TRANSFORMING STRUCTURES CONSTRUCTION PVT. LTD, MUMBAI V. CIT (A) -22, MUMBAI

ITA 588/MUM/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0549 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC-1
• Assessment Year: 2013-2014
• Appeal Filed On: 18-04-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Earning of tax free income; Set aside
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “SMC”, MUMBAI BEFORE SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER ITA No. 588/MUM/2021 Assessment Year: 2013-14 Transforming Structures Construction Private Limited, 118/3421 Pant Nagar, Ghatkopar (E), Mumbai - 400075 PAN: AADCT4152G Vs. ITO-14(3)(2), Room No. 458, Aayakar Bhavan, M.K. Road, Mumbai - 400020 (Appellant) (Respondent) Assessee by : None Revenue by : Ms. Bhoomika Patel (DR) Date of Hearing : 30/11/2021 Date of Pronouncement: 05/01/2022 O R D E R PER OM PRAKASH KANT, AM This appeal has been preferred by the assessee against the order dated 01.04.2021 passed by the National Faceless Appeal Centre (NFAC), Delhi (the Ld. First Appellate Authority), raising following grounds: “1. The Ld.CIT(A) erred in confirming addition of Rs. 7,53,000/- made in the assessment order by addition of disallowance expenditure u/s 14A as there is no expenses for earning exempt income during the year, without appreciating complete facts and circumstances of the case. 2. The Ld. CIT(A) erred in passing an exparte order without giving sufficient opportunity to present the case. As the 2 ITA No. 588/MUM/2021 Assessment Year: 2013-14 principle of natural justice are grossly violated, order passed confirming the additions made, may be quashed.” 2. At the outset, we may like to mention that despite notifying, neither anyone appeared on behalf of the assessee for representing in hearing nor any application seeking adjournment was filed. In the circumstance, the appeal was heard ex-parte qua the assessee after hearing arguments of the Ld. Departmental Representative. 3. We have heard submissions of the Ld. Departmental Representative. We find that this appeal has been heard by the ‘National Faceless Centre’ without providing an opportunity of being heard to the assessee. On perusal of the impugned order, we find no mention of any opportunity even for filing of written submission has been allowed to the assessee. In the circumstances, the impugned order being in violation of principle of natural justice, we feel it appropriate to set aside the impugned order and restore the matter back to the file of the Ld. First Appellate Authority having jurisdiction over the case for deciding afresh after providing adequate opportunity of being heard to the assessee. 4. In the result, the Ground No. 2 of the appeal of the assessee is allowed for statistical purposes. Other grounds are not required to be adjudicated adjudicated, as the appeal has been restored back to the Ld. First Appellate Authority. 5. In the result, the appeal of the assessee is allowed for statistical purposes. 3 ITA No. 588/MUM/2021 Assessment Year: 2013-14 Order pronounced in the open court on 5 th January, 2022. Sd/- Sd/- (AMARJIT SINGH) JUDICIAL MEMBER (OM PRAKASH KANT) ACCOUNTANT MEMBER म ुंबई Mumbai; दिन ुंक Dated: 05/01/2022 Alindra, PS आदेश प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आय क्त(अपील) / The CIT(A)- 4. आयकर आय क्त / CIT 5. दिभ गीय प्रदिदनदि, आयकर अपीलीय अदिकरण, म ुंबई / DR, ITAT, Mumbai 6. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, सत्य दपि प्रदि //True Copy// उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीिीय अतिकरण, म ुंबई / ITAT, Mumbai