KGR ENTERPRISES PRIVATE LIMITED,MUMBAI vs. DCIT - CC 6(1), MUMBAI

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ITA 3130/MUM/2026Status: DisposedITAT Mumbai23 June 2026AY 2019-203 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the ex parte order of the CIT(A) and restored the matter for fresh adjudication. The CIT(A) was directed to decide the appeal on merits after providing a due and effective opportunity of hearing to the assessee.

What were the facts?

The assessee's appeals were disposed of by the CIT(A) without effective representation due to bona fide reasons. The assessee claimed to have been deprived of an adequate opportunity to present its case.

What were the issues?

Whether the CIT(A) erred in disposing of the appeals ex parte without affording the assessee an adequate opportunity of hearing.

Which sections of the Income-tax Act were involved?

Section 271AAB,Section 271AAC(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH MUMBAI

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

Hearing: 17.06.2026Pronounced: 23.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA Nos. 3130 and 3131/MUM/2026 Assessment Year: 2019-20 KGR Enterprises Pvt. Ltd., Deputy Commissioner of 401-405, Corporate Centre, Income Tax, CC -6(1), Mumbai Nirmal Lifestyle, LBS Marg, Mulund (W), Vs. Mumbai – 400080 Maharashtra (PAN : AAFCK1308M) (Appellant) (Respondent) Present for: Assessee : Ms. Jigna Jain, CA Revenue : Smt. Amrita Singh, CIT DR Date of Hearing : 17.06.2026 Date of Pronouncement : 23.06.2026 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: These two appeals filed by the assessee are against the orders of Ld. CIT(A)-54, Mumbai vide order nos. ITBA/APL/S/250/2025- 26/1087291384(1) and ITBA/APL/S/250/2025-26/1087291475(1) dated 12.03.2026, passed against the penalty orders by CC-6(1), Mumbai, u/s. 271AAB and 271AAC(1) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 06.03.2025 and 25.02.2025 respectively, for Assessment Year 2019-20.

2.

The primary grievance raised before us is that the appeals have been disposed of without effective representation on behalf of the

2 ITA Nos. 3130 and 3131/Mum/2026 KGR Enterprises Pvt. Ltd., AY 2019-20

assessee. It has been submitted that due to bona fide and genuine reasons, the assessee could not properly respond to the notices issued during the course of the appellate proceedings and, consequently, was deprived of an adequate opportunity of presenting its case before the learned CIT(A). It has, therefore, been pleaded that in the interest of substantial justice, the matter may be restored to the file of the learned CIT(A) for fresh adjudication on merits after affording due and effective opportunity of hearing.

3.

The learned Departmental Representative fairly submitted that she would have no serious objection if the matter is restored to the file of the learned CIT(A) for fresh consideration.

4.

Having considered the rival submissions and the material placed on record, we are of the opinion that the ends of justice would be met if the impugned ex parte order is set aside and the matter is restored to the file of the learned CIT(A) for adjudication afresh in accordance with law. Accordingly, the impugned order of the learned CIT(A) is set aside and the matter is restored to his file with a direction to decide the appeal afresh on merits and in accordance with law after affording due and effective opportunity of hearing to the assessee. The assessee is also directed to extend full cooperation in the appellate proceedings. Since the appeal pertains to an old assessment year and has already remained pending for a considerable period, and further the matter is being restored on account of the bona fide reasons explained by the assessee without adjudication on merits, we deem it appropriate to observe that the learned CIT(A) shall endeavour to dispose of the appeal as expeditiously as possible in accordance with law. We make it clear that

3 ITA Nos. 3130 and 3131/Mum/2026 KGR Enterprises Pvt. Ltd., AY 2019-20

we have not expressed any opinion on the merits of the issues involved and all contentions are left open.

5.

In the result, both the appeals are allowed for statistical purposes.

Order is pronounced in the open court on 23 June, 2026

Sd/- Sd/- (Amit Shukla) (Girish Agrawal) Judicial Member (Accountant Member) Dated: 23 June, 2026 MP, Sr.P.S. Copy to : 1 The Appellant 2 The Respondent 3 DR, ITAT, Mumbai 4 Guard File 5 CIT BY ORDER,

(Dy./Asstt.Registrar) ITAT, Mumbai

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