REENA ASHISH AJMERA ,MUMBAI V. DCIT CENTRAL CIRCLE 2(3), MUMBAI

ITA 4040/MUM/2025

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The case involves Reena Ashish Ajmera, the appellant, contesting an ex-parte assessment order passed under sections 143(3) read with section 144B of the Income-tax Act, 1961, by the Deputy Commissioner of Income Tax, Central Circle \\u2013 2(3). The appellant challenged the order on grounds of jurisdictional errors, lack of natural justice, and incorrect disallowances of salary and interest expenses. The Income Tax Appellate Tribunal found that the Commissioner of Income-tax (Appeals) had dismissed the appeal without proper adjudication on the merits, leading to a decision to remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778180 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2022-2023
• Appeal Filed On: 06-06-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ANNAVARAN KASURI
• Assessee Lawyers: VIMAL PUNMIYA; DISALLOWING
• Keywords: Set aside; Opportunity of being heard; Additional evidence; Principle of natural justice; Non compliance
• Section: 144; 143(3)

Judgement Text

"IN THE INCOME-TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITANo.4040/MUM/2025 (A.Y. 2022-23) Reena Ashish Ajmera 4th Floor, Ajmera House, L.T. Marg, Pathakwadi, Mumbai – 400 002, Maharashtra v/s. बनाम Deputy Commissioner of Income Tax, Central Circle – 2(3), 803, 8th Floor, Pratishtha Bhavan, Old CGO Annexe, Maharishi Karve Road, Mumbai – 400020, Maharashtra स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAGPA6019D Appellant/अपीलार्थी .. Respondent/प्रतिवादी Appellant by : Shri Vimal Punmiya,AR Respondent by : Shri Annavaran Kasuri, Sr. AR Date of Hearing 21.08.2025 Date of Pronouncement 06.10.2025 आदेश / O R D E R PER PRABHASH SHANKAR [A.M.] :- The present appeal is preferred by the assessee against the order passed by the Learned Commissioner of Income-tax, Appeal, CIT(A) 48, Mumbai [hereinafter referred to as “CIT(A)”] pertaining to assessment order passed u/s. 143(3) r.w.s. 144B of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 20.03.2024 for the Assessment Year [A.Y.] 2022-23. Printed from counselvise.com P a g e | 2 ITA No. 4040/Mum/2025 A.Y. 2022-23 Reena Ashish Ajmera 2. The grounds of appeal are as under: 1. THE ORDER BAD, ILLEGAL AND WITHOUT JURISDICTION 1.1 In the facts and the circumstances of the case, and in law, the appellate order framed by the Commissioner of Income tax (Appeals)-48, Mumbai [\"Ld. CIT (A)\"] be held as bad and illegal, as the same is framed in breach of the statutory provisions and the scheme and as otherwise is not is not in accordance with the law. 1.2 Without prejudice to the generality of the above, the appellate order so passed is bad, illegal and void as the same is utterly cryptic and perverse. 2. NATURAL JUSTICE 2.1 The Ld. CIT (A) erred in confirming the action of the AO by passing an ex-parte order contrary to the provisions of the Income Tax Act, 1961 [\"the Act\"]. 2.2 While passing the said order the CIT(A) failed to appreciate that: (i) The said order is passed without granting a fair, proper and reasonable opportunity of being heard to the Appellant; and; (ii) The same is passed without any application of mind and in breach of the principles of natural justice. 2.3 It is submitted that, in the facts and the circumstances of the case, and in law, the appellate order so framed be quashed and set aside. WITHOUT FURTHER PREJUDICE TO THE ABOVE 3.1 The Ld. CIT (A) erred in confirming the disallowance of made by the A.O. of salary expense Rs.7,22,025/- and Interest expense of Rs.7,68,379/-. 3.2 While doing so, the Ld. CIT (A) erred in: (i) Basing his action on wrong/ erroneous facts. (ii)Basing his action only on surmises, suspicion and conjecture; (iii)Taking into account irrelevant and extraneous considerations; 3.3 It is submitted that in the facts and the circumstances of the case, and in law, no such addition was called for. 3.4 Without prejudice to the above, assuming but not admitting that some addition was called for, it is submitted that the computation of the addition made by the A.O. is arbitrary, excessive and not in accordance with the law. Printed from counselvise.com P a g e | 3 ITA No. 4040/Mum/2025 A.Y. 2022-23 Reena Ashish Ajmera 2. In this case, assessment order was passed ex parte u/s 144 of the Act on account of non compliance by the assessee by disallowing certain expenses and adding to the returned income which were agitated before the first appellate authority. In the subsequent appeal, as noted by the ld.CIT(A), a number of notices/ communications through ITBA portal were sent to the appellant, viz. communications dated 21.12.2024, 24.01.2025, 10.02.2025, 21.02.2025 and 13.03.2025. But the assessee did not attend the appeal proceedings without citing any reasons. Accordingly, the appeal was dismissed in limine and in ex-parte manner on the basis documents/details available on record. 3. We find that the appellate order has been passed in ex parte manner on account of non compliance by the assessee as none of the issues involved could be considered as the grounds of appeal have been not been adjudicated. Consequently, the ld.CIT(A) has failed to evaluate the points of consideration so as to give his own decision on objective analysis of all relevant facts and circumstances of the case in utter disregard to the principles of natural justice and fair play. He has not decided the appeal on merits which is contrary to the mandate of section 250(6) of the Act. Printed from counselvise.com P a g e | 4 ITA No. 4040/Mum/2025 A.Y. 2022-23 Reena Ashish Ajmera 3.1 During the course of hearing, the ld.AR requested for remanding back the entire issue to the lower authorities with the promise that necessary compliance would be made by the assessee. The ld.DR however, objected to such proposition on account of non- compliant attitude of the assessee. 4. Considering the entirety of the facts and the circumstances of the case and in the interest of principles of natural justice and fair play, we consider it appropriate to send the appeal back to the file of the ld.CIT(A) in the light of above discussion granting final opportunity to the assessee to advance his arguments/submissions before the ld. CIT(A) so as to provide details in connection with the merits of the case and additional evidences, if any to support his contentions. Both the sides did not object to this proposition. Accordingly, in the substantial interest of justice, we set aside the appellate order and restore the entire matter back to the ld.CIT(A) for passing the appellate order de novo after allowing adequate opportunity of hearing to the assessee. 4.1 Before parting, we may 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 Printed from counselvise.com P a g e | 5 ITA No. 4040/Mum/2025 A.Y. 2022-23 Reena Ashish Ajmera dispute, which shall be adjudicated by him independently and in accordance with law. 5. Considering the non-compliant behaviour of the assessee during the proceedings, we deem it to proper to impose a cost of Rs 2,000/-on her with a direction to deposit the same in Prime Minister’s Relief Fund within 15 days of this order and produce the acknowledgement thereof to the AO. 6. In the result, the appeal is allowed for statistical purposes. Order pronounced in the open court on 06/10/2025. Sd/- Sd/- PAWAN SINGH PRABHASH SHANKAR (न्याययक सदस्य /JUDICIAL MEMBER) (लेखाकार सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai ददनाुंक /Date 06.10.2025 Lubhna Shaikh / Steno आदेश की प्रयियलयि अग्रेयिि/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 Printed from counselvise.com P a g e | 6 ITA No. 4040/Mum/2025 A.Y. 2022-23 Reena Ashish Ajmera 5. गार्ड फाईल / Guard file. सत्यावपि प्रवि //True Copy// आदेशानुसार/ BY ORDER, उि/सहायक िंजीकार (Dy./Asstt. Registrar) आयकर अिीलीय अयिकरण/ ITAT, Bench, Mumbai. Printed from counselvise.com "