PKH VENTURES LIMITED,MUMBAI, MAHARASHTRA V. THE DEPUTY COMMISSIONER INCOME TAX, AAYKAR BHAVAN, CHURCHGATE

ITA 3322/MUM/2025

AI Insights

The case involves PKH Ventures Ltd., which appealed against the order of the Learned Commissioner of Income-tax (Appeals) confirming a penalty for concealment of income. The original assessment for AY 2012-13 was reopened based on information from the Investigation Wing, leading to a higher declared income and subsequent penalty proceedings. The assessee contended that they did not receive the notices for the penalty proceedings as they were sent to an outdated email address. The tribunal found merit in the assessee's request for a fresh hearing and remanded the case back to the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706183 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2012-2013
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIRABHADRA S. MAHAJAN
• Assessee Lawyers: ANIRUDH DAVE INSTRUCTED BY PIYUSH AGARWAL
• Keywords: Principle of natural justice; Share purchase agreement
• Section: 148; 143(3); 271(1)(c)

Judgement Text

" |आयकर अपीलीय न्यायाधिकरण न्यायपीठ, म ुंबई| IN THE INCOME-TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER आयकर अपील सुं./ITA No. 3322/MUM/2025 (नििाारण वर्ा / Assessment Year :2012-13) PKH Ventures Ltd. 142, Garuda House, Malad East S.O, Mumbai, Maharashtra-400097 v/s. बिाम DCIT Aayakar Bhavan, M. K. Road, New Marine Lines, Churchgate, Mumbai- 400020 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AACCP4674L Appellant/अपीलार्थी .. Respondent/प्रनिवादी निर्ााररती की ओर से /Assessee by: Shri Anirudh Dave (Instructed by Shri Piyush Agarwal) राजस्व की ओर से /Revenue by: Mr. Virabhadra S. Mahajan, Sr. DR. स िवाई की िारीख / Date of Hearing 25.06.2025 घोर्णा की िारीख/Date of Pronouncement 30.06.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeals), Mumbai-/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 11.03.2025 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2012-13. P a g e | 2 ITA No. 3322/Mum/2025 A.Y. 2012-13 PKH Ventures Ltd. 2. The assessee has raised the following grounds of appeal: “1. That on the facts and circumstances of the case, the impugned order u/s 143(3) r.w.s 147 and the penalty order passed by the A.O is grossly erroneous, unjustified and bad in law and violates F the principal of natural justice and is therefore liable to be quashed. 2. The Notices issued under section 271(1)(c) on 20/12/2019, 23/02/2021, 17/03/2021 and 19/08/2021 and communicated on the email id [e-mail]. which belongs to family member who is no more the director of the company and the notices were never got acknowledged by the company as no handover of that particular mail took place. 3. That on facts and in the circumstance of the case, the Ld. A.O. grossly erred in making addition for the money received for the issue of shares of the company even after submitting the share certificates, annual returns and all the other documents required to prove the genuineness. 4. That the appellant craves leave, to add, to amend, to modify, to rescind, supplement or alter any other grounds stated here-in-above, either before or at the time of hearing of this appeal.” 3. Brief facts of the case are that the assessee had filed its return declaring income of Rs. 99,26,090/- for AY 2012-13 on 29.09.2012. Based on the information received from the Investigation Wing, the case was reopened by issue of notice u/s 148 of the Act and assessment was completed at an income of Rs. 1,95,95,300/- vide order u/s 143(3) r.w.s. 147 dated 14.12.2019. Penalty proceedings u/s 271(1)(c) of the Act were also initiated for concealment of income. Subsequently, vide order dated 27.03.2022, a penalty of Rs. 30,82,755/- was levied for concealment of particulars of income. 4. Aggrieved with the penalty order, the assessee preferred an appeal before the Ld. CIT(A). Despite several notices issued by Ld. CIT(A), no compliance was made by the assessee, and accordingly, vide order dated 11.03.2025, the penalty u/s 271(1)(c) was confirmed by him. P a g e | 3 ITA No. 3322/Mum/2025 A.Y. 2012-13 PKH Ventures Ltd. Aggrieved with the order of Ld. CIT(A), the assessee filed an appeal before the Tribunal. 5. Before us, Ld. AR has submitted that no compliance could be made during the appellate proceedings before the Ld. CIT(A) as the notices were sent on a different email i.e. [e-mail]. However, this email belongs to the person who is no longer with the company, and accordingly, the company was unaware of the notices issued during the appellate proceedings. Ld. AR accordingly requested that the matter may be remanded back to Ld. CIT(A) for a fresh hearing and has also mentioned the correct email address of the company i.e. [e-mail]. Ld. DR has not objected to the above proposition. 6. After hearing the rival submissions and in the interest of justice, we deem it appropriate to remand back the matter to Ld. CIT(A) for a fresh adjudication after giving due opportunity to the assessee on the email address provided by the Ld. AR. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 30.06.2025. Sd/- Sd/- BEENA PILLAI RENU JAUHRI (न्यानयक सदस्य/JUDICIAL MEMBER) (लेखाकार सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai P a g e | 4 ITA No. 3322/Mum/2025 A.Y. 2012-13 PKH Ventures Ltd. दिन ुंक /Date 30.06.2025 अननक ेत स ुंह र जपूत/ स्टेनो आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "