NAYAN BUILDERS AND DEVELOPERS PRIVATE LIMITED,MUMBAI V. ITO WD 7(2)(3), MUMBAI

ITA 2322/MUM/2025

AI Insights

The case involves two appeals by Nayan Builders and Developers Pvt Ltd. against orders passed by the National Faceless Appeal Centre, Delhi, for the assessment years 2003-04 and 2010-11. The primary contention was the alleged lack of proper and sufficient opportunity of hearing provided by the CIT(A), which the assessee claimed was a breach of the principles of natural justice. The Revenue argued that the assessee had not cooperated nor furnished the required documents. The Tribunal, considering the circumstances, decided to remand the case back to the CIT(A) for a fresh hearing, emphasizing the need for adherence to the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 773438 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2003-2004
• Appeal Filed On: 01-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJIV SHANKAR KADAM
• Assessee Lawyers: MANDAR VAIDYA AW
• Keywords: Reasonable cause; Principle of natural justice

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH MUMBAI BEFORE HON’BLE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER ITA Nos. 2322 & 2310/Mum/2025 (A.Ys: 2003-04 & 2010-11) Nayan Builders and Developers Pvt Ltd., 36, Fancy chamber, 94, Surat St, Mumbai – 400009 Vs. ITO – 7(2)(3) Aayakar Bhavan Mumbai PAN/GIR No. AAACN1198H (Applicant) (Respondent) Assessee by Shri Mandar Vaidya a/w Shri Kalpesh Tarunkar Revenue by Shri Rajiv Shankar Kadam, Sr. DR Date of Hearing 03.09.2025 Date of Pronouncement 22.09.2025 आदेश / ORDER PER SANDEEP GOSAIN, JM: The present two appeals have been filed by the assessee challenging the impugned order dt. 25.02.2025 & 11.03.2025 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre, Delhi (NFAC) for the assessment years 2003-04 & 2010-11. 2. Since all the issues involved in these two appeals are common and identical, therefore, they have been clubbed, heard together and consolidated order is being passed for the sake of convenience and brevity. I shall take ITA No. Printed from counselvise.com 2 ITA No. 2322 & 2310/Mum/2025 Nayan Builders & Developers Pvt Ltd., Mumbai 2322/Mum/2025, A.Y 2003-04 as lead case and facts narrated therein. ITA No. 2322/Mum/2025, A.Y 2003-04 3. From the records, I noticed that assessee was ex-parte before Ld. CIT(A) and in this regard Ld. AR submitted that the assessee was not provided proper and sufficient opportunity of hearing by Ld. CIT(A). It was further submitted that the impugned order is in breach of principles of natural justice and assessee had complied all the notices received by Ld. CIT(A). It was submitted that supporting documents were duly submitted before revenue authorities and assessee had perused the appeal diligently but because of miss communication between the Ld. AR and the assessee, the appeal filed by the assessee could not be effectively contested before the first appellate authority. 4. On the contrary the Ld. DR submitted that Ld. CIT(A) was right in dismissing the appeal as the assessee had not cooperated and has not furnished required documents to substantiate its claim. Therefore while following the principles of nature justice the appeal was rightly rejected. 5. Be that as it may, without going into the merits of the issues raised by the assessee and taking into consideration the facts narrated before us and while taking a lenient view that, I find that there was reasonable cause, because of Printed from counselvise.com 3 ITA No. 2322 & 2310/Mum/2025 Nayan Builders & Developers Pvt Ltd., Mumbai which assessee could not put effective representation before Ld. CIT(A). Hence the Bench is of the view that one more opportunity be given to the assessee to represent his case before Ld. CIT(A). Therefore considering the overall circumstances of the present case, I deem it proper to restore the matter back to the file of Ld. CIT(A) for deciding the appeal afresh by providing one more opportunity to the assessee. Since there was none-cooperation on behalf of the assessee during the proceedings before the revenue authorities therefore a nominal cost of Rs. 2,000/- is imposed upon the assessee for delaying the proceedings which shall be deposited in the Prime Minister Relief Fund and a copy of the receipt shall be placed on file before CIT(A) within 30 days from the date of receipt of this order. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of proceedings. 6. Before parting, I make it clear that our decision to restore the matter back to the file of the Ld. CIT(A) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the Ld. CIT(A) independently in accordance with law. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Printed from counselvise.com 4 ITA No. 2322 & 2310/Mum/2025 Nayan Builders & Developers Pvt Ltd., Mumbai ITA No. 2310/Mum/2025, A.Y 2010-11 8. As the facts and circumstances in these appeals are identical to ITA No 2322/Mum/2025 for the A.Y 2003-04 (except variance in figures) and the decision rendered in above paragraph would apply mutatis mutandis for this appeal also. Accordingly, the grounds of appeal of the present appeal also stands allowed for statistical purposes. 9. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 22.09.2025. Sd/- (SANDEEP GOSAIN) JUDICIAL MEMBER Mumbai, Dated 22/09/2025 KRK, Sr. PS Printed from counselvise.com 5 ITA No. 2322 & 2310/Mum/2025 Nayan Builders & Developers Pvt Ltd., Mumbai आदेश की \bितिलिप अ\u000eेिषत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. \u000eथ / The Respondent. 3. संबंिधत आयकर आयु\u0019 / The CIT(A) 4. आयकर आयु\u0019(अपील) / Concerned CIT 5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, मु\u0003बई / DR, ITAT, Mumbai 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, स\u000eािपत ित //True Copy// 1. उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु\u0003बई मु\u0003बई मु\u0003बई मु\u0003बई / ITAT, Mumbai Printed from counselvise.com "