RAKESH BALKRISHNA MORE,THANE vs. INCOME TAX OFFICER, KALYAN

IN THE INCOME TAX APPELLATE TRIBUNAL“J(SMC)” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER ITA No. 5534/MUM/2026 (AY: 2019-20) (Physicalhearing) Rakesh Balkrishna More Income Tax Officer, Kalyan 2nd Floor, Opp. Laxmi Market, Near vs 2nd Floor, Rani Mansion, Murbad Jarimari Temple, Kalyan-Dombivali, Road, Kalyan, Kalyan-Dombivali, Maharashtra – 421301. Maharashtra – 421301. [PAN: AIKPM5900F] Appellant / Assessee Respondent / Revenue Assessee by Shri Prashant Ramesh Shinkar, Advocate Revenue by Ms. Jayshree Thakur, Sr. DR Date of hearing 06.08.2026 Date of pronouncement 06.08.2026 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by assessee is directed against the order of ld. CIT(A)/NFACdated 10.03.2026 for Assessment Year (AY) 2019-20. The assessee has raised following grounds of appeal: “1. On the facts and in circumstances of the case and in the law, the order under section 250 of the I.T. Act, 1961, passed by Hon'ble Commissioner of Income-tax (Appeals) is invalid and bad in law. 2. On the facts and in circumstances of the case and in law, Hon'ble Commissioner of Income-tax (Appeals) erred in dismissing an appeal by finding no infirmity in the assessment order and dismissing all the grounds of appeal raised by the appellant. 3. On the facts and in circumstances of the case and in law, the learned Assessing Officer erred in making an addition of Rs.1,95,935/-to the declared total income, being disallowance of expense u/s 40A(3) of the Income-tax Act 1961, although an Appellant has valid explanation for not taxing the same. 4. On the facts and in circumstances of the case and in law, the learned Assessing Officer erred in relying on the information disseminated during the

ITA No.5534/Mum/2026 (AY: 2019-20) Rakesh Balkrishna More

course of survey action u/s 133A conducted in the case of M/s Girison Traders, M/s Shivam Liquors and M/s National Liquors on 14.09.2022. 5. On the facts and in circumstances of the case and in law, the learned Assessing Officer erred in charging interest u/s 234A, 234B and 234C. 6. On the facts and in circumstances of the case and in law, the learned Assessing Officer erred in initiating the Penalty u/s 270A and u/s 272A(1)(d). 7. The appellant craves leave to add, amend, alter or delete any or all of the grounds of appeal at any time.” 2. Rival submissions of both the parties have been heard and record perused. The learned authorised representative (ld. AR) of the assessee submits that assessment was completed under section 144. The assessee could not make timely compliance due to death of his mother. The ld. CIT(A) has not given fair and reasonable opportunity. Though, in para 4 of impugned order, the ld. CIT(A) has recorded that four opportunities were given. However, a very little time 2 to 4 days was allowed in each such show cause notices. Thus, the assessee was denied fair and reasonable opportunity. The ld. AR of the assessee submits that assessee has good case on merit and is likely to succeed if one more opportunity is allowed to contest the case before AO. The AO made disallowance of expenses under section 40A(3). 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the Revenue supported the order of lower authorities. The ld. Sr. DR for the Revenue submits that a reasonable and fair opportunity was given to the assessee. 4. We have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. We find that AO as

ITA No.5534/Mum/2026 (AY: 2019-20) Rakesh Balkrishna More

well as ld. CIT(A) passed the order for the want of submissions. Before us, the ld. AR of the assessee has shown reasonable cause for non- compliance before lower authorities, which we have recorded in para-2 above. Therefore, keeping in view the principle of natural justice, the matter is restored back to the file of AO to pass the assessment order afresh. Needless to direct that before passing the order, the assessing officer shall allow reasonable opportunity to the assessee. The assessee is directed to be more vigilant and to furnish all details and written submission in support of his claim. In the result, the grounds of appeal allowed for statistical purpose. 5. In the result, appeal filed by assessee is allowed for statistical purpose. Order was pronounced in open court on 06/08/2026 at the time of hearing Sd/- Sd/- JAGADISH PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

MUMBAI, Dated: 06/08/2026 Biswajit Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order

Assistant Registrar ITAT, Mumbai