M/S. MAULI SAI DEVELOPERS PVT LTD., MUMBAI V. INCOME TAX DEPARTMENT, NFAC, DELHI, DELHI

ITA 318/MUM/2023

AI Insights

The case involves M/s. Mauli Sai Developers Private Limited appealing against the order dated 09/12/2022 for the assessment year 2012-13, which was passed under section 143(3) of the Income Tax Act. The appeal challenges various additions made by the Assessing Officer (AO) and the exparte order passed by the ld. CIT(A). The additions included income from house property, profits from projects recognized by the Percentage Completion Method, and unexplained cash credits, among others. The tribunal noted that the assessee had previously engaged in physical hearings but faced issues in responding to notices after the case was transferred to the National Faceless Appeals Centre (NFAC), leading to an exparte decision. The tribunal decided to remit the case back to the CIT(A) for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302348 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 16-07-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 01-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 68; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D‘ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA No.318/Mum/2023 (Assessment Year :2012-13) M/s. Mauli Sai Developers Private Limited 2702 A/B, Oberoi Garden I-II Off. W. Express Highway, Kandiwali East Mumbai – 400 101 Vs. Income Tax Department National Faceless Appeals Centre Delhi PAN/GIR No.AAECM0577F (Appellant) .. (Respondent) Assessee by Shri Madhur Agrawal Revenue by Smt. Mahita Nair Date of Hearing 17/07/2023 Date of Pronouncement 19/07/2023 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against the order dated 09/12/2022 for the quantum of assessment passed u/s. 143(3) for the A.Y.2012-13. 2. In various grounds of appeal assessee has challenged the exparte order passed by the ld. CIT (A) without merits and ITA No.318/Mum/2023 M/s. Mauli Sai Developers Pvt. Ltd. 2 challenged various additions made by the ld. AO which are as under:- 1. Addition of Rs.6,82,190/- under the head "Income from House Property" as Rental Income on account of Maintenance Charges collected in respect of Mauli Bharat Udyonagar. 2. Addition of Rs. 1,49,67,065 as profits from three projects by following Percentage Completion Method for recognition of revenue instead of Project Completion Method followed by the Appellant. 3. Addition of Rs. 15,00,000 in respect of receipt of old project (Mauli Chayya) which was taxed in earlier year. 4. Addition of Rs. 4,99,500 under section 68 on account of unexplained cash credit. 5. Addition of Rs. 49,82,906 without providing any explanation in the assessment order. 3. Before us ld. Counsel for the assessee submitted that earlier this appeal was taken up for hearing on a physical mode before the ld. CIT(A) and before the ld. CIT(A) various hearing had been undertaken and assessee had filed written submissions as well as appeared physically before the First Appellate Authority. Later on the assessee’s case was transferred to NFAC and after a long gap, the notices were sent to the assessee, which cannot be responded by the authorised representative. He also pointed out that last notice which was sent on 01/11/2022, it was only mentioned on the portal that it is open for communication and window is open and no date was mentioned. Accordingly, he requested that in the interest of justice matter ITA No.318/Mum/2023 M/s. Mauli Sai Developers Pvt. Ltd. 3 should be restored back to the file of First Appellate Authority (NFAC) so as to make proper representation on facts. 4. After hearing both the parties and on perusal of the material placed on record, we find that it is not in dispute that assessee has filed all the details and written submissions physically before the ld. CIT(A) when the hearing was continuing on physical mode. Later on, the case was transferred to NFAC. The assessee could not file any explanation on the portal and it is for this reason the ld. CIT (A) has decided the appeal exparte. In light of these facts and circumstances and in the interest of justice, we are remitting all the issues raised before us back to the file of ld. CIT(A) (NFAC) to decide the issue afresh and in accordance with the law and assessee is also directed to comply with the notices and also update the communication e-mail ID. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 19 th July, 2023. (AMARJIT SINGH) (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 19/07/2023 KARUNA, sr.ps ITA No.318/Mum/2023 M/s. Mauli Sai Developers Pvt. Ltd. 4 Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy//