VARUN DAMANI,MUMBAI V. ITO WARD 17(3)(5), FIRST FLOOR, KAUTILYA BHAVAN, BKC MUMBAI

ITA 4723/MUM/2024

AI Insights

The case involves an appeal by Varun Damani against the order of the Learned National Faceless Appeal Centre (NFAC), Delhi, which was passed under section 250 of the Income Tax Act, 1961. The appeal was initially against the order of the Income-tax Officer-17(3)(5), Mumbai, concerning disallowances under various heads including section 14A, interest income, and income from house property for the assessment year 2013-14. The assessee did not receive the notices from the CIT(A) due to them being directed to the spam folder, leading to an ex parte decision. The Tribunal found that the assessee was not given a fair opportunity to present his case and thus remanded the matter back for a fresh hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32101 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 29-10-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 14-09-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH KUMAR
• Assessee Lawyers: SAURABH BHAT
• Keywords: Opportunity of being heard
• Section: 143(3); 250; 14A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “F”, MUMBAI BEFORE SHRI. B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No.4723/Mum/2024 (Assessment Year: 2013-14) Varun Damani, 5th Floor, Dhiraj Chambers, Muzban Road, Fort, Mumbai- 400 001 PAN : AABPD2303G vs ITO,Ward 17(3)(5), Mumbai 1st Floor, Kautilya Bhavan, BKC Mumbai-400 053 APPELLANT RESPONDENT Assessee by : Shri Saurabh Bhat Respondent by : Shri Ashish Kumar (SR.AR) Date of hearing : 29/10/2024 Date of pronouncement : 29/10/2024 O R D E R PER ANIKESH BANERJEE, J.M: Instant appeal of the assessee is preferred against the order of theLearned National Faceless Appeal Centre (NFAC), Delhi [for brevity, ‘Ld.CIT(A)’] passed under section 250 of the Income Tax Act, 1961 (for brevity, the “Act”) date of order 16/07/2024. The impugned orderis emanated from the order of the Learned Income-tax Officer-17(3)(5), Mumbai, order passed under section 143(3) of the Act. 2 ITA No.4723 /Mum/2024 Varun Damani 2. The Ld.AR argued that the addition was made under different heads for disallowance under section 14A amount to Rs.4,00,061/-, interest income amount to Rs.2,28,150/-, Income from house property amount to Rs.3,83,000/-. The aggrieved assessee filed an appeal before the Ld. CIT(A). The Ld.CIT(A) issued the notice of hearing, but all the e-mails were gathered in the spam folder, so the assessee was not able to respond to the notices issued by the Ld. CIT(A) during appeal proceeding. The impugned appeal order was passed without considering the merit of the case and being aggrieved, the assessee filed an appeal before us. 3. We have considered the arguments presented by both parties and the documents on record. The appeal order was issued ex parte, without adjudicating the merits of the case. The Ld. AR provided sufficient reasons for not receiving the notices of hearing duly issued by the Ld. CIT(A). Ld. DRaccepted the submissions made by the Ld. AR and raised no significant objections. We find that the assessee was not provided a reasonable opportunity to present their case before the Ld. CIT(A). Consequently, we are remanding the matter back to the file of Ld. CIT(A) for a fresh adjudication. We refrain from expressing any opinion on the merits of the case to avoid influencing the ongoing appeal proceedings. It is understood that the assessee should be afforded a reasonable opportunity to be heard in the remanded proceedings. At the same time, the assessee is expected to act with due diligence and cooperate with the Ld. CIT(A) to facilitate a swift completion of the appeal. 3 ITA No.4723 /Mum/2024 Varun Damani 4. In the result, the appeal of the assessee bearing ITA No.4723/Mum/2024 is allowed for statistical purpose. Order pronounced in the open court on 29th day of October 2024. Sd/- sd/- (B.R. BASKARAN) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,दिन ांक/Dated: 29/10/2024 Pavanan Copy of the Order forwarded to: 1. अपील र्थी/The Appellant , 2. प्रदिव िी/ The Respondent. 3. आयकरआयुक्त CIT 4. दवभ गीयप्रदिदनदि, आय.अपी.अदि., मुबांई/DR, ITAT, Mumbai 5. ग र्डफ इल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, Mumbai "