PALIWAL MILK PRODUCTS PRIVATE LIMITED,MUMBAI vs. INCOME TAX OFFICER-WARD 14(2)(1), MUMBAI, MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI BEFORE SHRIANIKESH BANERJEE, JUDICIAL MEMBER AND SHRI MAKARAND VASANT MAHADEOKAR, ACCOUNTANT MEMBER ITA No.9135/Mum/2025 (Assessment year: 2017-18)

Paliwal Milk Products Pvt. vs ITO Ward-14(2)(1), Mumbai Ltd. Aayakar Bhawan, Mumbai-400020 Shop No.1 and 2 Uday Darshan, Nehru Road, Santacruz East, Mumbai- 400055 PAN: AAGCP5179G APPELLANT RESPONDENT Assessee by : Ms. Khushali Desai Revenue by : Shri V.S. Mahajan (Sr. DR)

Date of hearing : 14/05/2026 Date of pronouncement : 20/05/2026 O R D E R Per:Anikesh Banerjee (JM): The instant appeal of the 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 2017-18, date of order 06.10.2025. The impugned order emanated from the order of the Ld. Income Tax

2 ITA No.9135/Mum/2025 Paliwal Milk Products Pvt. Ltd. Officer Ward-14(2)(4), Mumbai (for brevity the ‘Ld. AO’) order passed under section 143(3) of the Act date of order 28.12.2019. 2. The brief facts of the case are that the assessee filed the return by declaring total income 17,09,208/-. The assessee’s case was selected for scrutiny after conducting the survey u/sec. 133A dated 09.03.2017. During the scrutiny proceeding the Ld. AO found the unexplained cash credit amount of Rs.1,09,65,000/-. The Ld. AO had added back the amount u/sec. 69A of the Act. The aggrieved assessee filed an appeal before the Ld. CIT(A). The assessee has submitted the fact that the assessee paid Rs. 30lakh tax in PMGKY after due survey. But due to non compliance of the notice issued by the Ld. CIT(A) the appellate order was passed exparte by upholding the impugned assessment order. Being aggrieved assessee filed an appeal before us. 3. The Ld. AR argued and filed a written note related to explaining the reason for non-compliance of the notice before the Ld. CIT(A). The relevant paragraphs of the written note are reproduced as below: “In this regard, it is submitted that during the pendency of the appellate proceedings before the learned CIT(A), the employee of the assessee company who was handling the taxation and appellate compliance matters resigned from the services of the assessee company in the month of August 2025. Due to the sudden discontinuation of the said employee and the resultant internal administrative dislocation, the hearing notices issued by the office of the learned CIT(A) during September 2025 could not be properly attended to and remained inadvertently uncomplied with. The non-compliance was neither intentional nor deliberate, but occurred solely on account of the aforesaid bona fide circumstances beyond the control of the assessee. It is further submitted that the assessee had no intention whatsoever to delay or obstruct the appellate proceedings. The assessee has a substantial case on merits against the additions/disallowances made by the learned Assessing Officer in the assessment order, which are factually incorrect and legally unsustainable. However, owing to the aforesaid unavoidable circumstances, the assessee could not place the relevant facts, supporting evidences, and

3 ITA No.9135/Mum/2025 Paliwal Milk Products Pvt. Ltd. detailed submissions before the learned CIT(A), resulting in passing of the impugned ex-parte order. In these circumstances, and in the interest of substantial justice, it is most humbly prayed that the impugned order passed by the learned CIT(A) may kindly be set aside and the matter may be restored to the file of the learned CIT(A) for fresh adjudication. The assessee assures this Hon'ble Tribunal that it shall fully cooperate in the appellate proceedings and shall make timely and proper compliance before the learned CIT(A).”

4 ITA No.9135/Mum/2025 Paliwal Milk Products Pvt. Ltd. opportunity of being heard to the assessee. The assessee is also directed to cooperate and make due compliance without seeking unnecessary adjournments. We make it clear that we have not expressed any opinion on the merits of the additions made by the Ld. AO, and all issues are kept open for adjudication by the Ld. CIT(A). Accordingly, the grounds raised by the assessee are allowed for statistical purposes.