LIFE TELECOM PRIVATE LIMITED ,MUMBAI vs. ITO WARD 12(3)(1), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A” MUMBAI

BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI ANIKESH BANERJEE (JUDICIAL MEMBER)

ITA No. 5717/MUM/2025 Assessment Year: 2010-11

Life Telecom Private Limited, Assessment Unit Income Tax Flar No.1, first Floor, Nivetia Officer, HO Ward 12(3)(1), Vs. Bunglow, Niveta Rani Sati Aayakar Bhavan, M.K. Road, Marg, Malad East S.O, Mumbai – 400020. Mumbai – 400097, Maharashtra. PAN NO. AABCL 6420 D Appellant Respondent

: Shri Raman, CA Assessee by : Shri Surendra Mohan (SR. DR) Revenue by

: 20/04/2026 Date of Hearing Date of pronouncement : 22/05/2026 ORDER PER OM PRAKASH KANT, AM

This appeal by the assessee is directed against order dated 15.07.2025, passed by the learned Commissioner of Income-Tax Appeals, National Faceless Appeals Centre, Delhi (in short, the Ld. CIT(A)), for Assessment Year (in short ‘A.Y’), 2010-11, raising following grounds:

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“1. Validity of Reassessment Proceedings: 1. Validity of Reassessment Proceedings: 1. Validity of Reassessment Proceedings: On the facts and in law, the learned CIT(A) erred in facts and in law, the learned CIT(A) erred in facts and in law, the learned CIT(A) erred in upholding the reassessment upholding the reassessment-initiated u/s 147 r.w.s. 148 initiated u/s 147 r.w.s. 148 of the Act without appreciating that: of the Act without appreciating that: (a) The reopening was merely based on information (a) The reopening was merely based on information (a) The reopening was merely based on information from the Investigation Wing without any independent from the Investigation Wing without any independent from the Investigation Wing without any independent application application of mind by the AO. (b) There was no tangible material or "reason to (b) There was no tangible material or "reason to (b) There was no tangible material or "reason to believe" that income had escaped assessment; believe" that income had escaped assessment; believe" that income had escaped assessment; reopening was solely on suspicion and conjecture. reopening was solely on suspicion and conjecture. reopening was solely on suspicion and conjecture. (c) The mandatory jurisdictional requirements of (c) The mandatory jurisdictional requirements of (c) The mandatory jurisdictional requirements of Section 147 were not fulfilled, rendering Section 147 Section 147 were not fulfilled, rendering th were not fulfilled, rendering the th reassessment bad in law and liable to be quashed. reassessment bad in law and liable to be quashed. reassessment bad in law and liable to be quashed. 2. Addition of Cash Sales of 2. Addition of Cash Sales of ₹2.27,00,000/ 2.27,00,000/- as Unexplained Cash Credit u/s 68: Unexplained Cash Credit u/s 68: (a) All sales and purchases were duly accounted for in the (a) All sales and purchases were duly accounted for in the (a) All sales and purchases were duly accounted for in the regular books, which were audited under the Companies regular books, which were audited under the Companies regular books, which were audited under the Companies Act and Inc Act and Income Tax Act. (b) The alleged cash sales were already included in (b) The alleged cash sales were already included in (b) The alleged cash sales were already included in turnover and offered to tax; taxing them again under turnover and offered to tax; taxing them again under turnover and offered to tax; taxing them again under section 68 results in double taxation. section 68 results in double taxation. (c) Once purchases were accepted, corresponding sales (c) Once purchases were accepted, corresponding sales (c) Once purchases were accepted, corresponding sales could not be disbelieved. could not be disbelieved. (d) The CIT(A) fail (d) The CIT(A) failed to appreciate supporting documents ed to appreciate supporting documents including including including sales register, sales register, sales register, purchase register, purchase register, purchase register, audited audited audited accounts, and stock summary furnished by the assessee. accounts, and stock summary furnished by the assessee. accounts, and stock summary furnished by the assessee. 3. Onus of Proof under Section 68: 3. Onus of Proof under Section 68: The learned CIT(A) erred in law in holding that the The learned CIT(A) erred in law in holding that the The learned CIT(A) erred in law in holding that the assessee failed to disc assessee failed to discharge the onus u/s 68, ignoring that harge the onus u/s 68, ignoring that

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once sales are recorded in audited books, the burden once sales are recorded in audited books, the burden once sales are recorded in audited books, the burden shifts to the Revenue to prove that the same were bogus or shifts to the Revenue to prove that the same were bogus or shifts to the Revenue to prove that the same were bogus or fictitious. 4. Non-consideration of Judicial Precedents: consideration of Judicial Precedents: consideration of Judicial Precedents: The learned CIT(A) erred in not properly considering The learned CIT(A) erred in not properly The learned CIT(A) erred in not properly binding judicial precedents cited by the appellant, inter binding judicial precedents cited by the appellant, inter binding judicial precedents cited by the appellant, inter alia: ➤ CIT v. Jaora Flour & Foods (P) Ltd. CIT v. Jaora Flour & Foods (P) Ltd. CIT v. Jaora Flour & Foods (P) Ltd. \[2013] 33 taxmann.com 566 (MP HC). taxmann.com 566 (MP HC). ➤ITO v. Jethu Ram Prem Chand ITO v. Jethu Ram Prem Chand \[2001] 114 Taxman [2001] 114 Taxman 219 (Del) Bansal Rice Mills v. ITO [2001] 78 ITD 326 219 (Del) Bansal Rice Mills v. ITO [2001] 78 ITD 326 219 (Del) Bansal Rice Mills v. ITO [2001] 78 ITD 326 (Chd) (Chd). Case laws holding that recorded sales cannot be treated Case laws holding that recorded sales cannot be treated Case laws holding that recorded sales cannot be treated as unexplained cash credit. as unexplained cash credit. 4. Penalty Proceedings u/s 271(1)(c); 4. Penalty Proceedings u/s 271(1)(c); The learned CIT(A) erred in holding that the ground againsi The learned CIT(A) erred in holding that the ground againsi The learned CIT(A) erred in holding that the ground againsi initiation of penalty u/s 271(1)(c) was pointless, whereas initiation of penalty u/s 271(1)(c) was pointless, whereas initiation of penalty u/s 271(1)(c) was pointless, whereas the AO had wr the AO had wrongly initiated penalty despite full ongly initiated penalty despite full disclosure of sales and income. disclosure of sales and income. 6. Levy of Interest u/s 234B & 234C: 6. Levy of Interest u/s 234B & 234C: The learned CIT(A) erred in confirming levy of interest u/s The learned CIT(A) erred in confirming levy of interest u/s The learned CIT(A) erred in confirming levy of interest u/s 234B & 234C, without appreciating that the same is 234B & 234C, without appreciating that the same is 234B & 234C, without appreciating that the same is consequential and without prejudice to the deletion of consequential and without prejudice to consequential and without prejudice to addition made. addition made. 7. General Ground: 7. General Ground: The appellant craves leave to add, amend, alter, or The appellant craves leave to add, amend, alter, or The appellant craves leave to add, amend, alter, or withdraw any of the above grounds of appeal at the time withdraw any of the above grounds of appeal at the time withdraw any of the above grounds of appeal at the time of hearing.” of hearing.”

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2.1 Subsequently, information was received from the office of Subsequently, information was received from the office of Subsequently, information was received from the office of the Dy. Director of Income Tax (Invest the Dy. Director of Income Tax (Investigation), Unit igation), Unit-6(1), New Delhi regarding substantial cash transactions in the current Delhi regarding substantial cash transactions in the current Delhi regarding substantial cash transactions in the current bank account maintained by the assessee company. On the bank account maintained by the assessee company. On the bank account maintained by the assessee company. On the basis of the said information, reassessment proceedings under basis of the said information, reassessment proceedings under basis of the said information, reassessment proceedings under section 147 of the Act were initiated by issuance of section 147 of the Act were initiated by issuance of section 147 of the Act were initiated by issuance of notice under section 148 dated 31.03.2017, which was duly served under section 148 dated 31.03.2017, which was duly served under section 148 dated 31.03.2017, which was duly served upon the assessee. In response thereto, the assessee vide upon the assessee. In response thereto, the assessee vide upon the assessee. In response thereto, the assessee vide letter dated 28.04.2017 requested that the original return of letter dated 28.04.2017 requested that the original return of letter dated 28.04.2017 requested that the original return of income filed on 09.08.2010 be treated as return filed in income filed on 09.08.2010 be treated as return filed in income filed on 09.08.2010 be treated as return filed in compliance with the notice issued under section 148 of the th the notice issued under section 148 of the th the notice issued under section 148 of the Act. Thereafter, the reasons recorded for reopening were Act. Thereafter, the reasons recorded for reopening were Act. Thereafter, the reasons recorded for reopening were supplied supplied supplied to to to the the the assessee assessee assessee vide vide vide communication communication communication dated dated dated 20.07.2011. The objections raised by the assessee against the 20.07.2011. The objections raised by the assessee against the 20.07.2011. The objections raised by the assessee against the reopening vide letter dated 29.09.2011 ca reopening vide letter dated 29.09.2011 came to be disposed of me to be disposed of by the Assessing Officer through a speaking order dated by the Assessing Officer through a speaking order dated by the Assessing Officer through a speaking order dated 20.10.2017.

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2.2 During the course of reassessment proceedings, the Assessing During the course of reassessment proceedings, the Assessing During the course of reassessment proceedings, the Assessing Officer observed that the assessee had undertaken substantial cash Officer observed that the assessee had undertaken substantial cash Officer observed that the assessee had undertaken substantial cash transactions in its Current Account No. 015805006579 maintained transactions in its Current Account No. 015805006579 maintained transactions in its Current Account No. 015805006579 maintained with ICICI Bank Ltd. Upon examination of the details furnished, it with ICICI Bank Ltd. Upon examination of the details furnished, with ICICI Bank Ltd. Upon examination of the details furnished, was noticed that the retail invoices did not contain particulars of was noticed that the retail invoices did not contain particulars of was noticed that the retail invoices did not contain particulars of the purchasers such as names, addresses, PAN or TIN numbers. the purchasers such as names, addresses, PAN or TIN numbers. the purchasers such as names, addresses, PAN or TIN numbers. Various discrepancies, as elaborated in paragraph 4.3 of the Various discrepancies, as elaborated in paragraph 4.3 of the Various discrepancies, as elaborated in paragraph 4.3 of the assessment order, were pointed out by the Assessing Officer. Since assessment order, were pointed out by the Assessing Officer. Si assessment order, were pointed out by the Assessing Officer. Si the assessee failed to satisfactorily discharge the onus cast upon it the assessee failed to satisfactorily discharge the onus cast upon it the assessee failed to satisfactorily discharge the onus cast upon it to establish the genuineness of the cash sales and the source of to establish the genuineness of the cash sales and the source of to establish the genuineness of the cash sales and the source of cash deposits, the Assessing Officer treated an amount of cash deposits, the Assessing Officer treated an amount of cash deposits, the Assessing Officer treated an amount of ₹2,27,00,000/- credited in the books under the guise of cas credited in the books under the guise of cas credited in the books under the guise of cash sales as unexplained cash credit under section 68 of the Act. as unexplained cash credit under section 68 of the Act. as unexplained cash credit under section 68 of the Act.

2.3 Aggrieved by the assessment order, the assessee carried the Aggrieved by the assessment order, the assessee carried the Aggrieved by the assessment order, the assessee carried the matter in appeal before the learned CIT(A), who rejected both the matter in appeal before the learned CIT(A), who rejected both the matter in appeal before the learned CIT(A), who rejected both the challenge to the validity of reassessment proceedings as well as the challenge to the validity of reassessment proceedings as well challenge to the validity of reassessment proceedings as well additions made on merits. The assessee is, therefore, in further additions made on merits. The assessee is, therefore, in further additions made on merits. The assessee is, therefore, in further appeal before the Tribunal on the grounds reproduced hereinabove. appeal before the Tribunal on the grounds reproduced hereinabove. appeal before the Tribunal on the grounds reproduced hereinabove.

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the same are vital for proper adjudication of the controversy the same are vital for proper adjudication of the controversy the same are vital for proper adjudication of the controversy involved in the appeal. It was further submitted that the additional involved in the appeal. It was further submitted that the additional involved in the appeal. It was further submitted that the additional evidences go to the root of the matter and are necessary for evidences go to the root of the matter and are necessary for evidences go to the root of the matter and are necessary for establishing that the cash deposits were duly recorded in the establishing that the cash deposits were duly r establishing that the cash deposits were duly r regular books of account and duly reconciled with the VAT returns regular books of account and duly reconciled with the VAT returns regular books of account and duly reconciled with the VAT returns and cash sales ledger maintained by the assessee. and cash sales ledger maintained by the assessee. The relevant part The relevant part of the application is reproduced as under: lication is reproduced as under:

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The Appellant was under a bona fide belief that the The Appellant was under a bona fide belief that the The Appellant was under a bona fide belief that the whatever evidences regarding cash sales and cash whatever evidences regarding cash sales and cash whatever evidences regarding cash sales and cash deposited deposited deposited already already already submitted submitted submitted were were were sufficient sufficient sufficient to to to substantiate its claim; and/or substantiate its claim; and/or Certain docume Certain documents could not be collated and retrieved nts could not be collated and retrieved within the limited time provided during the appellate within the limited time provided during the appellate within the limited time provided during the appellate proceedings. proceedings. 5. That the additional evidence are directly relevant and crucial 5. That the additional evidence are directly relevant and crucial 5. That the additional evidence are directly relevant and crucial to the ground raised in the present appeal and go to the root of to the ground raised in the present appeal and go to the root of to the ground raised in the present appeal and go to the root of the matter. Non the matter. Non-admission of the same would cause serious mission of the same would cause serious prejudice to the appellant and may result in mischarge of prejudice to the appellant and may result in mischarge of prejudice to the appellant and may result in mischarge of justice. 6. That Rule 29 empowers this Hon’ble Tribunal to admit 6. That Rule 29 empowers this Hon’ble Tribunal to admit 6. That Rule 29 empowers this Hon’ble Tribunal to admit additional evidence if it is satisfied that such evidence is additional evidence if it is satisfied that such evidence is additional evidence if it is satisfied that such evidence is necessary to enable to pass orde necessary to enable to pass order or for any other substantial r or for any other substantial cause. The Hon’ble Tribunal, being the final fact cause. The Hon’ble Tribunal, being the final fact cause. The Hon’ble Tribunal, being the final fact-finding authority, is vested with wide discretionary powers to ensure authority, is vested with wide discretionary powers to ensure authority, is vested with wide discretionary powers to ensure that justice is not defeated on account of technicalities. that justice is not defeated on account of technicalities. that justice is not defeated on account of technicalities. 7. That the Appellant does not seek to fill up 7. That the Appellant does not seek to fill up any lacuna or to any lacuna or to set up a new case by filing the additional evidences. The set up a new case by filing the additional evidences. The set up a new case by filing the additional evidences. The evidences merely support and substantiate the material and evidences merely support and substantiate the material and evidences merely support and substantiate the material and crucial contention of allegation of unexplained cash deposit of crucial contention of allegation of unexplained cash deposit of crucial contention of allegation of unexplained cash deposit of Rs.2,27,00,000/ Rs.2,27,00,000/- in Banks already raised before the lower in Banks already raised before the lower authorities and reiterated in the grounds of appeal. authorities and reiterated in the grounds of appeal. authorities and reiterated in the grounds of appeal. 8. That the list of additional evidence sought to be admitted is 8. That the list of additional evidence sought to be admitted is 8. That the list of additional evidence sought to be admitted is as under:

Sl.No. PRATICULARS PRATICULARS OF OF RELEVANCE RELEVANCE ADDITIONAL EVIDENCE ADDITIONAL EVIDENCE 1 Certified bank statement Certified bank statement Relevant to show incorrect Relevant to show incorrect information passed on by information passed on by DDIT for cash deposited of DDIT for cash deposited of

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Rs.2,27,00,000/- in various Rs.2,27,00,000/ Banks of Appellant. Banks of Appellant. 2 VAT Returns VAT Returns Reconciliation Reconciliation of of sale sale including including cash cash with with VAT VAT return return to to show show duly duly accounted of cash sale in accounted of cash sale in books and copies of VAT books and copies of V return. 9. The Lt. AO completely failed to verify the information received 9. The Lt. AO completely failed to verify the information received 9. The Lt. AO completely failed to verify the information received from DDIT regarding cash deposited of Rs. 2,27,00,000/ from DDIT regarding cash deposited of Rs. 2,27,00,000/ from DDIT regarding cash deposited of Rs. 2,27,00,000/- deposit in bank account with the copy of bank statements of deposit in bank account with the copy of bank statements of deposit in bank account with the copy of bank statements of Axis Bank and ICICI Bank submitted during assessment Axis Bank and ICICI Bank submitted during assessment Axis Bank and ICICI Bank submitted during assessment proceeding whether information aggregate amount of cash ng whether information aggregate amount of cash ng whether information aggregate amount of cash deposited of Rs. 2,27,00,000/ deposited of Rs. 2,27,00,000/- in both the banks is correct. The in both the banks is correct. The actual cash deposited during the year under consideration was actual cash deposited during the year under consideration was actual cash deposited during the year under consideration was Rs. 12807800/ Rs. 12807800/-in the Current Account with Axis bank of in the Current Account with Axis bank of Rs.81,45,800/- and ICICI bank of Rs.46,62,00/ ank of Rs.46,62,00/- respectively. As per the detail submitted during the assessment proceedings, As per the detail submitted during the assessment proceedings, As per the detail submitted during the assessment proceedings, the appellant had stress on the fact that the cash sale was of the appellant had stress on the fact that the cash sale was of the appellant had stress on the fact that the cash sale was of Rs.1,28,50,436 including VAT(Net sales of Rs.1,23,24,149/ Rs.1,28,50,436 including VAT(Net sales of Rs.1,23,24,149/ Rs.1,28,50,436 including VAT(Net sales of Rs.1,23,24,149/- )and date wise and bill )and date wise and bill-wise cash sales book was submitted es book was submitted during proceedings reply dated on 21.12.2017 with the Ld. AO during proceedings reply dated on 21.12.2017 with the Ld. AO during proceedings reply dated on 21.12.2017 with the Ld. AO wherein the cash deposited in the both the bank accounts on wherein the cash deposited in the both the bank accounts on wherein the cash deposited in the both the bank accounts on various dates were also reflected on credit side of the cash various dates were also reflected on credit side of the cash various dates were also reflected on credit side of the cash sales ledger. (As per cash book attached). sales ledger. (As per cash book attached).

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copy of extract submitted during assessment proceeding as copy of extract submitted during assessment proceeding as copy of extract submitted during assessment proceeding as alleged by Ld. AO in assessment order. alleged by Ld. AO in assessment order. 12. Both the documents and 12. Both the documents and Information mentioned in point no. Information mentioned in point no.- 8 of this petition is just to further substantiate the major issue of 8 of this petition is just to further substantiate the major issue of 8 of this petition is just to further substantiate the major issue of appellant. grounds of appeal. appellant. grounds of appeal. 13. That the admission of the aforesaid evidences would not 13. That the admission of the aforesaid evidences would not 13. That the admission of the aforesaid evidences would not cause any prejudice to the Respondent Revenue, as adequate cause any prejudice to the Respondent Revenue, as adequate cause any prejudice to the Respondent Revenue, as adequate opportunity may be granted to verify and rebut the same, if so pportunity may be granted to verify and rebut the same, if so pportunity may be granted to verify and rebut the same, if so directed by this Hon'ble Tribunal.” directed by this Hon'ble Tribunal.” 4. We have heard the rival submissions and perused the material We have heard the rival submissions and perused the material We have heard the rival submissions and perused the material available on record. In so far as Ground No.1 challenging the available on record. In so far as Ground No.1 challenging the available on record. In so far as Ground No.1 challenging the validity of reassessment validity of reassessment proceedings is concerned, the learned proceedings is concerned, the learned counsel for the assessee fairly submitted that the said ground was counsel for the assessee fairly submitted that the said ground was counsel for the assessee fairly submitted that the said ground was not being pressed. Accordingly, Ground No.1 is dismissed as not not being pressed. Accordingly, Ground No.1 is dismissed as not not being pressed. Accordingly, Ground No.1 is dismissed as not pressed.

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5.1 Before us, the assessee now seeks to place on record various Before us, the assessee now seeks to place on record various Before us, the assessee now seeks to place on record various documents and prays for restoration of the matter to the file of the documents and prays for restoration of the matter to the file of the documents and prays for restoration of the matter to the file of the lower authorities. Prima facie, we find that the computer authorities. Prima facie, we find that the computer-generated authorities. Prima facie, we find that the computer sale invoices now produced do not inspire sufficient confidence so sale invoices now produced do not inspire sufficient confidence so sale invoices now produced do not inspire sufficient confidence so as to conclusively establish the genuineness of the business as to conclusively establish the genuineness of the business as to conclusively establish the genuineness of the business transactions. The assessee is stated to be dealing in mobile phones transactions. The assessee is stated to be dealing in mobile phone transactions. The assessee is stated to be dealing in mobile phone and accessories, which largely comprise imported goods. In such and accessories, which largely comprise imported goods. In such and accessories, which largely comprise imported goods. In such circumstances, the burden squarely lies upon the assessee to circumstances, the burden squarely lies upon the assessee to circumstances, the burden squarely lies upon the assessee to correlate the purchase transactions with the corresponding import correlate the purchase transactions with the corresponding import correlate the purchase transactions with the corresponding import documents and supporting evidences. However, the assessee has documents and supporting evidences. However, the assessee has documents and supporting evidences. However, the assessee has merely disclosed purchases from two or three parties and no erely disclosed purchases from two or three parties and no erely disclosed purchases from two or three parties and no satisfactory explanation has been furnished regarding the import of satisfactory explanation has been furnished regarding the import of satisfactory explanation has been furnished regarding the import of such goods or the place and manner of their storage. such goods or the place and manner of their storage. such goods or the place and manner of their storage.

5.2 We further notice certain peculiar features emerging from the We further notice certain peculiar features emerging from the We further notice certain peculiar features emerging from the record. Though the trading activities are stated to have been carried ough the trading activities are stated to have been carried ough the trading activities are stated to have been carried out from Delhi, the return of income has been filed at Mumbai from out from Delhi, the return of income has been filed at Mumbai from out from Delhi, the return of income has been filed at Mumbai from a residential address. Moreover, considering the nature and volume a residential address. Moreover, considering the nature and volume a residential address. Moreover, considering the nature and volume of goods involved, namely mobile phones and accessories, the of goods involved, namely mobile phones and accessories, the of goods involved, namely mobile phones and accessories, the transactions appear more in the nature of bulk trading rather than ransactions appear more in the nature of bulk trading rather than ransactions appear more in the nature of bulk trading rather than retail sales. In such a situation, it becomes difficult to comprehend retail sales. In such a situation, it becomes difficult to comprehend retail sales. In such a situation, it becomes difficult to comprehend how the purchasers could have claimed VAT credit without how the purchasers could have claimed VAT credit without how the purchasers could have claimed VAT credit without furnishing requisite particulars such as PAN or VAT registration furnishing requisite particulars such as PAN or VAT registratio furnishing requisite particulars such as PAN or VAT registratio numbers to the assessee, which ordinarily forms part of regular numbers to the assessee, which ordinarily forms part of regular numbers to the assessee, which ordinarily forms part of regular trade practice in such transactions. trade practice in such transactions.

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5.3 In our considered view, the matter requires a comprehensive In our considered view, the matter requires a comprehensive In our considered view, the matter requires a comprehensive verification, particularly with regard to the cash book, vouchers and verification, particularly with regard to the cash book, vouchers and verification, particularly with regard to the cash book, vouchers and books of account allegedly maintained on computer software. The legedly maintained on computer software. The legedly maintained on computer software. The assessee shall, therefore, be required to produce the computer assessee shall, therefore, be required to produce the computer assessee shall, therefore, be required to produce the computer hardware and relevant electronic records on which the books of hardware and relevant electronic records on which the books of hardware and relevant electronic records on which the books of account were prepared so as to facilitate proper forensic account were prepared so as to facilitate proper forensic account were prepared so as to facilitate proper forensic examination, if considered examination, if considered necessary by the Assessing Officer. The necessary by the Assessing Officer. The Assessing Officer shall also verify from the statutory auditors Assessing Officer shall also verify from the statutory auditors Assessing Officer shall also verify from the statutory auditors whether the books of account and supporting vouchers were whether the books of account and supporting vouchers were whether the books of account and supporting vouchers were maintained contemporaneously and in the ordinary course of maintained contemporaneously and in the ordinary course of maintained contemporaneously and in the ordinary course of business. 5.4 Having regard to the Having regard to the entirety of the facts and circumstances of entirety of the facts and circumstances of the case, and considering the application filed by the assessee the case, and considering the application filed by the assessee the case, and considering the application filed by the assessee under Rule 29 of the Income under Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963 tax (Appellate Tribunal) Rules, 1963 for admission of additional evidences, we are of the considered for admission of additional evidences, we are of the considered for admission of additional evidences, we are of the considered opinion that the interest of substantial justice would be met if the erest of substantial justice would be met if the erest of substantial justice would be met if the impugned order of the learned CIT(A) is set aside and the matter impugned order of the learned CIT(A) is set aside and the matter impugned order of the learned CIT(A) is set aside and the matter restored to the file of the Assessing Officer for fresh adjudication restored to the file of the Assessing Officer for fresh adjudication restored to the file of the Assessing Officer for fresh adjudication after proper examination and verification of the additional evidences after proper examination and verification of the additional evidences after proper examination and verification of the additional evidences in the light of the observations made hereinabove. the light of the observations made hereinabove. 5.5 Accordingly, Ground Nos.2 to 4 are allowed for statistical Accordingly, Ground Nos.2 to 4 are allowed for statistical Accordingly, Ground Nos.2 to 4 are allowed for statistical purposes. Ground No.5, relating to initiation of penalty proceedings purposes. Ground No.5, relating to initiation of penalty proceedings purposes. Ground No.5, relating to initiation of penalty proceedings under section 271(1)(c), being premature at this stage, is dismissed. under section 271(1)(c), being premature at this stage, is dismissed. under section 271(1)(c), being premature at this stage, is dismissed. Ground No.6 relating to levy of interest under sections 234B and d No.6 relating to levy of interest under sections 234B and d No.6 relating to levy of interest under sections 234B and

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234C is consequential in nature and does not call for separate 234C is consequential in nature and does not call for separate 234C is consequential in nature and does not call for separate adjudication at this stage. Ground No.1 already stands dismissed adjudication at this stage. Ground No.1 already stands dismissed adjudication at this stage. Ground No.1 already stands dismissed as not pressed.

Order pronounced in the open Court on 22 ounced in the open Court on 22/05/2026. /05/2026.

Sd/- Sd/- (ANIKESH BANERJEE ANIKESH BANERJEE) (OM PRAKASH KANT OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 22/05/2026 M. Ranganath Vittal, Sr. P.S.

Copy of the Order forwarded to Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, BY ORDER, //True Copy// (Assistant Registrar) (Assistant Registrar) ITAT, Mumbai ITAT, Mumbai