I.B.COMMERCIAL PRIVATE LIMITED, MUMBAI V. DCITA CENTRAL CIRCLE-3(3), MUMBAI

ITA 2029/MUM/2018

AI Insights

The Income Tax Appellate Tribunal in Mumbai dealt with multiple appeals involving M/s. I.B. Commercial Pvt. Ltd. and the DCIT, CC-3(3). The appeals for AY 2009-10 and AY 2014-15 filed by the assessee were primarily concerned with procedural issues regarding the issuance of notices under section 143(2) of the Income Tax Act and substantive issues related to unexplained expenditures and unaccounted receipts. The Tribunal noted the lack of cooperation from the assessee during the assessment proceedings and the initial hearings, leading to the decision to remand the cases back to the CIT(A) for a thorough re-examination. The revenue's appeal for AY 2014-15, which contested the relief granted by the CIT(A) regarding unaccounted receipts, was also remanded for a fresh decision.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 131953 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 03-10-2022
• Assessment Year: misc
• Appeal Filed On: 02-04-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained expenditure; Opportunity of being heard; Principle of natural justice; Set aside
• Section: 68; 143(2)

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL “C” Bench, Mumbai Shri B.R. Baskaran (AM) & Shri ABY T. Varkey (JM) I.T.A. No. 2029/Mum/2018 (A.Y. 2014-15) I.T.A. No. 2361/Mum/2019 (A.Y. 2009-10) M/s. I.B. Commercial Pvt. Ltd. Office No. 1, Malhotra House Opp. CGO, Fort Mumbai-400 001. Vs. DCIT, CC-3(3) Air India Building Nariman Point Mumbai-400 021. (Appellant) (Respondent) I.T.A. No. 2163/Mum/2018 (A.Y. 2014-15) DCIT, CC-3(3) Air India Building Nariman Point Mumbai-400 021. Vs. M/s. I.B. Commercial Pvt. Ltd. Office No. 1, Malhotra House Opp. CGO, Fort Mumbai-400 001. (Appellant) (Respondent) PAN : AABCI6616C Assessee by None Department by Shri Purshottam Tripuri Date of Hearing 04.10.2022 Date of Pronouncement 16.12.2022 O R D E R PER BENCH:- The assessee has filed appeals for AY 2009-10 and 2014-15. The revenue has filed appeal for AY 2014-15. 2. None appeared on behalf of the assessee. We notice that the notices were issued to the assessee several times on earlier occasions, but there was no response from the assessee. Hence we proceed to dispose of the appeals ex-parte, without presence of the assessee. 3. We shall first take up the appeal filed by the assessee for AY 2009-10. The assessee has contended that the AO has not issued notice u/s 143(2) of M/s. I.B. Commercial Pvt. Ltd. 2 the Act. However, the AO has reported that the notice u/s 143(2) of the Act has been issued after filing of return of income by the assessee. Hence we do not find any merit in this ground of the assessee. 4. The next issue contested by the assessee relates to the addition of Rs.29.34 lakhs on account of alleged unexplained expenditure on the basis of seized material. We notice that the assessee did not properly co-operate before the AO during the course of assessment proceedings. Further, the assessee has stated before Ld CIT(A) that the show cause issued by the AO was unclear. However, the Ld CIT(A) proceeded to confirm the addition made by the AO. Thus, we notice that the assessee did not get enough opportunity to present its case properly before Ld CIT(A). Accordingly, in the interest of natural justice, we are of the view that the assessee should be provided with one more opportunity. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to his file for examining it afresh. After affording adequate opportunity of being heard, the Ld CIT(A) may take appropriate decision in accordance with law. 5. We shall now take up the appeal filed by the assessee for AY 2014-15. In this year also, the assessee is contending that notice u/s 143(2) has been issued before filing return of income. However, the AO has reported that the notice u/s 143(2) of the Act has been issued after filing of return of income by the assessee. Hence we do not find any merit in this ground of the assessee. 6. The assessee has raised following grounds on merits:- (a) Additions on account of unaccounted cash receipts partially sustained by Ld CIT(A) in respect of Khumbarwada project. (b) Addition of Rs.17.16 crores u/s 68 of the Act. (c) Addition of unrecorded expenses of Rs.5.42 crores (d) Addition of unrecorded cash receipts of Rs.4.35 crores M/s. I.B. Commercial Pvt. Ltd. 3 7. We notice that the assessee has not fully co-operated with the AO during the course of assessment proceedings, which has led to making above said additions. Before Ld CIT(A), the assessee has made certain submissions and we notice that the Ld CIT(A) has confirmed the additions. It is the case of the assessee that it did not get proper opportunity to explain its case in respect of above said issues. Accordingly, in the interest of natural justice, we are of the view that the assessee should be provided with one more opportunity. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to his file for examining it afresh. After affording adequate opportunity of being heard, the Ld CIT(A) may take appropriate decision in accordance with law. 8. We shall now take up the appeal filed by the revenue for AY 2014-15. The revenue is contesting the relief granted by Ld CIT(A) in respect of unaccounted receipts on Kumbharwada project. In the preceding paragraphs, we have already restored this issue to the file of Ld CIT(A). Accordingly, the first appellate authority may take fresh decision after affording adequate opportunity of being heard to the assessee. 9. In the result, both the appeals of the assessee are treated as partly allowed for statistical purposes. The appeal of the revenue is treated as allowed for statistical purposes. Order pronounced in the open court on 16.12.2022. Sd/- Sd/- (ABY T. VARKEY) (B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated : 16/12/2022 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(A) 4. CIT M/s. I.B. Commercial Pvt. Ltd. 4 5. DR, ITAT, Mumbai 6. Guard File. BY ORDER, //True Copy// (Assistant Registrar) PS ITAT, Mumbai