LABH VENTURES INDIA PRIVATE LIMITED ,MUMBAI V. ACIT CIRCLE 15(1)(2), MUMBAI

ITA 5724/MUM/2025

AI Insights

The case involves Labh Ventures India Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, Delhi. The original assessment for the year 2022-23 included additions to deemed income under section 68, disallowance of expenses under section 37(1), and taxation of exempt income as business income, resulting in a significant increase in assessed income compared to the returned loss. The assessee's appeal to the CIT(A) was dismissed, leading to the current appeal before the Income Tax Appellate Tribunal. The Tribunal found that the CIT(A) had not accurately recorded the assessee's submissions and remitted the case for a fresh decision.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 846267 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Mumbai
• Assessment Year: 2022-2023
• Appeal Filed On: 16-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAV
• Assessee Lawyers: MADHUR AGRAWAL
• Keywords: Business income; Opportunity of being heard; Earning of tax free income; Deemed to accrue or arise in india
• Section: 143(3); 68; 37(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “A” BENCH : MUMBAI BEFORE SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER AND MS. KAVITHA RAJAGOPAL, JUDICIAL MEMBER ITA No. 5724/Mum/2025 Assessment Year : 2022-23 Labh Ventures India Private Limited, Office 211, 2nd Floor, Flying Colors, Pr.Din Dayal Upadhyay Marg, LBS Cross Road, Mulund (W) Mumbai-400080. PAN : AACCL8106H vs. Asst. Commissioner of Income Tax, Circle-15(1)(2), Aayakar Bhavan, Maharshi Karve Road, New Marinelines, Mumbai-400020. (Appellant) (Respondent) For Assessee : Shri Madhur Agrawal For Revenue : Shri Rajesh Kumar Yadav, CIT-DR Date of Hearing : 12-03-2026 Date of Pronouncement : 23-03-2026 O R D E R PER VIKRAM SINGH YADAV, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi [„Ld.CIT(A)‟], dated 27-08-2025, pertaining to Assessment Year (AY) 2022-23. 2. Briefly, the facts of the case are that the assessment in this case was completed u/s. 143(3) r.w.s. 144B of the Income Tax Act, 1961 („the Act‟), vide order dt. 05-03-2024, wherein the AO has made certain additions in Printed from counselvise.com 2 ITA No. 5724/Mum/2025 terms of deemed income u/s. 68 of the Act, disallowance of expenses u/s. 37(1) of the Act and exempt income which was brought to tax as business income and assessed income was determined at Rs. 9,25,12,186/- as against the returned loss of Rs. 2,26,87,696/ in absence of any compliance made by the assessee to the various notices and show cause issued by the AO. The assessee thereafter carried the matter in appeal before the Ld.CIT(A), who has since confirmed the findings of the AO and the appeal of assessee was dismissed. Against the said order, the assessee is in appeal before us. 3. During the course of hearing, the Ld.AR submitted that admittedly there was non-compliance at the time of assessment proceedings. However, during the course of appellate proceedings, the assessee has filed detailed written submissions along with supporting documentation. However, the Ld.CIT(A) has returned the finding that the assessee has not filed any written submissions and has summarily dismissed the appeal so filed by the assessee. Our reference was drawn to the impugned order of the Ld.CIT(A), where the Ld.CIT(A) has reproduced the assessee‟s submissions against each of the grounds of appeal and at the same time, while recording the findings, the Ld.CIT(A) has stated that the assessee has not submitted any written submissions. It was accordingly submitted that the said findings of the Ld.CIT(A) are factually incorrect and given that necessary submissions have already been filed along with supporting documentation before the Ld.CIT(A), the matter may be remanded to the file of the Ld.CIT(A) to decide the same afresh, after providing opportunity of being heard to the assessee. 4. Per contra, the Ld.DR is heard, who has not raised any specific objection, where the matter is remitted to the file of the Ld.CIT(A). Printed from counselvise.com 3 ITA No. 5724/Mum/2025 5. After hearing both the sides, considering the material available on record and in the light of the limited prayer so raised by the Ld.AR on behalf of the assessee, the matter is remitted to the file of the Ld.CIT(A) to decide the same afresh as per law, after providing reasonable opportunity of being heard to the assessee. We also direct the assessee to fully co- operate with the Ld.CIT(A) for expeditious disposal of the matter and is at liberty to file necessary explanation / documentation as so advised. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 23-03-2026 Sd/- Sd/- [MS. KAVITHA RAJAGOPAL] [VIKRAM SINGH YADAV] JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 23-03-2026 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, ITAT, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai Printed from counselvise.com "