M/S. FAIRMONT VENTURE P. LTD, MUMBAI V. ITO-9(3)(2), MUMBAI

ITA 1604/MUM/2023

AI Insights

The case involves M/s. Fairmont Venture Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)/ National Faceless Appeal Centre (NFAC) concerning an assessment year 2010-11. The primary issue was the addition of Rs.2,50,000 as estimated commission by the Assessing Officer (AO) under sections 143(3) read with section 147 of the Income Tax Act, 1961. The Commissioner dismissed the initial appeal due to non-prosecution as the assessee failed to respond to multiple notices. The Income Tax Appellate Tribunal (ITAT) decided to remand the case back to the Commissioner for a fresh decision on merits, emphasizing the need for a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302557 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-08-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 08-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC‘ BENCH MUMBAI BEFORE: SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA No.1604/Mum/2023 (Assessment Year :2010-11) M/s. Fairmont Venture Pvt. Ltd. Sagar Shopping Center Andheri West Mumbai – 400 058 Vs. National Faceless Appeal Centre Delhi PAN/GIR No.AABCF1538L (Appellant) .. (Respondent) Assessee by None Revenue by Shri Anurag Tripathi Date of Hearing 31/08/2023 Date of Pronouncement 31/08/2023 आदेश / O R D E R PER NARENDER KUMAR CHOUDHRY This appeal has been preferred by the assessee against the order dated 30/01/2023 impugned herein passed by the Ld. Commissioner of Income Tax (Appeals)/ National Faceless Appeal Centre (NFAC) (in short ‘Ld. Commissioner’) u/s.250 of the Income Tax Act, 1961 (in short ‘the Act’) for A.Y.2010-11. ITA No. 1604/Mum/2023 M/s. Fairmont Venture Pvt. Ltd. 2 2. At the outset, it is observed that notices sent to the assessee have been returned back by the Postal Authorities with the remarks ‘incomplete address/ not known, which goes to show that Assessee is not situated at the address mentioned in Form No.36 , hence I am constrained to decide this appeal ex-parte. 3. In this case, the AO vide Assessment Order dated 02/12/2017 u/s.143(3) r.w.s. 147 of the Act made the addition of Rs.2,50,000/- being 1% of Rs.2,50,00,000/- as commission estimated, against which the Assessee preferred first appeal before the ld. Commissioner who, though issued various notices for hearing on 26/12/2018, 21/05/2019, 10/08/2020, 04/01/2021 and 01/11/2022 for furnishing submissions and evidences in support of grounds of appeal filed before him. However, the assessee neither responded to the notices nor filed any submission and also made no request for adjournment, therefore, in the constrained circumstances, the ld. Commissioner dismissed the appeal of the assessee for non-prosecution. I observe that the ld. Commissioner has not decided the appeal on merits, hence, for just and proper decision of the case and for the ends of justice, it would be appropriate to remand the instance case to the file of the ld. Commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the Assessee, hence the case is remanded accordingly. ITA No. 1604/Mum/2023 M/s. Fairmont Venture Pvt. Ltd. 3 4. In the result, appeal filed by the assessee stands allowed for statistical purposes. Order pronounced on 31 August, 2023. Sd/- (N K Choudhry) JUDICIAL MEMBER Mumbai; KARUNA, sr.ps 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. //True Copy//