M/S. TOPMAN INTERNATIONAL LTD., MUMBAI V. ACIT, CIR-11(3)(1), MUMBAI

ITA 738/MUM/2023

AI Insights

M/s. Topman International Ltd. appealed against the order of the CIT(A) which upheld the addition of Rs. 95,33,213 as unexplained cash deposit during the demonetization period under section 68 of the Income Tax Act, 1961. The assessee contended that the ex parte order violated the principles of natural justice as they were not given sufficient opportunity to represent their case. The Income Tax Appellate Tribunal (ITAT) found merit in the assessee's plea for another opportunity to present their case and remanded the issue back to the CIT(A).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299177 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 29-05-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 09-03-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 68; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI OM PRAKASH KANT, AM AND MS. KAVITHA RAJAGOPAL, JM IT A N o. 738 /M u m / 20 23 ( A s s e ss me nt Y ea r: 20 1 7- 18 ) M/s. Topman International Ltd. J-303, 3 rd Floor, Tex Centre, Near HDFC Bank, Off Saki Vihar Road, Chandiwali Andheri (E), Mumbai-400 072 V s. ACIT, Circle – 11(3)(1) Room No. 427, 4 th Floor, Aayakar Bhavan, M. K. Road, Mumbai-400 020 P A N / G I R N o. AA CC T 3 3 4 7 G (Appellant) : (Respondent) Assessee by : Ms. Vinita Shah Revenue by : Ms. Richa Gulati D a te o f H e a r i n g : 30.05.2023 D ate of P ro n ou n ce me n t : 21.08.2023 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) 2017-18. 2. The assessee has challenged the ex parte order of the ld. CIT(A) on the ground of violation of principles of natural justice and has also challenged the addition made u/s. 68 of the Act amounting to Rs.95,33,213/- being the cash deposit made during the demonitisation period. 2 ITA No. 7 3 8 / M u m / 2 0 2 3 ( A . Y . 2 0 1 7 - 1 8 ) M/s. Topman International Ltd. vs. ACIT 3. The brief facts are that the assessee is a domestic company engaged in the business of manufacturing and trading of textiles. The assessee had filed its return of income dated 13.10.2017, declaring total income at Rs.47,80,590/- under the normal provisions and Rs.49,38,649/- under MAT provisions and the assessee’s case was selected for complete scrutiny for the reason that there was cash deposit during demonetization period and the assessment order dated 24.12.2019 was passed u/s. 143(3) of the Act where the Assessing Officer ('A.O.' for short) determined the total income at Rs.1,43,13,802/- by making an addition of Rs.95,33,213/- u/s. 68 of the Act as unexplained cash deposit during demonitisation period. 4. The assessee was in appeal before the ld. CIT(A) challenging the impugned addition made by the A.O. The ld. CIT(A) vide ex parte order dated 11.03.2022 upheld the addition made by the A.O. 5. The assessee is in appeal before us, challenging the ex parte order of the ld. CIT(A). 6. The learned Authorised Representative ('ld. AR' for short) for the assessee contended that the assessee was not given sufficient opportunity to represent its case before the first appellate authority and prayed that the matter shall be remanded back to the file of the ld. CIT(A) for giving one more opportunity to the assessee to present its case before the ld. CIT(A). 7. The learned Departmental Representative ('ld.DR' for short), on the other hand, vehemently opposed for remanding the issue back to the file of the ld. CIT(A). The ld. 3 ITA No. 7 3 8 / M u m / 2 0 2 3 ( A . Y . 2 0 1 7 - 1 8 ) M/s. Topman International Ltd. vs. ACIT DR further contended that the assessee was given sufficient opportunity to present its case before the ld. CIT(A) and the assessee had failed to substantiate its claim before the lower authorities. 8. We have heard the rival submissions and perused the materials available on record. It is evident that the assessee has not substantiated its claim before the first appellate authority, as it has been non compliant inspite of several opportunities. The assessee has not filed any documentary evidence to show the identity and creditworthiness of the creditor and the genuineness of the transaction in order to discharge its onus casted upon it u/s. 68 of the Act. The ld. CIT(A) has upheld the addition for the reason that the assessee has not furnished any evidences to support its claim. On considering the submission of the ld. AR, we deem it fit to remand this issue back to the file of the ld. CIT(A) to extend one more opportunity to the assessee to present its case before the first appellate authority. The assessee is directed to comply with the proceeding without any further delay and the ld. CIT(A) is directed to decide the issue on merits based on the submission proposed to be made by the assessee. Hence, this issue is remanded back to the file of the ld. CIT(A) for de nonvo adjudication. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 21.08.2023. Sd/- Sd/- (Om Prakash Kant) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 21.08.2023 Roshani , Sr. PS 4 ITA No. 7 3 8 / M u m / 2 0 2 3 ( A . Y . 2 0 1 7 - 1 8 ) M/s. Topman International Ltd. vs. ACIT 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