AMRISH T JAIN, THANE V. PCIT, MUMBAI-41, MUMBAI

ITA 2189/MUM/2023

AI Insights

The case involves an appeal by Amrish Jain against the order of the Ld. Pr. Commissioner of Income Tax-41, Mumbai, which was passed under section 263 of the Income Tax Act, 1961. The original assessment was completed under section 143(3) by the AO, but the Ld. PCIT set aside this order, directing a re-examination of the interest expenditure claimed by the Assessee. The Assessee did not appear at the hearings, leading to an ex-parte decision by the Ld. PCIT. The Income Tax Appellate Tribunal (ITAT) found that the case was not decided properly due to the absence of the Assessee's submissions and remanded the case back to the Ld. PCIT for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124810 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 20-09-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 13-06-2023
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY CHANDRAN
• Keywords: Opportunity of being heard
• Section: 263; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN, AM & SHRI N. K. CHOUDHRY, JM I.T.A. No. 2189/Mum/2023 Assessment Year: 2018-19) Amrish Jain, 605, Corporate Center, Nirmal Lifestyles, LBS Marg, Mulund (W), Mumbai-400080. PAN No. AACPJ2673G Vs. PCIT, Mumbai-41, Room No. 541, Kautilya Bhawan, C-41 to C-43, G Block, BKC (E), Mumbai-400051. Appellant) : Respondent) Appellant/Assessee by : None Respondent/Department by : Shri Ajay Chandran, CIT-DR Date of Hearing : 21.09.2023 Date of Pronouncement : 22.09.2023 O R D E R Per N. K. Choudhry, JM: The Assessee/Appellant herein has preferred this appeal against the order dated 28.03.2023 impugned herein passed by Ld. Pr. Commissioner of Income Tax-41, Mumbai {in short ‘Ld. PCIT’} under section 263 of the Income Tax Act 1961 (in short ‘the Act’). 2. Inspite of sending notices for the date of hearing, the Assessee neither appeared nor filed any adjournment petition, hence, in the constrained circumstances, are we inclined to decide this appeal as ex- parte. 2 ITA No. 2189/Mum/2023 Amrish Jain 3. At the outset, we observe that there is a delay of 60 days in filing the instant appeal, on which the Assessee has claimed that due to major health issues, the Assessee was unable to file the appeal before the Hon’ble Tribunal. In support of its contention, the Assessee also filed its affidavit. Considering the reason for delay as genuine and the tenure of delay is miniscule, the delay stands condoned. 4. Coming to the merits of the case, we observe that in the instant case, the assessment was completed under section 143(3) on dated 25.01.2021 by the AO. However, the Ld. PCIT while exercising powers under section 263 of the Act, set-aside the assessment order with a direction to the AO to carry out due verification and enquiries qua computation of the interest expenditure claimed by the Assessee in accordance with law and thereafter pass fresh assessment order. It appears in paragraph-7 of the impugned order that two notices dated 24.02.2023 and 20.03.2023 respectively for the dates of hearing fixed on 08.03.2023 and 24.03.2023 were sent to the Assessee through e-mail, however, the Assessee made no compliance, therefore, the Ld. PCIT in the constrained circumstances passed the impugned order ex-parte. In our considered view as the ld. PCIT in the absence of submission/documents of the Assessee, failed to decide the case properly, hence for the just decision of the case and for the ends of justice, we deem it appropriate to remand the instant case to the file of the Ld. PCIT for decision afresh. Suffice to say by affording reasonable opportunity of being heard to the Assessee. The Assessee is also directed to appear and file the relevant documents, if any required by the Ld. PCIT, for proper and just decision of the case. 3 ITA No. 2189/Mum/2023 Amrish Jain 5. In the result, appeal filed by the Assessee stands allowed for statistical purposes. Order pronounced in the open court on 22-09-2023. Sd/- Sd/- Sd/- Sd/- (B.R. BASKARAN) (N. K. CHOUDHRY) Accountant Member Judicial Member Dated: 22/09/2023 SK, Sr.PS. Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. 5. Guard File CIT BY ORDER, (Dy./Asstt.Registrar) ITAT, Mumbai Sr. No. Details Date Initial Designation 4 ITA No. 2189/Mum/2023 Amrish Jain 1 Draft dictated on (dictation sheet enclosed with main file) 21.09.2023 Sr.PS/PS 2 Draft dictated on PC Sr.PS/PS 3 Draft Placed before author 22.09.2023 Sr.PS/PS 4 Draft proposed & placed before the Second Member JM/AM 5 Draft discussed/approved by Second Member JM/AM 6 Approved Draft comes to the Sr.PS/PS Sr.PS/PS 7 Order pronouncement on Sr.PS/PS 8 File sent to the Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head clerk 10 Date on which file goes to the AR 11 Date of Dispatch of order