DEVASENAPATI SALES AGENCY PVT LTD, MUMBAI vs. ITO WARD 9(3)(1), MUMBAI

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ITA 5318/MUM/2025Status: DisposedITAT Mumbai29 April 2026AY 2013-144 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, noting the assessee's non-compliance and the need for substantial justice, decided to remand the case back to the CIT(A) to provide one more opportunity to the assessee to present its case, subject to a deposit.

What were the facts?

The assessee company filed its original return of income, but the case was reopened under Section 147. The Assessing Officer determined a higher income, and the CIT(A) dismissed the assessee's appeal due to non-prosecution after repeated non-compliance.

What were the issues?

The primary issues revolve around the validity of reassessment proceedings and the correctness of the income determined by the AO and confirmed by the CIT(A), compounded by the assessee's failure to prosecute its appeal.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 144B,Section 69A

AI-generated summary — verify with the full judgment below

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI PRABHASH SHANKAR

For Respondent: Shri Annavaran Kosuri, (Sr. DR)
Hearing: 17.03.2026Pronounced: 29.04.2026

PER PRABHASH SHANKAR [A.M.] :- The present appeal arising from the appellate order dated 15.07.2025 is preferred by the assessee against the order passed by the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] pertaining to assessment order passed u/s. 147 r.w.s. 144B of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 15.05.2023 for the Assessment Year [A.Y.] 2013-14. P a g e | 2 A.Y. 2013-14 Devasenapati Sales Agency Pvt. Ltd.

2.

The grounds of appeal are as under:-

1.

On the facts and in the circumstances of the case and in the law, the reassessment proceedings initiated by issuance of notice u/s. 148 of the Income Tax Act 1961 is invalid and bad in law

2.

On the facts and in the circumstances of the case and in law, the Assessment order passed u/s 147 of the Income Tax Act 1961 is invalid and bad in law.

3.

On the facts and in the circumstances of the case and in law, the learned Commissioner of Income Tax - Appeal (CIT-A) erred in confirming the action of the Assessing Officer (AO) in determining the income at Rs. 3,08,33,090/- as against the returned income of Rs. 3,62,990/-.

4.

On the facts and in the circumstances of the case and in law, the learned Commissioner of Income Tax Appeal (C.I.T.-A) erred in confirming the action of the Assessing Officer (AO) in determining and adding the income u/s 69A to the tune of Rs. 1,45,61,17,760/-.

3.

Briefly stated facts of the case are that the assessee is a Private Limited Company which filed original return of income declaring an income of Rs. 3,62,990/-. Subsequently, the case was reopened and notice u/s 148 of the Act was issued. Finally, the AO completed the assessment by passing an order u/s 144B of the Act and determining income at Rs. 3,08,33,090/-.

4.

The assessee filed appeal before the ld.CIT(A).During the course of appeal proceedings, several notices for hearing were issued to the assessee, but it neither filed any response nor filed any submissions in P a g e | 3 A.Y. 2013-14 Devasenapati Sales Agency Pvt. Ltd. support of grounds of appeal. The details of the notices issued are as under: S.No. Date of Compliance Remarks Notice Sent Date 1 01.10.2023 Issued Enablement of Communication Window. No response from the appellant. 2 04.07.2024 10.07.2024 Request for adjournment 3 06.05.2025 21.05.2025 Request for adjournment 4 23.05.2025 09.06.2025 No response from the appellant 5 12.06.2025 27.06.2025 No response from the appellant 6 29.06.2025 14.07.2025 No response from the appellant

5.

In view of such non-compliant attitude, the ld.CIT(A) dismissed the appeal in limine for non prosecution.

6.

Before us, none attended for the assessee.

7.

Considering the peculiar fact that the issues involved in this case remain to be adjudicated in its right perspective and proper manner, due to default of the assessee for non-submissions of the relevant submissions and documents, we are inclined not to entertain the case of the assessee. However, for just and proper decision of the case and substantial justice, we deem it appropriate to afford one more opportunity to him to substantiate its case by producing relevant submissions and documents before the concerned authority. Thus, the case is remanded to the file of the ld.CIT(A),suffice it to say by affording reasonable opportunity of being heard to the assessee and subject to P a g e | 4 A.Y. 2013-14 Devasenapati Sales Agency Pvt. Ltd. deposit of Rs. 25,000/- in Revenue Department under “Other Heads”, within 15 days from today.

8.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 29/04/2026. NARENDER KUMAR CHOUDHRY PRABHASH SHANKAR (न्याययक सदस्य /JUDICIAL MEMBER) (लेखाकार सदस्य/ACCOUNTANT MEMBER)

Place: म ुंबई/Mumbai ददनाुंक /Date 29.04.2026 Lubhna Shaikh / Steno

आदेश की प्रयियलयि अग्रेयिि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यावपि प्रवि //// आदेशानुसार/ BY ORDER,

उि/सहायक िंजीकार (Dy./Asstt.

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