AMAR DEVELOPERS , MUMBAI V. INCOME TAX OFFICER, WARD 30(1)(1), MUMBAI

ITA 1330/MUM/2023

AI Insights

The case involves Amar Developers, a partnership firm engaged in construction, which appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2017-18. The primary issues in the appeal included the validity of an ex-parte order by the CIT(A), and various additions made by the Assessing Officer to the assessee's declared income, including business income and unexplained cash credits. The Tribunal found that the assessee was not given a fair opportunity to present its case at the CIT(A) level due to procedural oversights, leading to the decision to remand the matter back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136486 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 05-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 19-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Business income
• Section: 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “A” Bench, Mumbai. Before Shri B.R. Baskaran (AM) & Shri Pavan Kumar Gadale (JM) I.T.A. No. 1330/Mum/2023 (A.Y. 2017-18) Amar Developers Amar Residency Cross Road No. 3, Liberty Garden, Malad West Mumbai-400 064. PAN : AAPFA9607E Vs. ITO, Ward- 30(1)(1) 4 th Floor Kautilya Bhavan C-41 to 43 BKC, Bandra East Mumbai-400 051. (Appellant) (Respondent) Assessee by Dr. K. Shivaram & Ms. Neelam Jadhav Department by Shri Manoj Kumar Sinha Date of Hearing 06.07.2023 Date of Pronouncement 06.07.2023 O R D E R Per B.R.Baskaran (AM) :- The assessee has filed this appeal challenging the order dated 23.2.2023 passed by the learned CIT(A), National Faceless Appeal Centre, Delhi and it relates to A.Y. 2017-18. The main grounds and additional ground urged by the assessee give rise to the following issues :- a) Validity of ex-parte order passed by the learned CIT(A). b) Addition of Rs. 1.43 crores as business income. c) Addition of Rs. 1.48 crores as unexplained cash credit. d) Addition of Rs. 25.09 lakhs towards cash deposited into the bank account. 2. The assessee is a partnership firm engaged in the business of construction. The assessee has followed project completion method for determining the total income. Accordingly, it filed its return of income for the year under consideration declaring NIL income. The Assessing Officer, however, completed the assessment by determining the total income at Amar Developers 2 Rs.3.28 crores by making above said three types of additions. The assessee challenged them by filing the appeal before the learned CIT(A). However, the learned CIT(A) dismissed the appeal of the assessee, since the assessee did not furnish any submission before him. Aggrieved, the assessee has filed this appeal before the Tribunal. 3. The Learned AR submitted that the assessee could not furnish necessary details before the Assessing Officer during the course of assessment proceedings, even though the assessee has furnished the detailed explanations in the form of written submission. However, the Assessing Officer has passed the order without considering the written submission. He submitted that the assessee could not appear before the learned CIT(A), since the notices were issued to the e-mail of the earlier consultant and the said earlier consultant did not inform the assessee about the notices of hearing. Accordingly learned AR submitted that the learned CIT(A) was not justified in dismissing the appeal of the assessee ex-parte. 4. The Learned AR submitted that the necessary details have been filed before the Tribunal now and accordingly prayed that these additional evidences may be admitted. He further submitted that these details require examination at the end of the Assessing Officer and accordingly prayed that all the three issues may be restored to the file of AO for examining these issues afresh. 5. The Learned DR, on the contrary, submitted that the assessee did not cooperate with the learned CIT(A) and hence the learned CIT(A) was constrained to pass the order ex-parte. 6. We heard the rival contention and perused the record. Having regard to the submissions made by learned AR, we admit the additional evidences furnished by the assessee. Since these additional evidences require Amar Developers 3 examination at the end of the Assessing Officer, we set aside the order passed by the learned CIT(A) and restore all the three issues to the file of the Assessing Officer for examining them afresh, after affording adequate opportunity of being heard. We also direct the assessee to fully cooperate with the Assessing Officer for expeditious completion of the assessment. 7. In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Pronounced in the open court on 6.7.2023. Sd/- Sd/- (PAVAN KUMAR GADALE) (B.R. BASKARAN) Judicial Member Accountant Member Mumbai.; Dated : 06/07/2023 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(A) 4. CIT 5. DR, ITAT, Mumbai. 6. Guard File. BY ORDER, //True Copy// (Assistant Registrar) PS ITAT, Mumbai