What did the Tribunal hold?

The Tribunal set aside the ex parte order of the CIT(A) and restored the matter to the file of the Assessing Officer for fresh assessment. The Tribunal emphasized that the disallowances needed verification and directed an effective opportunity of hearing for the assessee.

The assessee's first appeal was disposed of ex parte by the CIT(A) due to the assessee's inability to respond effectively to notices. The assessee claimed this was due to bona fide reasons and sought a fresh adjudication.

What were the issues?

Whether the CIT(A) erred in disposing of the appeal ex parte without providing an effective opportunity of hearing to the assessee. The need for verification of disallowed expenses.

Omkar Satam Welfare Trust vs ITO | ITAT Mumbai 2026

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 No. 4172/MUM/2026 Assessment Years: 2023-24 Omkar Satam Welfare Trust Income Tax Officer Exemption, A-9, Ashirwad Society, Ward – 2(2), Mumbai New Shyam Nagar, Jogeshwari (E), Vs. Mumbai – 400 060 Maharashtra (PAN : AAATO7093H) (Assessee) (Respondent) Present for: Assessee : Shri Ketan Butala, CA Revenue : Smt. Sujatha Iyyanger, Sr. DR Date of Hearing : 17.06.2026 Date of Pronouncement : 23.06.2026 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal is filed by the assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi vide No. ITBA/NFAC/S/250/2025-26/1085781975(1) dated 09.02.2026 passed against the assessment order by the NFAC of the Income-tax Department u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 29.01.2025 for the Assessment Year 2023-24.

The primary grievance raised before us is that the first appeal has been disposed of without effective representation on behalf of the assessee. It has been submitted that due to bona fide and genuine

2 ITA No. 4172/Mum/2026 Omkar Satam Welfare Trust Assessment Year 2023-24

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.

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 Assessing Officer for assessment afresh in accordance with law. In the present case, the expenses which have been disallowed needs to be verified and therefore essentially requires indulgence of the ld. Assessing Officer, hence, we find it appropriate to remit the matter back to the file of ld. Assessing Officer.

Accordingly, the impugned order of the learned CIT(A) is set aside and the matter is restored to the file of ld. Assessing Officer file with a direction to decide the issues afresh 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 assessment 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 Assessing Officer shall endeavour to dispose of the matter as expeditiously as possible in accordance with law. We

3 ITA No. 4172/Mum/2026 Omkar Satam Welfare Trust Assessment Year 2023-24

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

In the result, the appeal is 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 assessee 2 The Respondent 3 DR, ITAT, Mumbai 4 Guard File 5 CIT BY ORDER,

(Dy./Asstt.Registrar) ITAT, Mumbai

OMKAR SATAM WELFARE TRUST,MUMBAI vs. ITO EXEMPTION WARD 2(2), MUMBAI, MUMBAI

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