MANISH DAMJI GALA,MUMBAI V. NFAC, DELHI

ITA 6453/MUM/2024

AI Insights

The case involves an appeal by Shri Manish Damji Gala against the order of the National Faceless Appeal Centre (NFAC), Delhi, which was passed under section 250 of the Income-tax Act, 1961. The appeal was initially filed due to an addition of Rs.60,25,000 under Section 69A of the Act, related to a cash loan received by the assessee. Both the assessment and the appellate orders were passed ex parte due to the non-appearance of the assessee. The Tribunal, after considering the circumstances and the principles of natural justice, decided to remit the case back to the Ld. CIT(A) for a fresh adjudication on merits, provided the assessee pays a specified cost.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474455 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.R. MAKWANA
• Assessee Lawyers: LETTER FILED
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 147; 144; 250; 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “D”, MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER ITA 6453/Mum/2024 (Assessment Year 2017-18) Shir Manish Damji Gala C/13, Ishwar Niwas, Sikka Nagar, V.P. Road, Mumbai-400 004 PAN :AEJPF0173K vs NFAC, Delhi APPELLANT RESPONDENT Assessee by : Letter filed Respondent by : Shri R.R. Makwana, Addl. CIT Date of hearing : 25/03/2025 Date of pronouncement : 28/03/2025 O R D E R Per Anikesh Banerjee (JM): Instant appeal by the assesseewas filed against the order of the National Faceless Appeal Centre, Delhi (for brevity the “Ld. AO”), passed under section 250 of the Income-tax Act, 1961(in short, ‘the Act’), date of order 16-10-2024 for A.Y. 2017-18.The impugned order is emanated from the order of the Assessment Unit, Income-tax Department (for brevity the “Ld. AO”), order passed under section 147r.w.s 144 read with section 144B of the Act, date of order 28/05/2023. 2 ITYA No.6453/Mum/2024 Shri Manish Damji Gala 2. When the appeal was called for hearing none was present on behalf of the assessee. We find that a number of opportunities were provided to the assessee for hearing of the appeal. However, considering the merit of the case, we proceed to dispose of the appeal exparte qua for the assessee, after hearing the Ld.DR. 3. The assessment was concluded with an addition of Rs.60,25,000/- under Section 69A of the Act, pertaining to the cash loan received by the assessee. The assessment was framed under Sections 147 and 144, read with Section 144B of the Act. Aggrieved by the said assessment, the assessee preferred an appeal before the Ld. CIT(A), albeit with a delay in filing. The Ld. CIT(A), upon due consideration, condoned the delay and issued a notice of hearing to the assessee. However, as the assessee failed to respond to the notice, the Ld. CIT(A) proceeded to adjudicate the appeal ex parte and rendered a decision on the merits of the case. 4. We observe that the assessee has a substantial outstanding demand, and both the assessment and appellate orders have been passed ex parte. In the interest of natural justice, we believe that the assessee should be granted one more opportunity to properly present its case before the Ld. CIT(A). However, as the assessee has failed to provide a satisfactory explanation for its non-compliance with the notices issued by the Ld. CIT(A), we are of the view that a cost should be imposed to emphasize the importance of adhering to income tax proceedings. Accordingly, we impose a cost of Rs.10,000/- (Rupees Ten Thousand only) upon the assessee, which shall be paid to the credit of the Income Tax Department within two months from the date of receipt of this order. 3 ITYA No.6453/Mum/2024 Shri Manish Damji Gala Subject to the payment of the aforesaid cost, which shall be duly verified by the Ld. CIT(A), all issues are remitted to the file of the Ld. CIT(A) for adjudication on merits. We do not express any opinion on the merits of the case to ensure the appellate procedure remains uninfluenced before the Ld. CIT(A). It is imperative that the assessee is afforded a reasonable opportunity of being heard. Furthermore, the assessee is expected to exercise due diligence in the appellate proceedings to facilitate the expeditious disposal of the appeal. 5. In the result, the appeal of the assessee bearing ITA 6453/Mum/2024 is allowed for statistical purpose. Order pronounced in the open court on 28th day of March 2025. Sd/- sd/- (B.R. BASKARAN) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,दिन ांक/Dated: 28/03/2025 Pavanan Copy of the Order forwarded to: 1. अपील र्थी/The Appellant , 2. प्रदिव िी/ The Respondent. 3. आयकरआयुक्त CIT 4. दवभ गीयप्रदिदनदि, आय.अपी.अदि., मुबांई/DR, ITAT, Mumbai 5. ग र्डफ इल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Mumbai "