SAVANNAH LIFESTYLE PRIVATE LIMITED,BANDRA WEST, MUMBAI , MAHARASHTRA V. NATIONAL FACELESS APPELLATE CENTRE, NEW DELHI

ITA 2672/MUM/2025

AI Insights

The case involves Savannah Lifestyle Private Limited, which appealed against the orders of the National Faceless Appeal Centre (NFAC), Delhi, concerning the Assessment Years 2019-20 and 2022-23. The appeals were against the additions made under the head 'Income from business and profession' amounting to Rs.79,37,950, following the rejection of the assessee's books under section 145(3) of the Income-tax Act, 1961. The Tribunal noted the absence of the assessee during the hearings and the lack of substantial evidence provided to rebut the findings of the AO. Consequently, the Tribunal decided to restore the matter to the AO for a fresh assessment, ensuring the principles of natural justice were upheld.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775910 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2019-2020
• Appeal Filed On: 17-04-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE; KAVITHA KAUSHIK
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 147; 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “F”, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No.2672/Mum/2025 - A.Y. 2019-20 I.T.A. No.2673/Mum/2025 - A.Y. 2022-23 Savannah Lifestyle Private Limited, 3rd Floor, Chopsy Terrce, Almount Road, 164, Hill Road, Bandra West, Mumbai-400 050 PAN: AAJCS3735N vs National Faceless Appeal Centre / ITO Ward 5(3)(1), Mumbai Aayakar Bhavan, M.K. Road, Mumbi- 400 020 APPELLANT RESPONDENT Assessee by : None Respondent by : Ms. Kavitha Kaushik (SR DR) Date of hearing : 04/09/2025 Date of pronouncement : 09/09/2025 O R D E R Per Anikesh Banerjee (JM): Instant appeals were preferred by the assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi [for brevity, the “Ld. CIT(A)”] order passed u/s 250 of the Income-tax Act, 1961 (in shot, ‘the Act) for the Assessment Years 2019-20 and 2022-23. Both the appeal orders were passed on dated 18/02/2025. The impugned orders emanated from the orders of the Assessment Unit, Income-tax Department, (in short, Ld.AO) passed under section 147 r.w.s. 144 Printed from counselvise.com 2 ITA No.2672 & 2673 /Mum /2025 Savannah Lifestyle Pvt Ltd ) r.w.s. 144B of the Act, date of order 20/03/2024 for A.Y. 2019-20; and for A.Y. 2022- 23 order passed u/s 143(3) r.w.s. 144B of the Act, date of order 22/03/2024. 2. When the appeals were called for hearing none was present on behalf of the assesse and no adjournment petition was also filed. However, considering the merit of the case, we proceed to dispose of the appeals exparte qua for assessee, after hearing the Ld.DR and on perusal of material available on record. 3. Both the appeals have same nature of facts and common issue. Therefore, both the appeals were heard together and are disposed of by this common order. ITA No.2673/Mum/2025 is taken as lead case. 4. We heard the Ld.DR and considered the materials on record. The assessment was completed with an addition on account of ‘Income from business and profession’ amount to Rs.79,37,950/-. The assessee company engaged in business of providing service and running business of renting premises for restaurant, swimming pool and yoga classes from which it earns rental income from restaurants and membership fee from swimming pool and yoga classes. The assessee filed the return u/s 139(1) of the Act and the assessee’s case was taken for complete scrutiny under CASS. After the assessment, the addition was made under the head, ‘Income from business and profession’ and assessee’s books were rejected u/s 145(3) of the Act. The Ld. AO determined the profit @8% on turnover found declared in ITR by the assessee which comes to Rs.79,37,950/-. The profit was added back in total income under the head income from business & profession. The aggrieved assessee filed an appeal before the Ld. CIT(A). The date of hearing Printed from counselvise.com 3 ITA No.2672 & 2673 /Mum /2025 Savannah Lifestyle Pvt Ltd ) was fixed for hearing in number of times. But the assessee failed to submit the evidence in support of his ground. The appellate order is passed exparte and the addition was upheld. Being aggrieved the assessee filed an appeal before us. 5. The Ld. DR supported and relied solely upon the orders of the revenue authorities. In our considered view, it is seen that during the appellate proceedings the assessee did not comply with the notices issued by the Ld. CIT(A) and failed to furnish any substantial evidence to rebut the findings of the Ld. AO. At the same time, the denial of reasonable opportunity to the assessee amounts to a violation of the principles of natural justice. We are, therefore, of the opinion that the assessee deserves another opportunity to place on record the requisite evidence before the Ld. AO in support of his claim. Accordingly, we restore the matter to the file of the Ld. AO with a direction to grant the assessee due opportunity of hearing and thereafter frame a de novo assessment in accordance with law. We make it clear that we have not expressed any opinion on the merits of the case so as not to prejudice the proceedings before the Ld AO. Needless to add, the assessee shall be afforded reasonable opportunity of being heard. At the same time, the assessee is expected to remain diligent and co-operative in the set-aside proceedings to enable early disposal of the assessment. ITA 2672/Mum/2025 6. The facts and circumstances being identical, the decision arrived above shall apply mutatis mutandis to this appeal also. Printed from counselvise.com 4 ITA No.2672 & 2673 /Mum /2025 Savannah Lifestyle Pvt Ltd ) 7. In the result, assessee’s appeals bearing ITA Nos 2672 & 2673/Mum/2025 are allowed for statistical purpose. Order pronounced in the open court on 09th day of September, 2025. Sd/- sd/- (NARENDRA KUMAR BILLAIYA) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, िदनांक/Dated: 09/09/2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथ /The Appellant , 2. ितवादी/ The Respondent. 3. आयकर आयु\u0014 CIT 4. िवभागीय ितिनिध, आय.अपी.अिध., मुंबई /DR, ITAT, Mumbai 5. गाड फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Mumbai Printed from counselvise.com "