SUPREME TRADERS ,MUMBAI V. ACIT CIRCLE 19(3), MUMBAI

ITA 153/MUM/2025

AI Insights

The case involves Supreme Traders, the appellant, contesting an order from the CIT(A), National Faceless Appeal Centre, which upheld an assessment order treating a sum of Rs. 24,86,627 as undisclosed income under section 69A of the Income-tax Act. The assessee had not filed a return of income for the assessment year 2017-18, and the amount in question was credited to their bank account. The Assessing Officer, after not receiving any explanation from the assessee, completed the assessment. The CIT(A) dismissed the appeal due to the absence of submissions from the assessee, who cited the death of the managing partner and difficulties in retrieving bank statements due to a merger. The Tribunal found merit in the assessee's request for a remand to the CIT(A) for a fresh examination of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470794 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: K
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 147

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “K”(SMC) BENCH MUMBAI BEFORE SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 153/MUM/2025 Assessment Year: 2017-18 Supreme Traders 2nd Floor, 210, Regal Diamond Centre, Tata Road No.1, Opera House, Girgaon S.O, Mumbai – 400 004 (PAN : AACFS3046E) Vs. Assistant Commissioner of Income-tax, Circle – 19(3), Mumbai (Appellant) (Respondent) Present for: Assessee : Ms. Parvathy Ganesh, CA Revenue : Shri Kiran Unavekar, Sr. DR Date of Hearing : 13.02.2024 Date of Pronouncement : 25.02.2025 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), vide order no. ITBA/NFAC/S/250/2023-24/1070735449(1), dated 28.11.2024 passed against the assessment order by Assessment Officer, u/s. 147 r.w.s. 144 of the Income-tax Act (hereinafter referred to as the “Act”), dated 18.05.2023 for Assessment Year 2017-18. 2 ITA No.153/MUM/2025 Supreme Traders, AY 2017-18 2. Grounds taken by the assessee are reproduced as under: “(a) The learned National Faceless Appeal Centre (NFAC), Delhi has dismissed the appeal of the appellant inspite of the fact that proper application for adjournment of hearing and grant of additional time for making the submission was filed (b) The learned NFAC, Delhi failed to appreciate the fact that the managing partner had expired, and the other partner were not aware of the tax matters and did not have the required data for submission before the appellate authority (c) The learned NFAC, Delhi failed to appreciate the fact that an application had been made to the bank for retrieval of Bank Statement but since the ING Vysya bank had merged with Kotak Mahindra bank, the retrieval of documents by the bank was taking time. (d) The appellant prays that the additions made of Rs. 24,86,627 to the income of the appellant which represent loan repayment and capital contribution of partners be deleted.” 3. Brief facts of the case are that assessee did not file its return of income u/s.139 for the year under consideration. Ld. Assessing Officer took note of credit of Rs.24,86,627/- in the bank account of the assessee, bearing account No.550011008624 with Kotak Mahindra Bank Ltd. and called for explanation in this respect. In absence of any response from the assessee, ld. Assessing Officer completed the assessment by treating the said sum as undisclosed income u/s.69A of the Act. Assessee filed appeal before the ld. CIT(A), but failed to make any submissions in support of the grounds raised in the said appeal. Accordingly, ld. CIT(A) upheld the addition made by ld. Assessing Officer and the appeal was dismissed. Aggrieved, assessee is in appeal before the Tribunal. 4. Before us, ld. Counsel for the assessee pleaded to restore the matter back to the file of ld. CIT(A) by giving an assurance that all necessary compliances shall be made, once an opportunity is given to the assessee. 3 ITA No.153/MUM/2025 Supreme Traders, AY 2017-18 5. We have perused the orders of the authorities below and taking into consideration, submission made by ld. Counsel for the assessee, in the interest of justice and fair play, we find it appropriate to remit the matter back to the file of ld. CIT(A) for denovo meritorious adjudication of the grounds raised in the first appeal. Needless to say, assessee be given reasonable opportunity of being heard and to make any further submissions, if so desired. Assessee is also directed to be diligent in attending the hearing proceedings. Accordingly, grounds taken by the assessee are allowed for statistical purposes. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 25 February, 2025 Sd/- Sd/- (Sandeep Singh Karhail) (Girish Agrawal) Judicial Member Accountant Member Dated: 25 February, 2025 MP, Sr.P.S. Copy to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. 5. Guard File CIT BY ORDER, (Dy./Asstt.Registrar) ITAT, Mumbai "