ANIL FINATURE PVT LTD ,MUMBAI vs. ITO WARD 14(1)(1), MUMBAI

The assessee is a private limited company and filed the return of income for AY 2009-10 on 10.09.2009 declaring a total income of Rs. 18,18,700/- and for AY 2010-11 the return was filed on 15.09.2010 declaring total income of Rs. 38,61,110/-. The assessment of both these years were reopened based on the information received from DIT (Inv.), Mumbai that certain brokers on NSE were misusing the facility of CCM in the F&O Segment in order to shift out the profits or shift in the losses of other companies with the objective to reduce taxable income. The AO had a reason to believe that the assessee is one of the beneficiaries of CCM and accordingly reopened the assessment. After considering the submissions of the assessee the AO concluded that the assessee has booked an artificial loss for AY 2009-10 to the tune of Rs. 11,40,237/- and for AY 2010-11 it is alleged that the assessee has shifted out a profit of Rs. 88,71,115/- and a loss of Rs. 11,90,415/-. The AO while completing the assessment u/s. 143(3) r.w.s. 147 made additions / disallowances in both these AYs to this extent. Aggrieved the assessee filed further appeal before the CIT(A). The CIT(A) confirmed the order of the AO on the ground that the assessee has not furnished any details and accordingly passed an ex-parte order. The assessee is in appeal before the Tribunal against the order of the CIT(A).

We heard the parties and perused the material on record. The ld. AR during the course of hearing submitted that the assessee has furnished the details before the CIT(A) on 04.10.2024 which have not been considered by the CIT(A) while dismissing the appeal ex-parte. The ld. AR submitted the acknowledgement of the Anil Finature Pvt. Ltd. written submissions along with Paper Book were filed on the said date. The ld. AR further submitted that the appeal got transferred from CIT(A)-50, Mumbai to CIT(A)-47 and in response to the notice issued by the CIT(A)-47, Mumbai the assessee vide letter dated 26.08.2025 had submitted that all the details pertaining to the impugned addition/disallowance were filed before the CIT(A)-50, Mumbai on 04.10.2024. However, on perusal of the order of the CIT(A), we notice that there is no mention regarding the details submitted by the assessee. Further on perusal of the order of the CIT(A) we notice that the CIT(A) has tabulated the various notices issued to the assessee from 02.01.2020 to 20.08.2025 during which period 9 notices were issued and it is mentioned therein that the assessee has not responded except two occasions when adjournments were filed. We also notice that one of the dates as per the date was 04.10.2024 where the CIT(A) has recorded that the assessee has not filed any response. Considering the overall facts and circumstances of the case in the interest of natural justice, we are of the view that the details submitted by the assessee which have not been considered by the CIT(A) need to be factually examined. Accordingly, we are remitting the appeal back to the CIT(A) with a direction to consider the details already filed by the assessee and call for any further details as may be required to decide the appeal on merits in accordance with law. The assessee is directed to furnish the details as may be called for and co-operate with appellate proceedings. It is ordered accordingly.

In result, the appeals of the assessee are allowed for statistical purposes.