M/S. NEW SIDDHARTH ENTERPRISES,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 22(1), MUMBAI, MUMBAI

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ITA 2669/MUM/2026Status: DisposedITAT Mumbai07 September 2026AY 2020-214 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and restored the matter for fresh adjudication. The assessee was granted one more opportunity to represent their case before the CIT(A) after paying a cost.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed ex-parte without providing sufficient opportunity of being heard. The assessee raised grounds related to the ex-parte order, reopening of assessment, addition of unsecured loans, and invocation of Section 115BBE.

What were the issues?

Whether the CIT(A) erred in passing an ex-parte order and confirming additions without providing sufficient opportunity to the assessee. The validity of reopening the assessment and the addition of unsecured loans were also key issues.

Which sections of the Income-tax Act were involved?

Section 147,Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: SHRI SANDEEP GOSAIN & SHRI JAGADISH

Pronounced: 07.09.2026

PER SHRI SANDEEP GOSAIN, JUDICIAL MEMBER: This appeal is filed by the Assessee against the order of Ld. NFAC, New Delhi vide DIN: ITBA/NFAC/S/250/2025-26/1085093913(1) dated 23-Jan-2026 for the Assessment Year 2020-21. The Assessee has raised the following grounds of appeal:

1) On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in passing the ex-parte order, without providing sufficient opportunity of being herd to the appellant. 2) On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in reopening the assessment proceeding u/s.147 of the Income Tax Act, 1961, without considering the fact and circumstances of the case. 3) On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in making an addition of Rs.82,00,000 u/s.68 of Income Tax Act,1961 by considering genuine unsecured loan taken from Meera Gems Ltd and Yashodha Gems Ltd as alleged unexplained cash credit, without considering the facts and circumstances of the case. 4) On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in invoking the provision of section 115BBE of the Income Tax act, 1961, without considering the facts and circumstances of the case. 5) On the facts and circumstances of the case as well as in law, the Learned CIT(A) as well as the Learned Assessing Officer has erred in not providing opportunity to the appellant to cross examine the party and evidence/documents/statement, thereby violating the principles of natural justice and rendering the impugned addition bad in law. 6) The appellant craves leave to add, amend, alter OR delete the said ground of appeal.

2.

From the records, we noticed that the assessee was proceeded ex parte before the Ld. CIT(A) and, consequently, considering the documents placed on record, the Ld. CIT(A) dismissed the appeal.

3.

Be that as it may, without going into the merits of the issues raised by the assessee and considering the fact that the assessee could not effectively represent his case before the Ld. CIT(A), and therefore, in the interest of justice, the Bench is of the view that one more opportunity be given to the assessee to represent his case before the Ld. CIT(A). Accordingly, considering the overall circumstances of the present case, we deem it proper to set aside the order passed by the Ld.

CIT(A) and restore the matter to the file of the Ld. CIT(A) for deciding the same afresh after providing adequate and sufficient opportunity of hearing, subject to a cost of Rs. 5,000/- imposed upon the assessee, which shall be deposited in the Prime Minister’s National Relief Fund. A copy of the receipt shall be placed on record before the Ld. CIT(A) within 30 days from the date of receipt of this order. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of the proceedings.

4.

Before parting, we wish to make it clear that our decision to restore the matter to the file of the Ld. CIT(A) shall in no way be construed as reflecting upon or expressing any opinion on the merits of the dispute, which shall be adjudicated independently by the Ld. CIT(A) in accordance with law.

5.

Needless to mention, the Ld. CIT(A) shall provide an adequate opportunity of hearing to the assessee. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of the proceedings.

6.

In the result, the appeal filed by the assessee stands allowed for statistical purposes.

Order pronounced in the open court on 07.09.2026.

Sd/- Sd/- JAGADISH SANDEEP GOSAIN ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai Dated: RY-SrPS Copy to: M/S. NEW SIDDHARTH ENTERPRISES, 3RD FLOOR, AMAN CHAMBERS, VEER SAVARKAR MARG , OPP. BENGAL 1 CHEMICALS, PRABHADEVI, MUMBAI, MUMBAI-400025, MAHARASHTRA ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 22(1), MUMBAI, 2 PIRAMAL CHAMBERS, LALBAUG, PAREL, MUMBAI - 400012, MUMBAI-400012, MAHARASHTRA 3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE

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