REGUS BUSINESS CENTRE (NAGPUR) PRIVATE LIMITED, MUMBAI V. ASSISTANT COMMISSIONER OF INCOME TAX-(OSD)-3(2) , MUMBAI

ITA 29/MUM/2023

AI Insights

The case involves Regus Business Centre (Nagpur) Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre. The appeal pertained to various additions and disallowances made by the Assessing Officer during the assessment year 2011-12, which were confirmed by the CIT(A) through an ex parte order. The primary contention was the disallowances related to advertisement, legal and professional expenses, and management fees, which resulted in a revised total loss figure. The Tribunal, considering the principles of natural justice, decided to remand the case back to the Assessing Officer, allowing the assessee another opportunity to present its case with supporting documents.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125901 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 08-03-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 04-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM IT A N o. 29 /M u m/ 2 02 3 ( A s s e ss me nt Y ea r: 20 1 1- 12 ) Regus Business Centre (Nagpur) Private Limited Level 13, T-Tech Park, Nirlon Knowledge Park, Off. Western Express Highway, Goregaon (E), Mumbai-400 063 V s. Asst. CIT(OSD)-3(2) Mumbai P A N / G I R N o. AA D CR 7 33 8 G (Appellant) : (Respondent) Assessee by : Shri Ketan Ved Revenue by : Smt. Mahita Nair D a te o f H e a r i n g : 09.03.2023 D ate of P ro n ou n ce me n t : 31.03.2023 O R D E R Per Kavitha Rajagopal, J M: This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Appeals) (‘ld.CIT(A) for short), National Faceless Appeal Centre (‘NFAC’ for short) u/s.250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2011-12. 2. The assessee has challenged the various additions/disallowances made by the Assessing Officer (A.O. for short) and confirmed by the ld. CIT(A) by way of an ex parte order. 2 ITA No. 2 9 / M u m / 2 0 2 3 ( A . Y . 2 0 1 1 - 1 2 ) Regus Business Centre (Nagpur) Private Limited vs. Asst. CIT(OSD) 3. The brief facts are that the assessee is engaged in the business to establish, operate, manage, control and deal in any manner with fully and partly furnished staffed and equipped or otherwise service offices or commercial accommodation including one or more offices, cyber cafes and offering ancillary business services. The assessee filed its return of income dated 25.11.2011, declaring current year losses of Rs.1,06,37,445/-. The assessee’s case was selected for scrutiny and the assessment order dated 17.02.2014 was passed u/s. 143(3) of the Act where the Assessing Officer (A.O. for short) made various disallowances on advertisement, legal and professional expenses, management fees and determined the total loss of Rs.77,70,060/-. The assessee challenged the said order before the ld. CIT(A) who dismissed the said appeal on the ground that the assessee has failed to furnish any reply or documentary evidences in support of its claim. 4. The assessee is in appeal before us. 5. The learned Authorised Representative (ld. AR for short) for the assessee prayed that the assessee may be provided with a last opportunity to present its case before the A.O. by furnishing documentary evidences in support of its claim. 6. The learned Departmental Representative (ld. DR for short) for the Revenue had nothing to controvert the same. 7. We have heard the rival submissions and perused the materials available on record. In the interest of principles of natural justice, we deem it fit and proper to provide the assessee with one last opportunity to present its case before the A.O. The assessee is directed to submit the relevant evidences in support of its claim without any undue delay. 3 ITA No. 2 9 / M u m / 2 0 2 3 ( A . Y . 2 0 1 1 - 1 2 ) Regus Business Centre (Nagpur) Private Limited vs. Asst. CIT(OSD) The ld. A.O. is directed to pass the order on merits after considering the submissions of the assessee. Hence, this matter is remanded back to the file of the A.O. 8. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 31.03.2023 Sd/- Sd/- (Prashant Maharishi) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 31.03.2023 Roshani , Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai