SPICE OF LIFE HOTELS PRIVATE LIMITED, MUMBAI V. CIT(APPEALS), NFAC, DELHI

ITA 520/MUM/2023

AI Insights

The case involves Spice of Life Hotels Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The appeal was concerning the disallowance made under section 14A of the Income Tax Act, 1961, during the reassessment of the assessee's income for the Assessment Year 2014-15. Initially, the assessee declared a loss in its return, which was later adjusted by the Assessing Officer. The case was reopened under section 147 due to alleged income escaping assessment, leading to a revised loss figure and the disallowance under section 14A. The CIT(A) confirmed these adjustments in an ex parte order, which the assessee contested in the Tribunal, seeking a re-hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299431 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 02-05-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 21-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A. NO. BHALEKAR
• Section: 147; 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI OM PRAKASH KANT, AM AND MS. KAVITHA RAJAGOPAL, JM IT A N o. 520 /M u m / 20 23 ( A s s e ss me nt Y ea r: 20 1 4- 15 ) Spice of Life Hotels Private Limited 1 Somnath Ram Mandir Road, Vile Parle (E), Mumbai-400 057 V s. CIT(A), NFAC Delhi P A N / G I R N o. AA P CS 37 0 6 D (Appellant) : (Respondent) Assessee by : Shri Ronak Doshi & Sukanya Jayaram Revenue by : Shri A. No. Bhalekar D a te o f H e a r i n g : 03.05.2023 D ate of P ro n ou n ce me n t : 04.05.2023 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) 2014-15. 2. The assessee has challenged the grounds of reopening, disallowance made u/s. 14A of the Act along with the other consequential grounds. 3. The brief facts are that the assessee filed its return of income dated 27.09.2013, declaring total loss of Rs.19,15,726/-. The assessee’s case was selected for scrutiny and the assessment order dated 06.12.2017 was passed u/s. 143(3) of the Act where the A.O. determined the loss at Rs.1,46,31,252/-. The assessee’s case was reopened u/s. 147 of the 2 ITA No. 5 2 0 / M u m / 2 0 2 3 ( A . Y . 2 0 1 4 - 1 5 ) Spice of Life Hotels Private Limited vs. CIT(A) Act for the reason that the income has escaped assessment thereby passing the impugned assessment order dated 28.03.2022 u/s. 147 r.w.s. 144B of the Act and determined the total income at a loss of (-)Rs.1,26,53,867/- where the A.O. made disallowance u/s. 14A amounting to Rs.19,77,385/-. 4. Aggrieved the assessee was in appeal before the ld. CIT(A), who confirmed the said addition/disallowance vide an ex parte order dated 22.12.2022. The assessee is in appeal before us, challenging the said order. 5. During the appellate proceeding, the ld. AR for the assessee prayed that the assessee may be given one more opportunity to present its case before the ld. CIT(A). The ld. AR stated that the assessee has got a good case and further assured compliance before the ld. CIT(A). 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. It is observed that the ld. CIT(A) has passed an ex parte order without going into the merits of the case. As the assessee has sought for to present its case before the ld. CIT(A), we are of the considered view that on the principles of natural justice, the assessee may be given one more opportunity to present its case before the ld. CIT(A). We, therefore, remand this issue back to the file of the ld. CIT(A) and direct the assessee to present its case without any delay. Needless to say, the ld. CIT(A) may decide the appeal on merits after giving adequate opportunity of hearing to the assessee. 3 ITA No. 5 2 0 / M u m / 2 0 2 3 ( A . Y . 2 0 1 4 - 1 5 ) Spice of Life Hotels Private Limited vs. CIT(A) 8. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 04.05.2023 Sd/- Sd/- (Om Prakash Kant) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 04.05.2023 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