MAARS INFRATECH PRIVATE LIMITED ,MUMBAI V. DCIT, CENTRAL CIRCLE 7(4), MUMBAI

ITA 1355/MUM/2025

AI Insights

Maars Infratech Private Limited filed three separate appeals against the orders of the CIT(A)-49, Mumbai, for the assessment years 2017-18, 2018-19, and 2020-21. These appeals were consolidated due to common issues involved. The case stemmed from a search and seizure operation under section 132 of the Income Tax Act conducted on KSS Group, which led to the centralization of Maars Infratech's case under Central Circle - 7(4), Mumbai. The AO initially issued ex-parte orders under section 144 read with section 153C of the Act due to non-responsiveness from the assessee. The CIT(A) upheld these orders, noting the absence of any substantiating evidence or arguments from the appellant. However, referencing a similar case for the preceding assessment years, the Tribunal decided to set aside the AO's orders and remand the cases for a fresh assessment, emphasizing the need for a fair opportunity to be heard.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312380 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2020-2021
• Other Referred Cases: Pr. CIT v. Abhisar Buildwell (P.) Ltd. [2023] 454 ITR 212
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BEENA SANTOSH; DR
• Assessee Lawyers: GOPAL SHARMA HYBRID
• Keywords: Set aside; Opportunity of being heard; Search and seizure
• Section: 144; 132

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 1356/Mum/2025 Assessment Year: 2017-18 Maars Infratech Private Limited H Sawant CHL Wadi TM Azad Nagar Andheri (West) Mumbai - 400058 [PAN:AAFCM8571Q] Vs DCIT, Central – 7(4), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) I.T.A. No. 1357/Mum/2025 Assessment Year: 2018-19 Maars Infratech Private Limited H Sawant CHL Wadi TM Azad Nagar Andheri (West) Mumbai - 400058 [PAN:AAFCM8571Q] Vs DCIT, Central – 7(4), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) I.T.A. No. 1355/Mum/2025 Assessment Year: 2020-21 Maars Infratech Private Limited H Sawant CHL Wadi TM Azad Nagar Andheri (West) Mumbai - 400058 [PAN:AAFCM8571Q] Vs DCIT, Central – 7(4), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Gopal Sharma (Hybrid) Revenue by : Smt. Beena Santosh, D/R सुनवाई की तारीख/Date of Hearing : 28/04/2025 घोषणा की तारीख /Date of Pronouncement: 30/04/2025 I.T.A. No. 1356/Mum/2025 I.T.A. No. 1357/Mum/2025 I.T.A. No. 1355/Mum/2025 2 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: I.T.A. No. 1356/Mum/2025, I.T.A. No. 1357/Mum/2025 & I.T.A. No. 1355/Mum/2025 are three separate appeals by the assessee preferred against the order of the ld. CIT(A)-49, Mumbai dated 30/12/2024, [hereinafter ‘the ld. CIT(A)’] pertaining to AYs 2017-18, 2018-19 & 2020-21 respectively. 2. Since common issues are involved in the captioned appeals, they were heard together and are disposed off by this common order for the sake of convenience and brevity. 3. Briefly stated the facts of the case are that a search and seizure action u/s 132 of the Act was conducted in case of KSS Group on 09/07/2019. Consequent upon the search, the case of the assessee was centralized in the charge of Central Circle - 7(4), Mumbai. The documents and material evidences/information seized during the course of search had bearing on the income of the assessee company. Therefore, after recording satisfaction note, proceedings u/s 153C of the Act were initiated and accordingly, notices were issued and served upon the assessee. Several notices were issued but were not responded by the assessee and the AO was compelled to frame ex-parte order u/s 144 r.w.s. 153C of the Act. 4. The ld. First Appellate Authority also issued several notices and, on each occasion, the assessee sought adjournment which prompted the ld. CIT(A) to conclude as follows:- “6.11 It is, thus, evident that the appellant has no evidence to substantiate the grounds taken and it has not even once argued with any supporting, relevant and I.T.A. No. 1356/Mum/2025 I.T.A. No. 1357/Mum/2025 I.T.A. No. 1355/Mum/2025 3 cogent arguments/averments. Thus, the appellant has failed to substantiate the grounds of appeal raised. Under the circumstances, I am not in a position to grant any relief to the appellant. Accordingly, I uphold the order of the AO, and the grounds of appeal raised by the appellant are DISMISSED.” 5. Before us, the ld. Counsel for the assessee drew our attention to the order of the ld. First Appellate Authority dated 12/03/2025 and pointed out that in the appeals of the remaining block period i.e., AYs 2014-15, 2015-16 & 2016-17, the ld. CIT(A) has remanded the matter to the file of the AO invoking the powers conferred upon him by the provisions of Section 251(1)(a) of the Act and prayed from restoration of the issues to the files of the AO. The ld. D/R did not raise any objections. 6. We have carefully perused the orders of the authorities below. The undisputed fact is that the order of the AO and that of the ld. CIT(A) are ex-parte. We find that the same ld. CIT(A) in AY 2014-15, 2015-16 & 2016-17 has set aside the matter. The relevant findings read as under:- “10.6 I have considered the submission of the appellant. The contention of the appellant that the notice u/s 143(2) is issued beyond time does not have any merits because the appellant has linked the notice issued in the assessment proceedings u/s 153C to the date of the original return filed u/s 139(1) of the Act and not with the date of return filed in response to notice u/s 153C. It is seen that the assessment order has been passed u/s 144 of the Act. Considering the submission made by the appellant, I feel the matter needs to be re-examined by the AO. Therefore, in exercise of the powers granted under proviso to section 251(1)(a), the assessment order is set aside to the file of the Assessing officer with directions to make a fresh assessment. Further, following the decision of the Hon'ble Supreme Court in case of Pr. CIT v. Abhisar Buildwell (P.) Ltd. [2023] 454 ITR 212, the AO shall not make any addition in the completed/unabated assessments, in absence of any incriminating material. In case of abated assessments AO is free to make additions based on facts on record. Needless to say, the appellant shall be granted fair opportunity to be heard before passing of the order.” 7. As the impugned assessment order is also framed u/s 144 of the Act and as the appeals for other assessment years of the block period I.T.A. No. 1356/Mum/2025 I.T.A. No. 1357/Mum/2025 I.T.A. No. 1355/Mum/2025 4 have been set aside, facts being identical, we deem it proper to restore the captioned appeals to the files of the AO. The AO is directed to follow the directions given by the ld. CIT(A) in his order dated 12/03/2025 for the assessment years under consideration also. 8. In the result, the captioned appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the Court on 30th April, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 30/04/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0014ितिलिप अ\u0019ेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "