M/S. SAP HOLDINGS & LEASING pVT. LTD, MUMBAI V. THE ACIT CIRCLE-8(1) (2) , Mumbai

ITA 2387/MUM/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 7432 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Appeal Filed On: 19-12-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI PAVAN KUMAR GADALE, JM ITA No. 2387/Mum/2021 (Assessment Year 2017-18) S A P Ho ld in gs & L e a sin g P vt. L td . 5 3 , Da tta B h a va n , V .M. L a n e , Go kh a le ro a d ( No rt h ), Da d a r (W e st), Mu m b a i-4 0 0 0 2 8 Vs. The ACIT, Circle 8(1)(2) Room No.625, Aaykar Bhavan, MK Road, Mumbai-400 020 (Appellant) (Respondent) PAN No. AAFCS 7429 B Assessee by : Shri Prakash Jani, AR Revenue by : Shri S. Anbuselvam, DR Date of hearing: 14.07.2022 Date of pronouncement : 14.07.2022 O R D E R PER PRASHANT MAHARISHI, AM: 01. This appeal is filed by assessee against the order passed by the learned Commissioner of income-tax (Appeal), National Faceless Appeal Centre, Delhi [the learned CIT(A)] for A.Y. 2017-18 dated 1 st December, 2021, wherein the appeal filed by the assessee against the order dated 30 th December, 2019 passed by the ACIT, Circle 1(2), Mumbai (the learned Assessing Officer) under Section 143(3) of the Act, assessing the total income of assessee at ₹1,63,16,512/- was dismissed applying the decision of Delhi ITAT in case of CIT Vs. Multi plan India Ltd. (38 ITD 320) (Delhi) as assessee did not respond to Page | 2 ITA No.2387/Mum/2021 M/s. SAP holdings & leasing Pvt. Ltd.; A.Y. 17-18 four notices issued. Therefore, assessee aggrieved is in appeal before us. 02. The brief fact of the case shows that assessee is a company engaged in the business of sale and service of motor vehicle and spare parts. It filed its return of income on 30 th October, 2017 at a total income of ₹38,70,170/-. There were 12 notices issued by the learned Assessing Officer in the complete scrutiny of the above wherein assessee failed to submit the requisite details and accordingly, the assessment order under Section 143(3) of the Act was passed determining the total income of the assessee at ₹1,63,16,512/-. The learned Assessing Officer disallowed the payment of MMNC cess of ₹74,77,131/-, remuneration paid to directors of Rs.14,40,000/- and unexplained cash credit of Rs.35,29,208/-. 03. On appeal before the learned CIT(A), once again assessee did not go and CIT(A) dismissed the appeal applying the decision of Multi Plan India Limited (supra). 04. We have carefully considered the rival arguments. Assessee has also field additional evidences before us. Assessee has also stated that during the pandemic period the notices were issued by the learned CIT(A) and ultimately dismissed for non-compliance. It also upheld the decision on merits without discussing them and giving any independent reasoning. We find that the order of the National Faceless Appeal Centre has disposed off the appeal of the assessee for non-compliance also . In fact, the learned CIT(A) should have disposed off the Page | 3 ITA No.2387/Mum/2021 M/s. SAP holdings & leasing Pvt. Ltd.; A.Y. 17-18 appeal only on the merits of the case as per information available on record giving its independent findings. However, assessee has also not submitted the details before the learned Assessing Officer as well as before learned CIT(A). Though before ld CIT (A) , issue of pandemic may arise but not before ld AO , there also assessee failed to furnish the requisite information. 05. On the facts and circumstances of the case, In the interest of justice, we restore the matter back to the file of the learned Assessing Officer with following directions:- i. Assessee should deposit of Rs.15,000/- towards Prime Minister National Relief Fund for non compliance before the learned Assessing Officer as well as before the learned CIT(A) within 30 days of this order. ii. Assessee should submit all the details before the learned Assessing Officer within 60 days of the deposit of funds to the Prime Minister National Relief Fund before the learned Assessing Officer. iii. The assessee on submission of the detail approach to the learned Assessing Officer for any further submission of the details. iv. The learned Assessing Officer is directed to examine issue in detail, giving an opportunity of hearing to the assessee and decide the issue afresh. Page | 4 ITA No.2387/Mum/2021 M/s. SAP holdings & leasing Pvt. Ltd.; A.Y. 17-18 06. In the result, the appeal of the assessee is allowed with above directions. Order pronounced in the open court on 14.07.2022 Sd/- Sd/- (PAVAN KUMAR GADALE) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated: 14.07.2022 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The CIT(A) 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai