ZENAL JAINAM DEVELOPERS,MUMBAI V. ACIT- CIRCLE 32(1), MUMBAI

ITA 5518/MUM/2024

AI Insights

The case involves two appeals by M/s. Zenal Jainam Developers against orders from the CIT(A)-37, Mumbai & NFAC Delhi, related to the assessment year 2012-13. The first appeal (ITA No. 4358/Mum/2017) contested a quantum addition of Rs.30,00,000 made by the Assessing Officer under section 68 of the Income Tax Act, claiming the addition was erroneous as the advance was received in a prior assessment year. The second appeal (ITA No. 5518/Mum/2024) was against the penalty levied under section 271(1)(c) of the Act, which was contingent on the outcome of the first appeal. The Tribunal found that the CIT(A) had dismissed the first appeal without examining the merits and thus restored both issues to the CIT(A) for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469879 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PUSHKARAJ BHANGEPATIL; DR
• Assessee Lawyers: SHALIN DIVATIA
• Keywords: Set aside; Opportunity of being heard
• Section: 271(1)(c); 68

Judgement Text

"| आयकर अपीलीय अिधकरण \fा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 4358/Mum/2017 Assessment Year: 2012-13 M/s. Zenal Jainam Developers Shop No. 6, Saurabh Apartments Shahaji Raje Road, Nr. Bhuta Ville Parle (East) Mumbai - 400057 [PAN: AAAAD2573N] Vs Asstt. Commissioner of Income tax, Range 25(3), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) I.T.A. No. 5518/Mum/2024 Assessment Year: 2012-13 M/s. Zenal Jainam Developers Shop No. 6, Saurabh Apartments Shahaji Raje Road, Nr. Bhuta Ville Parle (East) Mumbai - 400057 [PAN: AAAAD2573N] Vs Asstt. Commissioner of Income tax, Circle-32(1), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Shalin Divatia, C.A. Revenue by : Shri Pushkaraj Bhangepatil, Sr. D/R सुनवाई की तारीख/Date of Hearing : 05/02/2025 घोषणा की तारीख /Date of Pronouncement: 05/02/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: The captioned appeals by the assesse are preferred against two separate orders of the ld. CIT(A)-37, Mumbai & NFAC Delhi, [hereinafter ‘the ld. CIT(A)’], dated 22/03/2017 and 09/09/2024 respectively, pertaining to AY 2012-23. 2. ITA No. 4358/Mum/2017, is the appeal against the quantum addition of Rs.30,00,000/- made by the AO u/s 68 of the Act. I.T.A. No. 4358/Mum/2017 I.T.A. No. 5518/Mum/2024 2 3. Before us, the ld. Counsel for the assessee stated that the impugned advance from M/s. J.K. Corporation was taken in earlier assessment year i.e., FY 2007-08 relevant to AY 2008-09 and, therefore, no addition can be made u/s 68 of the Act for the year under consideration. 4. We find that the ld. CIT(A) has dismissed the appeal in limine without going into the merits of the case and without verifying whether the impugned advance was actually taken in FY 2007-08. Therefore, in the interest of justice and fairplay, we deem it fit to restore this issue to ld. CIT(A) with a direction to consider the documentary evidence and decide the issue afresh after affording reasonable and adequate opportunity of being heard to the assessee. 5. Since we have set aside the quantum addition to the file of the ld. CIT(A), ITA No. 5518/Mum/2024 is also restored to the file of the ld. CIT(A) being levy of penalty u/s 271(1)(c) of the Act, to be decided after deciding the appeal against the quantum addition. Both the appeals are allowed for statistical purposes. 6. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the Court on 5th February, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 05/02/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs I.T.A. No. 4358/Mum/2017 I.T.A. No. 5518/Mum/2024 3 आदेश की \u0015ितिलिप अ\u001aेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001c / The Appellant 2. \u0015\u001dथ\u001c / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "