MR NILESH V. MEHTA,MUMBAI V. ACIT, CPC, , MUMBAI

MA 275/MUM/2024

AI Insights

The case involves Shri. Nilesh V. Mehta, who is engaged in the business of manufacturing and supplying pharmaceuticals, and had filed a return of income for the assessment year 2020-21. The Assessing Officer made a disallowance related to the employee's contribution to the provident fund, which was deposited after the due date but before the filing of the return. This disallowance was upheld by the CIT(A) and initially by the Tribunal in an ex parte order. The assessee filed a miscellaneous application under section 254(2) of the Income Tax Act, 1961, due to typographical errors in the Tax Audit Report, which were rectified but not considered in the earlier proceedings. The Tribunal, acknowledging the oversight and the principles of natural justice, decided to recall the ex parte order and provide a new hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25242 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Other Referred Cases: Checkmate Services Pvt. Ltd. vs. CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HIMANSHU JOSHI
• Keywords: Principle of natural justice
• Section: 143(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, MUMBAI BEFORE SHRI. AMARJIT SINGH, AM AND MS. KAVITHA RAJAGOPAL, JM MA No. 275/Mum/2024 (Arising out of ITA No. 1674/Mum/2023) (Assessment Year: 2020-21) Shri. Nilesh V. Mehta 505/506, Fly Edge, S. V. Road, Borivali West, Mumbai – 400092. Vs. ACIT, Circle 42(1)(1) Room No. 732, 7th Floor, Kautilya Bhavan, Mumbai – 400051. PAN/GIR No. ADAPM 1284 H (Applicant) : (Respondent) Applicant by : Shri. Ajay R. Singh/ Akshay Pawar Respondent by : Shri. Himanshu Joshi (Sr. DR) Date of Hearing : 24.01.2025 Date of Pronouncement : 06.02.2025 O R D E R Per Kavitha Rajagopal, J M: The present Miscellaneous Application has been filed by the assessee/applicant u/s. 254(2) of the Income Tax Act, 1961 (‘the Act' for short), for recall of the ex parte order of the Tribunal in ITA No. 1674/Mum/2023, dated 28.08.2023. 2. Briefly stated the assessee is engaged in the business of manufacturing and supplying of pharmaceuticals and medicinal chemicals and had filed his return of income dated 29.12.2020 declaring total income at Rs.5,10,19,980/- and the same was processed u/s. 143(1) of the Act. The learned Assessing Officer ('ld. A.O.' for short)/CPC vide intimation dated 29.11.2021 passed u/s. 143(1) of the Act determined the total income at Rs.5,18,80,330/- by making a disallowance of Rs.8,40,462/- being the employees’ 2 MA No. 275/Mum/2024 (A.Y. 2020-21) Shri. Nilesh V. Mehta contribution to provident fund deposited after the due date prescribed under the relevant act but before filing of the return of income. 3. The assessee was in appeal before the ld. CIT(A), challenging the impugned disallowance made by the AO/CPC and the ld. CIT(A) upheld the impugned addition/disallowance by relying on the decision of the Hon'ble Apex Court in the case of Checkmate Services Pvt. Ltd. vs. CIT (in Civil Appeal No. 2833 of 2016 and others vide order dated 12.10.2022). 4. The assessee was in appeal before the Tribunal and the Tribunal vide an ex parte order dated 28.08.2023 had dismissed the appeal filed by the assessee by relying on the decision of the Hon’ble Apex Court in the case of Checkmate Services Pvt. Ltd. (supra). The assessee/applicant has filed the present Miscellaneous application for recalling the said order on the ground that there were typographical errors in the Tax Audit Report which was rectified subsequently by the Annexure to the audit report and the same was also submitted before NFAC which was not considered by the ld. CIT(A). 5. We have heard the rival submissions and perused the material available on record. The ld. AR for the assessee/applicant contended that there was inadvertent error in the tax audit report with regard to the payment of the employee’s contribution to PF and the same was not adjudicated by the lower authorities. The ld. AR further contended that assessee was unable to appear before the Tribunal on the date of hearing due to which the assessee’s appeal was dismissed ex parte without considering the merits of the case. The ld. AR prayed that the assessee may be given another opportunity to present his case before the Tribunal and the ex parte order be recalled for the same. 3 MA No. 275/Mum/2024 (A.Y. 2020-21) Shri. Nilesh V. Mehta 6. The learned Departmental Representative (‘ld. DR’ for short) vehemently opposed for recalling the said order and relied on the order of the lower authorities and the Tribunal’s order. Upon perusal of the same, it is observed that Tribunal vide order dated 28.08.2023 had dismissed the appeal by relying on the decision of the Hon’ble Apex Court in the case of Checkmate services Pvt. Ltd. (supra). From the records, it is observed that the assessee has received the copy of the Tribunal order on 06.11.2024 and had thereafter filed the present miscellaneous application for recalling the said order on the ground that there were typographical errors in the Tax Audit Report which was not looked into. 7. On the above facts, we deem it fit to recall the order of the Tribunal dated 28.08.2023, in order to provide the assessee with one more opportunity to present his case before the Tribunal by adhering to the principles of natural justice and also in the interest of justice dispensation. 8. In the result, the miscellaneous application filed by the assessee/applicant is allowed. Order pronounced in the open court on 06.02.2025 Sd/- Sd/- (AMARJIT SINGH) (KAVITHA RAJAGOPAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated: 06.02.2025 Karishma J. Pawar (Stenographer) Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT- concerned 4. DR, ITAT, Mumbai 4 MA No. 275/Mum/2024 (A.Y. 2020-21) Shri. Nilesh V. Mehta 5. Guard File BY ORDER, (Dy./Asstt.Registrar) ITAT, Mumbai "