MANAN TRADING COMPANY PRIVATE LIMITED,MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX, CC-1(1), MUMBAI

ITA 5088/MUM/2025

AI Insights

Manan Trading Company Pvt. Ltd. appealed against the orders of the Commissioner of Income Tax (Appeals)-47, Mumbai, which affirmed the Assessing Officer's decision adding Rs. 8,00,595 as accommodation entry, being 1% of the total business turnover/sales. The Tribunal noted that the assessee had not made effective compliance or substantive submissions despite multiple opportunities. However, due to the lack of relevant submissions and documents, the Tribunal decided to remand the case for a fresh decision to ensure substantial justice, subject to a monetary condition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780360 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2020-2021
• Appeal Filed On: 19-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT SANJAY GURAV; LD.
• Assessee Lawyers: PRATEEK JAIN; LD
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI “SMC” BENCH:: MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA Nos. 5088 & 5089/MUM/2025 (Assessment Years: 2020-21 & 2022-23) Manan Trading Company Pvt. Ltd., 325, Amrit Diamond House, Tata Road No.1, Opera House, Girgaon S.O. Mumbai. PAN: AADCM 5896 J Vs. DCIT, Central Circle-1(1), Mumbai. (Appellant) (Respondent) Present for: Assessee by : Shri Prateek Jain, Ld. CA Revenue by : Shri Amit Sanjay Gurav, Ld. Sr.D.R. Date of Hearing : 06.10.2025 Date of Pronouncement : 06.10.2025 O R D E R These appeals have been preferred by the Assessee against the separate orders even dated 19/06/2025 impugned herein passed by the Commissioner of Income Tax (Appeals)-47, Mumbai (in short, ‘Ld. Commissioner’) u/sec. 250 of the Income Tax Act, 1961 (in short, ‘Act’) for the A.Ys. 2020-21 & 2022-23 respectively. Printed from counselvise.com ITA No.5088 & 5089/MUM/2025 (Manan Trading Company P. Ltd.) 2 2. Since, identical facts and issues are involved in both the appeals and therefore the same were heard together and being disposed of by way of this composite order, taking into consideration the facts of ITA No. 5088/MUM/2025, as a lead case. 3. Admittedly, the Assessee despite of affording various opportunities by the Ld. Commissioner, except submitting partial response to the notice dated 19/12/2024, eventually made no effective compliance and/or submitted no substantive submission and documents. Therefore, in the constrained circumstances, the Ld. Commissioner affirmed the decision of the Assessing Officer (AO) in making the addition of Rs. 8,00,595/- being 1% of the total business turnover/sales of Rs.8,00,595/- considering as accommodation entry, vide assessment order, dated 24/03/2022 u/sec. 143(3) of the Act and therefore, the Assessee is not entitled for any leniency. 4. However coming to another aspect of the case it is observed the Ld. Commissioner in absence of relevant submissions and/or documents, was constrained to affirm the decision of the AO and therefore could not decide the issue involved in its right perspective and proper manner, thus, considering the peculiar facts and circumstances for just and proper decision of the case and substantial justice, this Court is inclined to remand the instant case to the file of Ld. Commissioner for decision afresh, however, subject to deposit of Rs. 5,500/- (Rupees Five Thousand Five Hundred Only) with the Revenue Department under the ‘other head’ within 15 days from the date of receipt of this order. This Court clarify that in case of subsequent default, the Assessee shall not be entitled for any leniency. Thus, the case is, accordingly, remanded to the Ld. Commissioner for decision afresh, by allowing appeal of the Assessee for statistical purposes. Printed from counselvise.com ITA No.5088 & 5089/MUM/2025 (Manan Trading Company P. Ltd.) 3 5. In the light of the above decision in ITA No. 5088/MUM/2025, the appeal i.e. ITA No. 5089/MUM/ 2025 having involved identical facts and issues, is also stands allowed for statistical purposes in the same terms. 6. In the result, both the Assessee’s appeals are allowed for statistical purposes, in the same terms. Order pronounced in the open court on 06.10.2025. Sd/- (NARENDER KUMAR CHOUDHRY) JUDICIAL MEMBER vr/- Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai. The DR, ITAT, Mumbai ‘B’ Bench //True Copy// By Order Dy./Assistant Registrar ITAT, Mumbai. Printed from counselvise.com "