NOVA FINANCIAL SERVICES PVT. LTD., MUMBAI V. ITO 15 (2)(2), MUMBAI

ITA 177/MUM/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9718 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 14-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA VIJAY
• Keywords: Unexplained cash credit; Principle of natural justice; Set aside
• Section: 143(3); 234B; 250; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 177/MUM/2019 (A.Y: 2010-11) NOVA FINANCIAL SERVICES PVT LTD., GROUND FLOOR, SEETA NIWAS, PRATAP NAGAR MARG, FARID NAGAR, BHANDUP (W), MUMBAI 700078. VS. ITO 15(2)(2) MUMBAI. PAN/GIR NO. : AABCN8606M APPELLANT .. RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SHRI CHANDRA VIJAY , DR DATE OF HEARING 17 .0 6 .2021 DATE OF PRONOUNCEMENT 21 .0 6 .2021 / O R D E R PER PAVAN KUMAR GADALE, JM: THE APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -24 MUM BAI, PASSED U/S. 143(3) R.W.S 147 AND 250 OF THE INCOME TAX ACT, 1961. THE ASSESSEE HAS RAISED THE FOLLOWING G ROUNDS OF APPEAL: 1. THE LD. CIT (A) ERRED IN CONFIRMING THE REOPENI NG OF THE CASE U/S 147 OF THE ACT. ITA NO. 177/MUM/2019 NOVA FINANCIAL SERVICES, MUMBAI - 2 - 2. THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 3,50,70,000/- AS UNEXPLAINED CASH CREDIT U/S 68 OF THE ACT. 3. THE LD. CIT(A) ERRED IN CONFIRMING THE CHARGING OF INTEREST TO RS. 1,10,58,879/- U/S 234B OF THE ACT. 4. THE ORDER PASSED BY THE LD. CIT(A) IS ILLEGAL, BAD IN LAW, ULTRA VIRUS AND CONTRARY TO THE PROVISIONS OF LAW A ND FACTS AND IS PASSED WITHOUT APPLICATION OF MIND AN IN VIOLATI ON OF THE PRINCIPLES OF NATURAL JUSTICE. AT THE TIME OF HEARING, IT WAS BROUGHT TO THE KNOW LEDGE OF THE BENCH THAT THE LD.CIT(A) HAS PASSED AN EX PARTE FOR NON PROSECUTION OF APPEAL BY THE ASSESSEE. WE F IND NONE APPEARED ON BEHALF OF THE ASSESSEE AND THE LD. DR SUPPORTED THE ORDER OF THE CIT(A). 2. WE HEARD THE LD. DR SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA-FACIE THE CIT(A) HAS PAS SED THE EX-PARTE ORDER CONSIDERING THE FACT THAT THERE IS N O APPEARANCE IN SPITE OF PROVIDING ADEQUATE OPPORTUNI TY OF HEARING AND NOTICES WERE ALSO ISSUED. THEREFORE, TH E CIT(A) WAS OF THE OPINION THAT THE ASSESSEE IS NOT INTERESTED IN PROSECUTING THE APPEAL AND DISMISSED THE APPEAL EX-PARTE WITHOUT GOING INTO THE MERITS OF TH E CASE. WE ON PERUSAL OF THE CIT(A) FOUND THAT THE LD.CIT(A ) HAS ISSUED THE NOTICE OF HEARING, BUT THERE WAS NO RESP ONSE AND THUS THE LD.CIT(A) CAME TO A CONCLUSION THAT TH E ASSESSEE IS NOT INCLINED TO PROSECUTE THE APPEAL. W E FIND THAT THE ASSESSEE COMPANY HAS RAISED GROUNDS OF APP EAL ITA NO. 177/MUM/2019 NOVA FINANCIAL SERVICES, MUMBAI - 3 - CHALLENGING ADDITIONS OF THE A.O. AND THERE COULD B E VARIOUS REASONS FOR NON APPEARANCE WHICH CANNOT BE OVERRULED. WE CONSIDERING THE PRINCIPLES OF NATURAL JUSTICE SHALL PROVIDE ONE MORE OPPORTUNITY OF HEARING TO TH E ASSESSEE TO SUBSTANTIATE ITS CASE BEFORE THE CIT(A) ALONG WITH EVIDENCES AND INFORMATION. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE CIT(A) AND REMIT THE ENTIRE DISPUT ED ISSUES TO THE FILE OF THE CIT(A) TO ADJUDICATE AFRE SH ON MERITS AND THE ASSESSEE SHOULD COOPERATE IN SUBMIT TING THE INFORMATION FOR EARLY DISPOSAL OF THE APPEAL A ND ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE STATISTICAL PURPOSES. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21.06.2021 SD/- SD/- ( SHAMIM YAHYAS ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED 21.06.2021 KRK, PS ITA NO. 177/MUM/2019 NOVA FINANCIAL SERVICES, MUMBAI - 4 - / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) 4. ( ) / CONCERNED CIT 5. !!' , $ % , / DR, ITAT, MUMBAI 6. () * + / GUARD FILE. / BY ORDER, ! //TRUE COPY// 1. ( ASST. REGISTRAR) ITAT, MUMBA I