PNK SPACE DEVELOPMENT PRIVATE LIMITED,MUMBAI V. INCOME TAX OFFICER, WARD 13(1)(4), MUMBAI

MA 298/MUM/2024

AI Insights

The case involves PNK Space Development Private Limited, which filed a Miscellaneous Application under section 254(2) of the Income Tax Act, 1961, seeking recall of an ex parte order from the Tribunal. The original order dismissed the assessee's appeal due to non-compliance. The assessee contended that the order was not served properly, and upon receiving it, filed the application within the limitation period. The Tribunal, considering the circumstances and the principles of natural justice, decided to recall the ex parte order and allow the assessee another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315627 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KIRAN UNAVEKAR
• Keywords: Reasonable cause; Unexplained cash credit; Depreciation; Period of limitation; Principle of natural justice; Search and seizure; Time period of passing order
• Section: 143(3); 69

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI. OM PRAKASH KANT, AM AND MS. KAVITHA RAJAGOPAL, JM MA No. 298/Mum/2024 (Arising out of ITA No. 3286/Mum/2023) (Assessment Year: 2012-13) PNK Space Development Private Limited Office No. 1 & 2, C-5/6, Shanti Vihar CHS Ltd. Near P. G. Vora School, Shanti Vihar, Mira Road, East, Thane – 401107. Vs. Income Tax Officer, Ward 13(1)(4) Aayakar Bhavan, Mumbai. PAN/GIR No. AAFCP7042M (Applicant) : (Respondent) Applicant by : Ms. Shivani Shah Respondent by : Shri. Kiran Unavekar (Sr. DR) Date of Hearing : 07.03.2025 Date of Pronouncement : 14.05.2025 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. 3286/Mum/2023, dated 28.02.2024. 2. It is observed that the Miscellaneous Application was filed on 31.12.2024, whereas the impugned order of the Tribunal was dated 28.02.2024. The assessee contends that the order of the Tribunal was not served upon the assessee and only on request for service of certified copy of the order, the assessee was furnished with the order copy on 17.12.2024 and thereafter, the assessee/applicant has filed this MA which was very 2 MA No. 298/Mum/2024 (A.Y. 2012-13) PNK Space Development Pvt. Ltd. much in time when the limitation period is reckoned from the date of the service of the order. In the absence of any adverse material available on record, we deem that the MA was filed within the period of limitation. 3. Briefly stated the assessee is a Private Limited Company and engaged in the business of real estate development and had filed its return of income dated 28.09.2012, declaring total loss at Rs. 1,91,689/- and the same was processed u/s. 143(1) of the Act. The assessee’s case was reopened and the learned Assessing Officer ('ld. A.O.' for short) passed the assessment order dated 29.12.2017 u/s. 143(3) r.w.s. 147 of the Act, where the total income was determined at Rs. 48,96,650/- after making additions/disallowances u/s. 69 of the Act on unexplained cash credit amounting to Rs. 44,70,180/- and depreciation u/s. 32(1)(ii) of the Act amounting to Rs. 6,18,160/-. 4. The assessee was in appeal before the ld. CIT(A), challenging the additions made by the AO and the ld. CIT(A) upheld the additions made by the ld. AO on the ground that the assessee has failed to substantiate its claim inspite of sufficient opportunity given. 5. The assessee was in appeal before the Tribunal and the Tribunal vide an ex parte order dated 28.02.2024 had dismissed the appeal filed by the assessee on the ground that the assessee has been non-compliant throughout the proceeding and thereby the Tribunal upheld the order of the lower authorities. The applicant/assessee has filed the present miscellaneous applications for recall of the impugned order of the Tribunal on the ground that the assessee/applicant had ‘sufficient cause’ for non-compliance before the Tribunal on the date of hearing. 6. We have heard the rival submissions and perused the materials available on record. It is observed that the assessee has filed an application for consolidation in the case of 3 MA No. 298/Mum/2024 (A.Y. 2012-13) PNK Space Development Pvt. Ltd. assessee company for A.Y. 2011-12 to 2014-15 which arises out of the same search and seizure proceedings. The assessee/applicant contended that the assessee was unable to appear before the Tribunal due to lapse in communication. The assessee 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 assessee stated that there was reasonable cause for non- compliance and prayed that the order of the Tribunal be recalled. 7. 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. 8. Upon perusal of the same, we deem it fit to recall the order of the Tribunal dated 28.02.2024, in order to provide the assessee with one more opportunity to present its case before the Tribunal by adhering to the principles of natural justice and also in the interest of justice dispensation. 9. In the result, the miscellaneous application filed by the assessee/applicant is allowed. Order pronounced in the open court on 14.05.2025 Sd/- Sd/- (OM PRAKASH KANT) (KAVITHA RAJAGOPAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated: 14.05.2025 Karishma J. Pawar (Stenographer) Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 4 MA No. 298/Mum/2024 (A.Y. 2012-13) PNK Space Development Pvt. Ltd. 3. CIT- concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt.Registrar) ITAT, Mumbai "