SHREE CHAMUNDA REALTY ,MUMBAI V. ITO WARD 3(1), THANE

ITA 259/MUM/2025

AI Insights

The case involves Mr. Navin Harilal Minat, a partner at Shree Chamunda Realty, who appealed against an order from the CIT (Appeals) at the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment year 2017-18. The appellant contested the rectification order passed under section 154 of the Income Tax Act, arguing that the CIT(A) did not adequately address the grounds of appeal and proceeded without sufficient hearings, particularly during a period when the appellant was engaged in tax audits and return filings. The Tribunal found merit in the appellant's arguments regarding the lack of a fair hearing and remitted the case back to the CIT(A) for a comprehensive review on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25724 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: J
• Assessment Year: 2017-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASIF KAR MALI
• Assessee Lawyers: SHIKHAR PATWARDHAN
• Keywords: Rectification of order
• Section: 154

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “J(SMC)” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI (JUDICIAL MEMBER) AND SMT. RENU JAUHRI (ACCOUNTANT MEMBER) I.T.A. No. 259/Mum/2025 Assessment Year: 2017-18 Mr. Navin Harilal Minat Partner Shree Chamunda Realty B508 & B509 The Greater Eastern Summit, Plot No.66, Sector 15, CBD Belapur, Navi Mumbai - 400614 PAN: ADCFS4616B Vs. ITO Ward 3(1), Thane Room No.3, 6th Floor, B Wing, Ashar IT Park, Road No. 16Z, Wagle Industrial Estate, Thane Maharashtra-400604 (Appellant) (Respondent) Appellant by Shri. Shikhar Patwardhan Respondent by Shri. Asif Karmali, SR. D.R. Date of Hearing 20.02.2025 Date of Pronouncement 28.02.2025 ORDER Per: Smt. Beena Pillai, J.M.: The Present appeal filed by the assessee arise out of order dated 13/12/2024 passed by NFAC Delhi for assessment year 2017-18 on following grounds of appeal: 2 ITA No. 259/Mum/2025; A.Y. 2017-18 Mr. Navin Harilal Minat Partner Shree Chamunda Realty “1. The learned CIT (Appeals) National Faceless Appeal Centre has erred in not dwelling upon the grounds of appeal raised by the appellant on merits on his own, where from the grounds itself it was clear that the rectification order passed u/s 154 was unwarranted 2. The learned CIT (Appeals) National Faceless Appeal Centre has erred in not giving sufficient opportunity to the appellant by fixing the hearings when the appellant was busy in complying with tax audits & return filing and completing the appellate proceedings in a hasty manner. 3. The appellant craves leave to add, alter, amend, and modify the aforesaid grounds of appeal at or any time before the hearing as may be advised from time to time.” Brief facts of the case are as under: 2. At the outset the Ld.AR submitted that the impugned order passed by the Ld.CIT(A) is an ex parte order. The Ld.AR submitted that the notice for hearing were issued by Ld.CIT(A) during the period 13th September, 2024 to 14th November, 2024. He submitted that, the said period was of tax audit & income tax return filing period. The consultant of the assessee requested for adjournment on the Income Tax portal. However, the Ld.CIT(A) passed impugned order without going into the merits of the case. The Ld.AR thus prayed for an opportunity of being heard on merit. 2.1 The Ld.CIT(A).DR though objected, could not controvert the submissions of Ld.AR. We have produced the submissions advanced by both sides in the light of the records placed before us. 3 ITA No. 259/Mum/2025; A.Y. 2017-18 Mr. Navin Harilal Minat Partner Shree Chamunda Realty 3.1 Admittedly, the notices were issued by the Ld. CIT(A) during the period when statutory dates for completing tax audit and filing of income tax returns were near. It is also a fact that assessee had filed adjournment letters requesting time which was not granted by the Ld. CIT(A). 3.2 In the interest of justice, this appeal is remitted back to Ld. CIT(A) for passing a detailed order on merits, by considering submissions/evidences filed by the assessee in respect of the claims raised therein. Needless to say that proper opportunity of being heard must be granted process. Accordingly grounds raised by the assessee stands partly allowed for statistical purposes. In the result appeal filed by the assessee stands partly allowed for statistical purposes. Order pronounced in the open court on 28/02/2025 Sd/- Sd/- (RENU JAUHRI) (BEENA PILLAI) Accountant Member Judicial Member Mumbai: Dated: 28/02/2025 Poonam Mirashi/Dragon Stenographer Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy 4 ITA No. 259/Mum/2025; A.Y. 2017-18 Mr. Navin Harilal Minat Partner Shree Chamunda Realty By order (Asstt. Registrar) ITAT, Mumbai "