CHEMBUR CAMP DUDH VITARAK SAHAKARI SANSTHA LIMITED,MUMBAI vs. INCOME TAX OFFICER, WARD 27(1)(1), NAVI MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI BEFORE SHRI ANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER ITA No.1454/Mum/2026 (Assessment year: 2018-19) ITA No.1455/Mum/2026 (Assessment year: 2018-19) ITA No.1456/Mum/2026 (Assessment year: 2018-19) ITA No.1457/Mum/2026 (Assessment year: 2018-19)

Chembur Camp Dudh Vitarak vs ITO Ward 27(1)(1), Mumbai Sahakari Sanstha Ltd. IT-Office, Vashi Railway Station 28, Gaondevi Co-Op. Housing Building, Navi Mumbai-400703 Society, Near Municipal School, Vadavali Village Chembur Mumbai-400074 PAN: AAAAC2580L APPELLANT RESPONDENT Assessee by : Shri Dharan Gandhi a/w Ms. Aanchal Vyas & Ms. Vinita Nara Revenue by : Shri R.A. Dhyani-CIT DR & Shri V.S. Mahajan (Sr.DR) Date of hearing : 05/05/2026 Date of pronouncement : 07/05/2026 O R D E R Per Bench: A bunch of appeal of the same assessee filed against the order of the NFAC, Delhi [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for Assessment Year 2018-19, date of orders 09.12.2024 & 17.12.2024, The impugned orders emanated from the orders of the

2 ITA No.1454 to 1457/Mum/2026 Chembur Camp Dudh Vitarak Sahakari Sanstha Assessment Unit Income tax Department (for brevity the ‘Ld. AO’) order passed under section 147 r.w.s. 144 r.w.s. 144B of the Act date of order 15.03.2023, order passed u/sec 271AAC(1), u/sec 270A & u/sec 272A(1)(d) of the Act date of orders 18.09.2023, 15.09.2023 & 12.09.2023 respectively. 2. All the appeals are filed with a delay for 340 days. The secretary of the assessee, Mr. Bharat V. Masurkar has filed a notarized affidavit duly executed on 05/02/2026 and explain the delay for filing appeal before the ITAT. The Ld. DR had made objection related to explanation filed by the assessee for delay in filing return. The relevant part of the affidavit of the assessee is reproduced as below: “1. Ours is a co-operative society formed for the distribution of milk in Chembur (Mumbai) area. The committee members are from lower middle class having average education. 2. Assessment was completed u/s 147 r.w.s.144 on 15/03/2023. 3. Appeal against the order was filed on 12/10/2023 with application for condonation of delay. 4. The appeal work and subsequent work was assigned to Sutaria Associates, Chartered Accountants, Ghatkoper, Mumbai. The mobile number 9702223330 and email: financesabnj@gmail.com mentioned on Form 35 were of earlier accountant, Mr. Amit Chavan. 5. All the notices for hearing before CIT(A) were sent on above email which were not shared with us. 6. We were under bonafide belief that the proceedings were looked after by the CA firm. However, on receipt of notice for recovery dt.24/12/2025, we came to know about the fact that no response was filed to any of the notices received from NFAC, Delhi.” Considering above we consider the assessee’s submission & condone the delay for filing appeal. All the appeals are taken for adjudication.

3 ITA No.1454 to 1457/Mum/2026 Chembur Camp Dudh Vitarak Sahakari Sanstha together, heard together and disposed of by a common order. Assessee challenged the quantum appeal bearing ITA No.1454/Mum/2026 and related to the appeals ITA No. 1455 and 1457/Mum/2026 for the consequential penalties levied u/sec 271AAC(1) & u/sec. 270A respectively. ITA No.1454/Mum/2026 is taken as lead case and the decision rendered there in shall be applied mutatis mutandis to the appeals ITA No.1455/Mum/2026 and 1457/Mum/2026.

ITA 1454/Mum/2026 4. The assessment was completed u/sec. 147 read with section 144 of the Act by computing the total income amount of Rs.3,75,51,120/- with additions amount to Rs.3,75,23,373/- & Rs.27,751/-. The assessee challenged the impugned assessment order before the Ld. CIT(A) with a delay for filing appeal. But the Ld. CIT(A) condoned the delay and passed an exparte order by upholding the impugned assessment order. Being aggrieved assessee filed an appeal before us.

4 ITA No.1454 to 1457/Mum/2026 Chembur Camp Dudh Vitarak Sahakari Sanstha filing of the appeal. I request your honour to condone the delay and admit my appeal in the interest of natural justice." After examining the facts, I find the reason provided by the appellant is genuine and therefore, the delay in filing appeal is condoned.” The impugned appellate order was ultimately passed ex parte due to non- prosecution. The Ld. AR submitted that the assessee had duly explained, by way of an affidavit, the reasons for non-compliance with the notices issued by the Ld. CIT(A). It was contended that the assessee had placed complete reliance on its firm of Chartered Accountants, and the relevant communications/notices were not duly conveyed to the assessee. In view of the above circumstances, the Ld. AR prayed that the matter be restored to the file of the Ld. CIT(A) for adjudication de novo in respect of the quantum appeal as well as the penalties levied under sections 271AAC(1) and 270A of the Act.

5 ITA No.1454 to 1457/Mum/2026 Chembur Camp Dudh Vitarak Sahakari Sanstha proceedings. The explanation furnished by the assessee, in our considered view, constitutes a reasonable cause for non-compliance. In the interest of substantial justice and in order to provide one more opportunity to the assessee to present its case, we deem it appropriate to set aside the impugned appellate order and restore the matter to the file of the Ld. CIT(A) for fresh adjudication de novo on merits in accordance with law. The Ld. CIT(A) shall afford reasonable opportunity of being heard to the assessee and decide the issues afresh, without being influenced by the earlier ex parte order. We are not expressing any view on merit of the case as the set aside appeal proceeding is remained uninfluenced. Since the penalty appeals under sections 271AAC(1) and 270A of the Act are consequential to the quantum proceedings, the same are also set aside and restored to the file of the Ld. CIT(A) to be adjudicated afresh in line with the outcome of the quantum appeal. So, all three appeals of the assessee are allowed for statistical purposes.

ITA No. 1456/Mum/2026 8. The Ld. AR contended that the assessee is an AOP and is carrying on the business of supplying milk of Aarey and Amul to various Booth located in the local area of Chembur. The assessee has not filed the Return of Income for A.Y. 2018- 19. Reassessment Proceedings were initiated by issuing notice u/s 148 r.w.s 147 of the Income Tax Act, 1961. Subsequently, notice u/s 142(1) was issued to file the relevant details. However, the notices issued were received on the email of the officer bearer, who had died at the time of Scrutiny proceedings. Hence, the assessee was unaware of any scrutiny proceedings going on. The assessee came to know only the demand notice was send to the assessee. Therefore, the said

6 ITA No.1454 to 1457/Mum/2026 Chembur Camp Dudh Vitarak Sahakari Sanstha order was passed under u/s 144. Hence, the assessee came to know when the order was collected from the assessing officer. The Ld. AO initiated the penalty proceeding u/sec. 272A(1)(d) of the Act non-cooperation and lack of representativeness in the assessment proceeding by the assessee. So, the penalty amount of Rs.20,000/- was duly levied. The assessee preferred an appeal before the Ld. CIT(A) by challenging the order of the Ld. AO. But Ld. CIT(A) had considered that there is a justification in impugned assessment order where there is a lack of representativeness and cooperation from the end of the assessee. On the other hand, the Ld. AR narrated the fact and stated that due to the death of the Accountant the assessee was unable to take part in the assessment proceeding.

7 ITA No.1454 to 1457/Mum/2026 Chembur Camp Dudh Vitarak Sahakari Sanstha levied under section 272A(1)(d) of the Act. So, the appeal of the assessee is allowed.