PYXIS EXIM PRIVATE LIMITTED , MUMBAI V. ITO 15(2)(1), MUMBAI

ITA 2020/MUM/2023

AI Insights

M/s. Pyxis Exim Private Limited appealed against the order of the Learned Commissioner of Income Tax (Appeals), which sustained an addition of Rs 41,23,203 to the assessee's income, estimated at 0.5% of alleged accommodation entries amounting to Rs 82,46,40,707. The assessee contended that the CIT(A) erred in framing an ex parte order and not appreciating the facts fully, particularly that they did not receive any income from the alleged accommodation entries managed by Mr. Nikunj Kanakia. The tribunal found that the assessee was not given an adequate opportunity to present their case and thus restored the appeal to the CIT(A) for a fresh examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123860 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-09-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 29-05-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Accommodation entries

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “SMC”, MUMBAI BEFORE SHRI VIKAS AWASTHY, HON'BLE JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, HON'BLE ACCOUNTANT MEMBER ITA NO. 2020/MUM/2023 (A.Y. 2008-09) M/s. Pyxis Exim Private Limited D-502, Xanadu Building Prathamesh Complex Veera Desai Road, Andheri (W) Mumbai - 400058 PAN: AADCP2761P v. Income Tax Officer – 15(2)(1) Aaykar Bhavan, M.K. Road Mumbai - 400020 (Appellant) (Respondent) Assessee Represented by : Shri Poojan Mehta Department Represented by : Shri Suhas Dabade Date of Conclusion of Hearing : 18.09.2023 Date of Pronouncement : 18.09.2023 O R D E R PER S. RIFAUR RAHMAN (AM) 1. This appeal is filed by the assessee against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter in short “Ld.CIT(A)”] dated 30.03.2023 for the A.Y.2008-09. ITA NO. 2020/MUM/2023 (A.Y. 2008-09) M/s. Pyxis Exim Private Limited Page No. 2 2. Assessee has raised following grounds in its appeal: - “1. The Officer at National Faceless Appeal Centre (hereinafter referred to as the CIT(A)) erred in framing an ex parte order. 2. The CIT(A) erred in sustain the addition made by the Income- tax Officer - 15(2)(4), Mumbai (hereinafter referred to as the Assessing Officer) of Rs 41,23,203, being income estimated at the rate of 0.5 per cent of the alleged aggregate accommodation entries of Rs 82,46,40,707. The appellants contend that on the facts and in the circumstances of the case and in law, the CIT(A) ought not have sustained the impugned addition inasmuch as the CIT(A) has not appreciated the facts of the case in its entirety. The appellants further, contend that the CIT(A) ought not have sustained the impugned addition inasmuch as the alleged accommodation entries were carried out, and managed by Mr Nikunj Kanakia, through the appellants; however, the appellants have not received any income for facilitating the alleged accommodation entries.” 3. At the outset, Ld. Counsel for the assessee submitted 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) ITA NO. 2020/MUM/2023 (A.Y. 2008-09) M/s. Pyxis Exim Private Limited Page No. 3 provided opportunity on several occasions, assessee could not appear nor complied to the notices. 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 being heard in the interest of principles of natural justice. 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 filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 18 th September, 2023. Sd/- Sd/- (VIKAS AWASTHY) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai / Dated 18.09.2023 Giridhar, Sr.PS ITA NO. 2020/MUM/2023 (A.Y. 2008-09) M/s. Pyxis Exim Private Limited Page No. 4 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