PUBLICIS COMMUNICATION PRIVATE LIMITED AS SUCCESSOR TO CAPITAL ADVERTISING PRIVATE LIMITED,MUMBAI V. DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE 8(2)(1), MUMBAI

ITA 2482/MUM/2025

AI Insights

The case involves Publicis Communications Private Limited, which is the successor to Capital Advertising Pvt. Ltd., appealing against an order from the National Faceless Appeal Centre/Commissioner of Income Tax (Appeals). The appeal was against additions made by the Assessing Officer regarding disallowances of prior period expenses. The initial appeal was dismissed due to non-compliance and non-submission of documents by the Assessee. The Tribunal considered the merger and the Assessee's status as a successor company and decided to remand the case for a fresh hearing, allowing the Assessee to present its case.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 835510 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 09-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: VIRABHADRA MAHAJAN
• Assessee Lawyers: KETAN VED
• Keywords: Opportunity of being heard

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “C”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER And SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No.2482/M/2025 Assessment Year: 2011-12 Publicis Communications Private Limited, [as a successor to erstwhile Capital Advertising Private Limited], 15th Floor, Urmi Estate, Tower A, 95, Ganpatrao Kadam Marg, Lower Parel (West), Mumbai – 400013. PAN-AABCA5234G Vs. The Deputy Commissioner of Income Tax, Circle-3(1), [now the Deputy Commissioner of Income-tax, Circle 8(2)(1), Mumbai on account of merger], Room No. 479, 4th Floor, Aayakar Bhavan, Maharshi Karve Marg, Marine Lines, Mumbai-400020. (Appellant) (Respondent) Present for: Assessee by : Shri Ketan Ved, CA Revenue by : Shri Virabhadra Mahajan, (SR. D.R.) Date of Hearing : 19.01.2026 Date of Pronouncement : 12.02.2026 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 25.09.2015, impugned herein, passed by the National Faceless Appeal Centre (NFAC)/Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2011-12. 2. In the instant case, the AO vide assessment order dated 28.03.2014 has made the additions of Rs.18,00,000/- and Printed from counselvise.com ITA No.2482/M/2025 Publicis Communications Private Limited, [as a successor to erstwhile Capital Advertising Private Limited] 2 Rs.5,00,000/- on account of disallowance qua payment made to M/s. Publicis Communications Pvt. Ltd. (PCPL) and M/s. Korn/Ferry International Pvt. Ltd. for the prior period expense respectively. 3. The Assessee being aggrieved challenged the said additions by filing first appeal before the Ld. Commissioner, however, despite affording three opportunities, made no compliance and/or filed no submissions or documents and therefore in the constrained circumstances, the Ld. Commissioner dismissed the appeal of the Assessee affirming the aforesaid additions under consideration. 4. Thus, the Assessee being aggrieved has preferred instant appeal. 5. Heard the parties and perused the material available on record. The Assessee has claimed that it is a successor of M/s. Capital Advertising Pvt. Ltd. which was merged with the present Assessee, i.e. Publicis Communications Pvt. Ltd. (PCPL) with effect from 1st April, 2011 and therefore, that could be a reason for non- appearance before the Ld. Commissioner, however, the Assessee willing to continue the proceedings in its name and therefore, one opportunity may be granted to, by remanding the case to the file of the Ld. Commissioner. The Ld. D.R. did not refute the aforesaid claim. Considering the peculiar facts and circumstances in totality and specific to the effect that Capital Advertisements Pvt. Ltd. (CAPL), has merged with the Assessee herein, with effect from 01.10.2011 and thus, for just and proper decision of the case, the Assessee being as a successor of such company is required to be heard by the Ld. Commissioner and therefore, the case is accordingly remanded to the file of the Ld. Commissioner for decision afresh, suffice it to say, by affording an reasonable opportunity of being heard to the Assessee. Printed from counselvise.com ITA No.2482/M/2025 Publicis Communications Private Limited, [as a successor to erstwhile Capital Advertising Private Limited] 3 6. We clarify that the Assessee would be at liberty to raise all ground including legal in nature, emanating from the impugned order/assessment order. 7. As the Assessment Year pertains to AY 2011-12, and therefore, the Assessee’s Counsel has requested and not refuted by the Ld. D.R., thus, the Ld. Commissioner is directed to complete the appellate proceedings within 6 months from the date of receipt of this order. 8. In the result, Assessee’s appeal is allowed for statistical purposes. Order pronounced in the open court on 12.02.2026. Sd/- Sd/- (PRABHASH SHANKAR) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER Tarun Kushwaha Sr. Private Secretary. Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. Printed from counselvise.com "