PARAKH KALPESH JHAVERI ,MUMBAI V. DCIT-CIRCLE 32(1), MUMBAI

ITA 5073/MUM/2025

AI Insights

The case involves Prakash Kalpesh Jhaveri, the appellant, who contested the order of the Learned Commissioner of Income-tax (Appeals)-52, Mumbai, which was passed under section 250 of the Income-tax Act, 1961. The original assessment was made under section 147 read with section 144B, where an addition of Rs.74,22,000 was made under section 69A read with section 115BBE, treating profits from derivative transactions as unexplained money. The CIT(A) rejected the appeal on the grounds of limitation, not considering the merits. The Tribunal did not make any observations on the merits of the case but remanded it back for a fresh examination of the delay and the substantive issues.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786291 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 18-08-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIRABHADRA MAHAJAN
• Assessee Lawyers: VIPUL JOSHI
• Keywords: Opportunity of being heard; Corroborative evidences
• Section: 147; 148; 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI BEFORESHRI OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A No.5073/Mum/2025 (Assessment Year: 2015-16) Parakh Kalpesh Jhaveri 402, Smruti, Plot No.16 Road No.4, Vileparle (West) S.O., Mumbai-400 056 PAN : AJIPJ3190M vs DCIT-Circle-32(1), Mumbai Kautilya Bhavan, Bandra Kurla Complex, Bandra (East), Mumbai- 400 051 APPELLANT RESPONDENT Assessee by : Shri Vipul Joshi Respondent by : Shri Virabhadra Mahajan, SR DR Date of hearing : 16/10/2025 Date of pronouncement : /10/2025 O R D E R Per Anikesh Banerjee, JM: The Instant appeal of the assessee was filed against the order of the Learned Commissioner of Income-tax (Appeals)-52, Mumbai [for brevity, ‘ Ld.CIT(A)’] passed under section 250 of the Income-tax Act, 1961 (in short, the Act’) for Assessment Year 2015-16, date of order 20/07/2025. The impugned order emanated from the order of the Assessment Unit, Income Tax Department (in short, ‘Ld.AO’) passed under section 147 r.w.s. 144B of the Act, date of order 27/05/2023. Printed from counselvise.com 2 ITA No.5073/Mum/2025 Prakash Kalpesh Jhaveri 2. The brief facts of the case are that the assessee filed the return of income for the impugned assessment year declaring total income at Rs.94,82,370/-. In pursuance of notice u/s 148, assessee filed the return, and the case was completed u/s 147 r.ws. 144B of the Act with an addition of Rs.74,22,000/- u/s 69A r.w.s. 115BBE by treating profits from derivative e transactions as unexplained money. The aggrieved assessee challenged both, merit of the issue and also the legal grounds related to jurisdiction u/s 148 of the Act before the Ld. CIT(A). The Ld.CIT(A) passed an exparte order without considering the merit of assessee’s case. The Ld.CIT(A) in the order mentioned that the assessee filed the appeal with a delay of 144 days, so for contravening provisions of section 249(2) of the Act, the Ld.CIT(A) rejected the appeal on the ground of limitation without considering the merit of the case. Being aggrieved, assessee filed an appeal before us. 3. The Ld. AR submitted that there existed reasonable grounds for the delay in filing the appeal before the Ld. CIT(A). The Ld. AR further presented an affidavit before the Bench explaining the reasons for the delay and seeking condonation of the same. Considering the facts and circumstances of the case, the Bench directed the Ld. AR to file the affidavit along with supporting evidence before the Ld. CIT(A) in respect of the 144-day delay in filing the appeal. 4. The Ld. DR accepted the proposal made by the Bench during the course of hearing and raised no objection in this regard. 5. In our considered view, the matter is remanded to the file of the Ld. CIT(A). The assessee is directed to submit the affidavit along with all relevant supporting documents before the Ld. CIT(A) for fresh adjudication. The Ld. CIT(A) is instructed to accept these documents and afford the assessee a reasonable Printed from counselvise.com 3 ITA No.5073/Mum/2025 Prakash Kalpesh Jhaveri opportunity of being heard in the set-aside proceedings. The Ld. CIT(A) shall also examine the reasons for the delay in filing the appeal and pass a reasoned (speaking) order after due consideration of the evidence furnished by the assessee. The assessee is, in turn, directed to act diligently and extend full cooperation during the remand proceedings. We make no observations on the merits of the case, so as not to prejudice the outcome of the de novo appellate proceedings. Accordingly, the appeal stands restored to the file of the Ld. CIT(A) with the directions stated above. 6. In the result, appeal of the assessee bearing ITA No.5073/Mum/2025 is allowed for statistical purpose. Order pronounced in the open court on _____ /10/ 2025 under Rule 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. (OM PRAKASH KANT) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,िदनांक/Dated: /10/2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथ /The Appellant , 2. ितवादी/ The Respondent. 3. आयकरआयु\u0014 CIT 4. िवभागीय ितिनिध, आय.अपी.अिध., मुंबई/DR, ITAT, JODHPUR 5. गाड\u0019फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, MUMBAI Printed from counselvise.com 4 ITA No.5073/Mum/2025 Prakash Kalpesh Jhaveri Details Date Initials Designation 1 Draft dictated on PC on 17.10.2025 Sr.PS/PS 2 Draft Placed before author 22.10.2025 Sr.PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member JM/AM 5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS/PS 7. File sent to the Bench Clerk Sr.PS/PS 8 Date on which the file goes to the Head clerk 9 Date of Dispatch of order Printed from counselvise.com "