SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI ARUN KHODPIA, ACCOUNTANT MEMBER ITA No. 3302/MUM/2025 (AY:2012–13) Intelligent Housing Redevelopment Private Ltd. Flat No. 604/605 Sai Elegance, Mahakali Caves Road, Andheri (East), Mumbai – 400093 [e-mail] Mobile No. 9920858889 Vs. Income Tax Officer-14(2) (1) Room No. 457, Aayakar Bhavan, M.K. Road, Mumbai- 400020 PAN: AACCI3331H (Appellant) .. (Respondent) Assessee by Shri. Dharan Gandhi, Advocate Revenue by Shri. Virabhadra Mahajan, Sr. DR Date of Hearing 16/09/2025 Date of Pronouncement 17/09/2025 Order under section 254(1) of Income Tax Act PER ARUN KHODPIA, ACCOUNTANT MEMBER: This appeal is filed by the assessee against the order of Commissioner of Income Tax Appeals, NFAC, Delhi (in short ‘Ld. CIT(A)’) dated 13.03.2025, for the Assessment Year 2012-13, which in turn arises from the assessment order u/s 143(3) of the Income Tax Act, 1961 (in short ‘the Act’) passed by Income Tax Officer, W-14(2)(1), Mumbai dated 30.03.2015. Printed from counselvise.com ITA no. 3302/MUM/2025 Intelligent Housing Redevelopment Private Ltd. 2 2. The appeal is filed to raise the contentions as per ground of appeal, extracted as under: 1. The National Faceless Appeal Centre has erred in law, facts and circumstances of the case by confirming the addition of Rs. 4,47,97,501/- u/s 68 of the Income Tax Act, 1961. 2. The National Faceless Appeal Centre has erred in law, facts and circumstances of the case by confirming the addition of Rs. 4,47,97,501/- u/s 68 of the Act, 1961 by treating the amount received on subscription of shares as unexplained cash credit without appreciating the explanations provided and the evidences place on record. 3. The National Faceless Appeal Centre has erred in law, facts and circumstances of the case by confirming the addition of Rs. 4,47,97,501/- u/s 68 of the Act, 1961 and ignoring the fact that the identity of investors, genuineness of transactions and capacity of the investors were duly established and also erred in law not granting the opportunity of cross examination of third parties on whose statement reliance is placed. 4. The National Faceless Appeal Centre has erred in law, facts and circumstances of the case by confirming the addition of Rs. 6,95,117/- by treating consulting income as interest income under the head \"Income from Other sources\" against the Appellant's claim in the Income Tax Return under the head \"Income from Business and Profession.\" Printed from counselvise.com ITA no. 3302/MUM/2025 Intelligent Housing Redevelopment Private Ltd. 3 6. Your Appellant craves leave to add to, alter, amend, delete and/or modify the above grounds of appeal on or before the final date of hearing. 7.Prayer: The Appellant prays your honor for allowing the appeal.” 3. Briefly stated, the assessment u/s 143(3) in the present case was completed with the addition of Rs. 4,47,97,501/- u/s 68 of the Act on account of unexplained cash credit in the garb of bogus Share capital and premium received during the relevant assessment year and interest received for Rs. 6,95,117/- being treated as income from other sources. Aggrieved, the assessee preferred an appeal before the First Appellate Authority, but the appeal has been dismissed on the count of no response by the assessee and non-availability of form 35 along with necessary documents on the ITBA portal. 4. Before us Ld. Authorized Representative (in short ‘Ld. AR’) on behalf of assessee submitted that appeal by the assessee before the first appellate authority was filed on 06.05.2015 in physical mode, later the case is transferred to Faceless Appeal Scheme. The assessee had not received any notice issued under section 250 of the Act by Ld/ CIT(A). Printed from counselvise.com ITA no. 3302/MUM/2025 Intelligent Housing Redevelopment Private Ltd. 4 It is further clarified by the Ld. AR that the assessee had furnished requisite submissions and supporting documents before the erstwhile Ld. CIT(A) on 21.09.2017 signed by counsel of the assessee (copy furnished before us), however it is noted that the same has not been acknowledged by the office of CIT(A) as per usual practice under old regime. Ld. AR further submitted a copy of letter dated 29.01.2020 submitted in the office of CIT(A)-22, Mumbai on 31.01.2020 signed by the counsel of the assessee, requesting for copy of documents furnished earlier as the office file of the assessee’s case could not be traced. Based on such submissions and it is the prayer by the counsel that the matter, since was not decided on merits by the Ld CIT(A), deserves to be restored back for afresh adjudication. It is further requested to direct the authorities below, may be Ld CIT(A), Nodal Officer or Ld. AO to provide copies of documents furnished by the assessee before the Ld CIT(A) in physical mode, while filing the appeal before faceless regime. 5. Per contra Ld. Sr. Dr representing the revenue supported the order of Ld. CIT(A), but have conceded if the matter is restored back for fresh adjudication to the file of Ld. CIT(A). Printed from counselvise.com ITA no. 3302/MUM/2025 Intelligent Housing Redevelopment Private Ltd. 5 6. Having heard the rival parties, perused the material on record and the request of the parties. In present matter undoubtedly the appeal was filed by the assessee before Ld. CIT(A), Mumbai under physical regime on 06.05.2015, which thereafter as per direction of CBDT under notification 139/2021 dated 28.12.2021, the appeal was transferred to Faceless Appeal Scheme, 2021 for adjudication to Ld. CIT(A), NFAC. As per new scheme the appeal folder/documents of the assessee were supposed to be uploaded on ITBA portal by the concerned authority /Nodal Officer of Income Tax Department for perusal of the Ld. CIT(A)/NFAC, however such details were not uploaded as observed by the Ld. CIT(A)/NFAC. Ld. CIT(A)/NFAC, thereafter, requested for such documents from the assessee but it also remain non-compliant. Be that as it may; to meet the interest of substantial justice, we find it appropriate to restore the matter back to the file of Ld. CIT(A)/NFAC for fresh adjudication on merits. The request of Ld. AR to provide the copies of documents furnished before Ld. CIT(A) in old regime may be considered by the authorities below in justified manner, and provide the copies of documents, if the same are available with them, however, the onus would remain to be on the assessee to prove its contentions with Printed from counselvise.com ITA no. 3302/MUM/2025 Intelligent Housing Redevelopment Private Ltd. 6 corroborative evidences and explanations to the satisfaction of the revenue authorities. The matter accordingly is directed to be remitted back to the file of Ld. CIT(A) for denovo adjudication with reasonable opportunities to be heard to the assessee. As requested by ld. AR, the communication to assessee shall be made on email ID [e-mail] and Mobile No. 9920858889. 7. The assessee is directed to assist proactively in the set aside appellate proceedings, failing which the Ld. CIT(A)/NFAC would be at liberty to decide the matter in accordance with the law. 8. Resultantly the appeal of assessee is allowed for statistical purposes, in terms of our aforesaid observations. Order pronounced in open court on 17.09.2025. Sd/- (PAWAN SINGH) Sd/- (ARUN KHODPIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated 17/09/2025 Disha Raut, Steno 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. Printed from counselvise.com "