RTG EXCHANGE LTD, MUMBAI V. GOVT OF INDIA, MINISTRY OF FINANCE INCOME TAX DEPT, NFAC , NEW DELHI

ITA 1048/MUM/2023

AI Insights

RTG Exchange Limited filed an appeal against the order of the Learned Commissioner of Income Tax (Appeals), which had dismissed their earlier appeal due to non-grant of an adjournment. The assessee argued that they were unable to attend the earlier proceedings and did not receive notices due to the closure of their office and cessation of Forex business activities. The Assessing Officer had made additions to the assessee's income, treating unsecured loans as unexplained cash credits under section 68 of the Income Tax Act, 1961. The tribunal found that the assessee was not given adequate opportunity to present their case and thus restored the matter to the CIT(A) for a fresh examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123829 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 14-06-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 30-03-2023
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI PAVAN KUMAR GADALE, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER ITA NO. 1048/MUM/2023 (A.Y. 2015-16) RTG Exchange Limited 3, Chapel Road Near Jeff Caterers Off. Hill Road, Bandra (W) Mumbai - 400050 PAN: AABCG0985A v. The Add/Joint/Deputy/Asst. Commissioner of Income Tax/Income Tax Officer National Faceless Appeal Centre Through the Principal Chief Commissioner of Income-tax Room No. 401, 2 nd Floor Eramp, Jawaharlal Nehru Stadium New Delhi – 110003. (Appellant) (Respondent) Assessee Represented by : Shri Dhaval Shah Department Represented by : Ms. Kavita Kaushik Date of Conclusion of Hearing : 15.06.2023 Date of Pronouncement : 21.06.2023 O R D E R PER S. RIFAUR RAHMAN (AM) 1. This appeal is filed by the assessee against order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, 2 ITA NO. 1048/MUM/2023 (A.Y. 2015-16) RTG Exchange Limited Page No. 2 Delhi [hereinafter in short “Ld.CIT(A)”] dated 15.02.2023 for the A.Y.2015-16. 2. Assessee has raised following grounds in its appeal: - “The Appellant has taken following grounds of appeal:- 1) The appellant had filed an appeal before the Ld CIT (A) vide appeal no CIT (A) 21, Mumbai/10839/2017-18, but the same was dismissed by the Ld. CIT (A), as the Appellant had filed for an adjournment online on 09.02.2023 which was not granted by the Ld. CIT (A). (Copy of mail received from the Department that the request for adjournment has been submitted successfully is attached herewith) 2) The appellant further states that they were unable to view the earlier notices sent on the mail id on 29.01.2021 & 20.01.2023, as the client was not operating Forex business from Dec 20 th 2018, and there were no staff from Jan 2019, as the FFMC Licence was not renewed by RBI, and since the office of Appellant was mostly closed as there was no Forex business, the mails of the company were not checked often and possibility that the notices dated 29.01.2021 & 05.01.2023 were not seen by the appellant due to oversight. 3) The appellant further states that on the basis of the facts and circumstances of the cases in the law, the Ld.AO erred in making addition of Rs 27,65,820/- by treating the unsecured Loans obtained by the Appellant as unexplained cash credit u/s 68 of the Income Tax Act 1961. It is submitted that the Ld. AO has made such arbitrary addition without considering the documents & explanations given by Appellant during the course of assessment proceedings. It is therefore prayed to Your Honour that the additions of Rs 27,65,820/- made by the Ld. AO shall be deleted since the same is unjustified, unwarranted & unnecessary, and necessary direction be given in this regard. 4) The appellant further states that on the basis of facts & circumstances of the cases in law, the Ld. AO erred in making addition of ₹.6,07,876/- considering repayment of loan made out of undisclosed” 3 ITA NO. 1048/MUM/2023 (A.Y. 2015-16) RTG Exchange Limited Page No. 3 3. At the outset, Ld. AR of submitted that the most of the relevant documents i.e, Purchased Bills, Sales Bills, and other documents were destroyed as the office was completely closed during the Covid-19 Pandemic and assessee has lodged a Complaint with the Bandra Police. Ld. AR of the assessee submitted that assessee has sought for adjournment through online on 09.02.2023 and the same was not granted by the Ld.CIT (A). Ld. Counsel for the assessee submits that Ld.CIT(A) passed exparte order without providing adequate opportunity of being heard to the assessee, therefore, considering additions/disallowance made by the Assessing Officer, Ld. Counsel for the assessee requested that the matter may be restored to the file of the Ld.CIT(A). 4. Ld. DR has no serious objection in remitting the matter back to the file of the Ld.CIT(A). 5. Considered the rival submissions and material placed on record, on a perusal of the Ld.CIT(A) order, we find that even though the Ld.CIT(A) provided opportunity on several occasions assessee could not appear. Considering the totality of facts and submissions of the Ld. AR and keeping in view the additions/disallowance made by the Assessing Officer, we are of the opinion that assessee should be given one more opportunity of 4 ITA NO. 1048/MUM/2023 (A.Y. 2015-16) RTG Exchange Limited Page No. 4 being heard. Thus, this appeal is restored to the file of the Ld.CIT(A) for denovo adjudication in accordance with law. Assessee shall cooperate with the proceedings before the Ld.CIT(A) without taking unnecessary adjournments. Needless to say that the Ld.CIT(A) shall give adequate opportunity of being heard to the assessee. Thus, this appeal is restored to the file of the Ld.CIT(A) accordingly. 6. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 21 st June, 2023. Sd/- Sd/- (PAVAN KUMAR GADALE) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai / Dated 21.06.2023 Giridhar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// BY ORDER (Asstt. Registrar) ITAT, Mum