TOPPERS HAIR& BEAUTY SALON PRIVATE LIMITED ,MUMBAI V. ITO TDS WARD 2(3)(2), MUMBAI

ITA 1415/MUM/2025

AI Insights

The case involves M/s. Toppers Hair & Beauty Salon Private Limited, which appealed against the order of the National Faceless Appeal Center (NFAC)/Commissioner of Income Tax (Appeals) concerning the assessment years 2018-19 and 2019-20. The primary issue was the alleged default in TDS deduction under sections 194A and 194 of the Income Tax Act, 1961, amounting to Rs. 98,84,891, with a demand raised for Rs. 15,46,384. The assessee's initial appeal was dismissed ex-parte due to non-response, prompting the current appeal for a re-hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 397089 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HEMANSHU JOSHI; LD.
• Assessee Lawyers: KINJAL BHUTA; AN EXPARTE
• Keywords: Set aside; Opportunity of being heard; TDS
• Section: 201(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No.1414/M/2025 Assessment Year: 2019-20 & ITA No.1415/M/2025 Assessment Year: 2018-19 M/s. Toppers Hair & Beauty Salon Private Limited Shop no. 2, Ground & 1st Floor, Sai Vaibhav Bldg, Julelal Chowk,Tilak Road, Ghatkopar East, Mumbai 400077. PAN: AACCT6709Q Vs. ITO TDS Ward 2(3)(2) Room no. 323, 3rd Floor, Cumballa Hills, MTNL TE Building, Peddar Road, Dr. Gopala Deshmukh Marg, Mumbai-400026. (Appellant) (Respondent) Present for: Assessee by : Ms Kinjal Bhuta Revenue by : Shri Hemanshu Joshi, Ld. D.R. Date of Hearing : 23.04.2025 Date of Pronouncement : 27.05.2025 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 23.12.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2019-20. ITA No.1414 & 1415/MUM/2025 M/s. Toppers Hair & Beauty Salon Private Limited 2 2. Both the appeals under consideration are, having involved identical facts and issues and therefore for the sake of brevity the same were heard together and are being disposed off by this composite order, by taking into consideration ITA no. 1414/2025 as a lead case. 3. In this case, vide order dated 27.01.2023 u/s. 201 of the Act, the Assessee company was treated as an assessee as a default within the meaning of section 201(1) of the Act, for not deducting the TDS on amount of Rs. 98,84,891/- u/s. 194A and 194 of the Act and consequently demand of Rs. 15,46,384/- was raised. 4. The Assessee being aggrieved though challenged the order of the AO u/s. 201 of the Act by filling 1st appeal before the ld. Commissioner , however, despite of sending two notices, eventually made no reply/response and therefore the ld. Commissioner was constrained to decide the appeal of the assessee by an ex-parte order and ultimately dismissed the appeal of the Assessee in limine and without touching the merits of the case and therefore considering the peculiar circumstances for just and proper decision of case and substantial justice, as the Assessee has claimed that one last and final opportunity may be provided to the assessee, we are inclined to set aside the impugned order and consequently remanding the case to the file of the ld. Commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the assessee. The assessee is also directed to operate with the appellate proceeding. Thus, the case is remanded to the file of the ld. Commissioner for decision afresh accordingly. ITA No.1414 & 1415/MUM/2025 M/s. Toppers Hair & Beauty Salon Private Limited 3 5. In the result, both the appeal filed by the assessee on the same terms are allowed. Order pronounced in the open court on 27.05.2025. Sd/- Sd/- (PRABHASH SHANKAR) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER * Anandi.Nambi, Steno Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. "