KALPESHWARA BUILDERS & DEVELOPERS,THANE V. ACIT, CIRCLE-1, KALYAN

ITA 2734/MUM/2024

AI Insights

The case involves Kalpeshwara Builders & Developers appealing against the order of the National Faceless Appeal Centre (NFAC), which confirmed an addition of Rs.75,98,465 to the assessee's income, representing estimated profits at 5% of the closing value of work in progress for the Assessment Year 2017-18. The initial assessment was made ex-parte under section 144 of the Income Tax Act, resulting in a significant increase in the assessed income from a returned nil income to Rs.4,43,86,400. The assessee's appeal to the CIT(A) was dismissed on technical grounds for not properly admitting additional evidence. The Tribunal found that the CIT(A) should have considered the additional evidence and decided the appeal accordingly.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 469888 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 23-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 15-05-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUHAS DABADE; DR
• Assessee Lawyers: BHADRESH DOSHI
• Keywords: Opportunity of being heard; Additional evidence
• Section: 144

Judgement Text

"| आयकर अपीलीय अिधकरण \fा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI SANDEEP SINGH KARHAIL, HON’BLE JUDICIAL MEMBER I.T.A. No. 2734/Mum/2024 Assessment Year: 2017-18 Kalpeshwara Builders & Developers Shop No. 2, Hariom Apt. Nr. Chopra Court Opp. Wellness Medical Ulhasnagar, Thane Maharashtra - 421003 [PAN: AAHFK5653Q] Vs ACIT, Circle-1, Kalyan अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Bhadresh Doshi, C.A. Revenue by : Shri Suhas Dabade, Sr. D/R सुनवाई की तारीख/Date of Hearing : 23/10/2024 घोषणा की तारीख /Date of Pronouncement: 23/10/2024 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 31/03/2024 passed by NFAC [hereinafter ‘ld. CIT(A)], Delhi pertaining to AY 2017-18. 2. The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in dismissing the appeal without admitting the additional evidence and further erred in confirming the addition of Rs.75,98,465/- representing alleged estimated profits @5% of the closing value of work in progress. I.T.A. No. 2734/Mum/2024 2 3. Briefly stated, the facts of the case are that the assessment was framed u/s 144 of the Act vide order dated 08/12/2019 wherein the returned Nil income of the assessee was assessed at Rs.4,43,86,400/-. 4. The ex-parte assessment was challenged before the ld. CIT(A) wherein the assessee furnished certain evidence which were not accepted by the ld. CIT(A) who was of the firm belief that the assessee without filing any application for the admission of additional evidence relied upon the evidence. The appeal of the assessee was dismissed and the additions made by the AO were sustained. 5. We have given a thoughtful consideration the orders of the authorities below. It is true that the assessee did not avail the opportunity given by the AO and the AO, to avoid the period of limitation passed the assessment order ex-parte u/s 144 of the Act. It is equally true that the assessee before the ld. First Appellate Authority has furnished documentary evidence in support of its appeal, but the same were not accepted by the ld. CIT(A) on the technical ground that no proper application was made by the assessee. 6. We are of the considered view that the ld. CIT(A) ought to have accepted the evidence and decided the appeal accordingly. Therefore, in the interest of justice and fair play, we deem it fit to restore the appeal to the file of the AO. The assessee is directed to attend the assessment proceedings and comply with the queries and the AO is directed to decide the issues afresh after affording a reasonable and adequate opportunity of being heard to the assessee. I.T.A. No. 2734/Mum/2024 3 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 23rd October, 2024 at Mumbai. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 23/10/2024 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0015ितिलिप अ\u001aेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001c / The Appellant 2. \u0015\u001dथ\u001c / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "