What did the Tribunal hold?

The Tribunal restored the matter to the file of the CIT(A) to provide the assessee with an opportunity to contest the case on merits. The CIT(A) was given liberty to call for a remand report from the AO if the assessee filed supporting evidence.

The Assessing Officer (AO) made an addition of Rs. 17,70,259/- due to disallowance of expenses, stating the assessee did not file a valid reply. The CIT(A) confirmed this ex-parte order. The assessee requested another opportunity to contest the case on merits.

What were the issues?

Whether the assessee should be granted another opportunity to present their case on merits before the lower authorities, given the ex-parte nature of the previous orders.

Vijay Harbans Arora, Andheri vs DCIT | ITAT Mumbai 2026

PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of ld. CIT(A)/NFACdated 09.12.2025, for the Assessment Year (AY) 2017-18. 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 on 07.03.2025. The AO while passing the assessment order made addition of Rs. 17,70,259/- on account of disallowance of various expenses by taking view that assessee has not filed a valid reply. The ld. CIT(A) confirmed the action of AO in ex-parte proceedings. The ld. AR of the assessee submits that one more opportunity may be given to assessee to contest the case on merit before lower authorities. He undertake on behalf of assessee to be more vigilant in future in making timely compliance.

ITA No.2532/Mum/2025 (AY 2017-18) Vijay Harbans Arora 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue submits that assessee is a habitual defaulter in not making compliance in time. Therefore, the assessee does not deserve any further leniency. 4. We have considered the contentions of both the parties and considering the fact that both the lower authorities have passed order for the want of proper reply for assessee. Hence, keeping in view, the principle of natural justice and the fact that assessee is interested in pursuing his case on merit, therefore, the matter is restored back to the file of ld. CIT(A). The ld. CIT(A) will be at liberty to call remand report from AO in the event of filing any evidence in support of his claim. The assessee is also directed to be more vigilant in future in making timely compliance. In the result, grounds of appeal of assessee are allowed for statistical purpose. 5. In result, the appeal of assessee is allowed for statistical purpose. Order pronounced in open Court on 23.07.2026 Sd/- Sd/- Sd/- Sd/- GIRISH AGRAWAL PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER

Mumbai, Dated: 23/07/2026 Biswajit Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT and By Order (5) Guard file.

Assistant Registrar ITAT, Mumbai

VIJAY HARBANS ARORA ,ANDHERI vs. DY COMMISSIONER OF INCOME TAX CIRCLE 32 1 MUMBAI , MUMBAI

What did the Tribunal hold?

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