SHREEKISHAN JOSHI,MUMBAI V. ASSESSING OFFICER, MUMBAI

ITA 43/MUM/2025

AI Insights

The case involves Shreekishan Joshi, who is engaged in civil and interior construction and trading through his proprietary concern, Salasar Exteriors. The Income Tax Officer (ITO) reopened the assessments for the assessment years 2017-18, 2018-19, and 2019-20, based on information that the assessee had taken accommodation entries in the form of bogus purchases. The assessments were completed under sections 147 and 144 of the Income Tax Act, 1961, with additions made for alleged bogus purchases. The assessee's appeals to the CIT(A) were dismissed ex-parte as he did not respond to the notices, which were sent to an incorrect email ID. The Tribunal found this procedural oversight significant and restored the matter to the CIT(A) for a fresh decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 38057 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AAFAQUI
• Assessee Lawyers: DINESH KUKREJA; PRIYANSHI CHOKSHI
• Keywords: Bogus purchase; Bogus
• Section: 147

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “B”, MUMBAI BEFORE JUSTICE (RETD.) SHRI C.V. BHADANG, PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA No. A.Y. Appellant Respondent 41/Mum/2025 2017-18 Shreekishan Joshi, 922/923, 9th Floor, Corporate Avenue, Sonawala Road, Goregaon (E), Mumbai [PAN: AABPJ7710M] ITO, Ward-42(3)(3), Bandra Kurla Complex, Mumbai 42/Mum/2025 2018-19 43/Mum/2025 2019-20 For Assessee : Shri Dinesh Kukreja & Ms. Priyanshi Chokshi For Revenue : Shri Leyaqat Ali Aafaqui Date of Hearing : 11-03-2025 Date of Pronouncement : 11-03-2025 O R D E R PER B.R. BASKARAN, A.M : All the three appeals filed by the assessee are directed against the order(s) passed by the Ld. Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi [‘Ld.CIT(A)’] and they relate to AYs. 2017-18, 2018-19 and 2019-20. 2 ITA Nos. 41, 42 & 43/Mum/2025 2. Brief facts of the case are that the assessee is engaged in the business of civil and interior construction and also carrying on trading business through his proprietary concern, named, Salasar Exteriors. The AO has reopened the assessment of all these three years on the basis of information received by him that the assessee has taken accommodation entries in the form of bogus purchases. Accordingly, the AO completed the assessments of all the three years u/s. 147 r.w.s. 144 of the Income Tax Act, 1961 (‘the Act’) by making an addition of alleged bogus purchases. 3. Before the Ld.CIT(A), the assessee did not respond and hence, the Ld.CIT(A) confirmed the addition made in all the three years in the ex-parte order passed by him. Hence, the assessee has filed these three appeals. 4. We heard the parties and perused the record. At the outset, we notice that the Ld.CIT(A) did not adjudicate the grounds urged by the assessee before him in all the three years on merits, since the assessee did not respond to the notices issued by him. In this regard, the Ld.AR submitted that the notices were sent by the Ld.CIT(A) to the wrong e-mail ID and hence, the assessee was not aware of the said notices. The Ld.AR submitted that the assessee has a good chance to win his case both on legal grounds and also on merits. 5. We heard the Ld.DR and perused the record. Since the Ld.CIT(A) has passed the orders ex-parte without adjudicating the grounds on merits, we feel it appropriate to restore all the issues to the file of Ld.CIT(A) for adjudicating them afresh, after affording adequate opportunity of being heard to the assessee. We also direct the assessee to fully co-operate with 3 ITA Nos. 41, 42 & 43/Mum/2025 the Ld.CIT(A) for expeditious disposal of the issues raised in all these appeals. 6. In the result, all the appeals of the assessee are partly allowed. Order pronounced in the open court on 11-03-2025 Sd/- Sd/- (JUSTICE (RETD.) C.V. BHADANG) PRESIDENT (B.R. BASKARAN) ACCOUNTANT MEMBER Mumbai, Date: 11-03-2025 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, ITAT, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai "