THE BOMBAY MOTOR MER ASS LIMITED ,MUMBAI V. ITO WARD -5(3)(1), MUMBAI

ITA 2438/MUM/2025

AI Insights

The appeals by M/s. The Bombay Motor Mer Ass Limited were against the orders passed by the National Faceless Appeal Center (NFAC)/Commissioner of Income Tax (Appeals) for the assessment years 2012-13 & 2013-14. The primary issue was the addition of Rs.69,60,750/- on account of interest by the Assessing Officer under sections 147 and 144 of the Income Tax Act, 1961. The Assessee argued that due to the deaths of two directors who handled the tax matters, there was a delay and lack of representation, leading to an ex-parte order. The Tribunal, considering the circumstances and the affidavit provided, decided to remand the case for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712688 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AAFAQUI; LD.
• Assessee Lawyers: LILADHAR PANSANIA; LD
• Keywords: Opportunity of being heard
• Section: 147; 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI OMKARESHWAR CHIDARA, ACCOUNTANT MEMBER ITA Nos.2437 & 2438/M/2025 Assessment Years: 2012-13 & 2013-14 M/s. The Bombay Motor Mer Ass Limited, 7/B, Basement, Parekh Market, Kennedy Bridge, Girgaon, Mumbai – 400 004 PAN: AACCT4849B Vs. ITO – Ward- 5(3)(1), Room No.526, 5th Floor, Aaykar Bhawan, M.K. Road, Mumbai – 400 020 (Appellant) (Respondent) Present for: Assessee by : Shri Liladhar Pansania, Ld. A.R. Revenue by : Shri Leyaqat Ali Aafaqui, Ld. Sr. A.R. Date of Hearing : 09.07.2025 Date of Pronouncement : 30.07.2025 O R D E R Per : Narender Kumar Choudhry, Judicial Member: These appeals have been preferred by the Assessee against the orders even dated 02.07.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2012-13 & 2013-14. 2. At the outset, we observe that there is a delay of 190 days in filing of the instant appeal, on which the Assessee has claimed that the Assessee’s company was subject to audit under the provision of Companies Act, 2013 and was duly audited by the statutory Auditor for all the years including the assessment year under consideration. Accounts of the Assessee were audited by Divya Chandramouli & Printed from counselvise.com ITA Nos.2437 & 2438/M/2025 M/s. The Bombay Motor Mer Ass Limited 2 Associates, Chartered Accountants. Thereafter the tax related matters were attended by Mr. Paramjit Singh Chandok being director of the Assessee company somehow who passed away on 14.12.2018 and thereafter the tax matters were handled by Mr. Harwant Singh D. Sethi, being director of Assessee Company who also passed away on 27.07.2023. The Assessee in support of its claim has filed duly sworn affidavit dated 08.07.2025. Considering the peculiar facts and circumstances, as the factual aspect is not in denial as stated above, thus the delay in filing the instant appeal is condoned and the case is proceeded with the merits of the case. 3. Both the cases are inter connected having involved identical issues, therefore for the sake of brevity, the same were heard together and are being disposed of by this composite order by considering ITA No.2437/M/2024 as a lead case. 4. Coming to the instant case, we observe that the Assessing Officer (AO) vide assessment order dated 03.12.2019 u/s 147 r.w.s. 144 of the Act has made the addition of Rs.69,60,750/- on account of interest. 5. The Assessee, being aggrieved, challenged the said addition before the Ld. Commissioner and filed its submission on dated 09.03.2021. On perusing the same, the Ld. Commissioner sought for remand from the AO, who submitted its remand report dated 14.09.2023. Thus, the Ld. Commissioner by considering remand report as well as the peculiar facts that the Assessee has not provided any evidence during the appellate proceedings regarding the said expenses, held the assessment order as valid and consequently dismissed the appeal of the Assessee. 6. The Assessee, being aggrieved, has preferred the instant appeal before this Tribunal. Printed from counselvise.com ITA Nos.2437 & 2438/M/2025 M/s. The Bombay Motor Mer Ass Limited 3 7. The Assessee has claimed that initially the tax proceedings were handled by Mr. Paramjit Singh Chandok, being Director of the Assessee Company who unfortunately died on 14.12.2018. Further, summons were issued to one of the directors Mr. Harwant Singh D. Sethi, who also passed away on 27.07.2023. Therefore, the Assessee remained to be represented before the Ld. Commissioner which resulted into passing the impugned order as ex-parte and therefore in the interest of justice, one opportunity may be given to the Assessee. The Assessee, in support of its contention also filed duly sworn affidavit dated 08.07.2025 of Mr. Narinder Singh Bakshi, being a Director of the Assessee company. 8. Considering the aforesaid peculiar facts and circumstances as not refuted by the Ld. D.R. as well, we, for just and proper justice of the case and substantial justice, are inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh, suffice to say,by affording reasonable opportunity of being heard to the Assessee. Thus, it is ordered accordingly. 9. Coming to ITA No.2438/M/2024, in view of our judgment in ITA No.2437/M/2024, this case is also remanded to the file of the Ld. Commissioner for decision afresh. 10. In the result, both the appeals under consideration are allowed for statistical purposes in the above terms. Order pronounced in the open court on 30.07.2025. Sd/- Sd/- (OMKARESHWAR CHIDARA) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER * Kishore, Sr. P.S. Printed from counselvise.com ITA Nos.2437 & 2438/M/2025 M/s. The Bombay Motor Mer Ass Limited 4 Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. Printed from counselvise.com "