M/S. MAHAK CREATION PRIVATE LIMITED,AHMEDABAD V. THE ITO, WARD-2(1)(1), AHMEDABAD

ITA 20/AHD/2025

AI Insights

The case involves M/s. Mahak Creation Private Limited appealing against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which confirmed the Assessing Officer's addition of Rs.48,19,870 as an undisclosed transaction and upheld the charges of interest and initiation of penalty under various sections of the Income Tax Act. The primary contention was the ex-parte nature of the decision and the merits of the additions made by the Assessing Officer. The Income Tax Appellate Tribunal found that the assessee had not responded to multiple notices and thus remanded the case for a fresh assessment, providing the assessee another opportunity to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707044 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 03-01-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURESH CHAND MEENA
• Assessee Lawyers: MOHIT BALANI
• Keywords: Accommodation entries

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.20/Ahd/2025 (Assessment Year: 2018-19) M/s. Mahak Creation Private Limited, Mittal House, Atira Road, Ambawadi, Ahmedabad-380015. [PAN :AAECM7657 E] Vs. Income Tax Officer, Ward-2(1)(1), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Mohit Balani, AR Respondent by: Shri Suresh Chand Meena, Sr. DR Date of Hearing 03.07.2025 Date of Pronouncement 09.07.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 16.12.2024 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2018-19. 2. The assessee has raised the following grounds of appeals: 1. Learned CIT(A) has erred in law and on the facts of the case in passing the impugned order, ex-parte without deciding the merits 2. Learned CIT(A) has erred in law and on the facts in confirming the action of Ld.AO in making an addition of Rs.48,19,870/- as undisclosed transaction on account of alleged accommodation entries from various concerns. ITA No. 20/Ahd/2025 M/s. Mahak Creation Pvt. Ltd. Vs. ITO Asst. Year : 2018-19 - 2– 3. Learned CIT(A) has erred in law and on the facts in confirming the action of AO in charging interest u/s.234 A/B/C/D. 4. Learned CIT(A) has erred in law and on the facts in confirming the action of AO in initiating penalty u/s.271AAC of the Act which is wholly unsustainable in law and on facts of the case. 3. On going through the record, we find that the notices u/s.250 were issued on 02.05.2023, 14.10.2024, 29.10.2024 & 11.11.2024, requesting the assessee to submit certain details/clarification/ explanation regarding undisclosed transaction. However, in pursuance to the same the assessee failed to submit any reply and the Ld. CIT(A) confirmed the action of the Assessing Officer by dismissing the appeal of the assessee. The Ld. Counsel for the assessee prayed that, given an opportunity, all the details/clarification/explanation would be provided to the revenue authorities. Hence, in the interest of justice the matter is remanded to the Ld.CIT(A) for conducting assessment de-novo. The assessee shall submit all the relevant bank statement/submission/document before the Ld.CIT(A) and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments. 4. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 09.07.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 09.07.2025 MV ITA No. 20/Ahd/2025 M/s. Mahak Creation Pvt. Ltd. Vs. ITO Asst. Year : 2018-19 - 3– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "