M/S. MUKTI CONSTRUCTION ,MUMBAI vs. DCIT, CENTRAL CIRLCLE 6(4), MUMBAI

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ITA 1496/MUM/2026Status: DisposedITAT Mumbai30 April 2026AY 2023-243 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s order and restored the matter for fresh adjudication. The assessee was granted one more opportunity to present its case before the CIT(A).

What were the facts?

The Assessing Officer brought to tax Rs. 4,08,71,000/- as unexplained credit and disallowed Rs. 80,21,190/- in expenditure. The CIT(A) dismissed the assessee's appeal for non-prosecution without deciding on merits.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal for non-prosecution without deciding on merits, and if the assessee should be granted another opportunity.

Which sections of the Income-tax Act were involved?

Section 69A,Section 40(a)(ia),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI “E” BENCH : MUMBAI

Before: SHRI VIKRAM SINGH YADAV & SHRI SANDEEP SINGH KARHAIL

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “E” BENCH : MUMBAI

BEFORE SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER

ITA No. 1496/Mum/2026 Assessment Year : 2023-24 M/s. Mukti Construction, DCIT, Central Circle-6(4), A/105, Utsav Plaza, 453, 4th Floor, Building No. 7, vs. Kautilya Bhavan, Madhuban Township CHS, C-41 to C-43, G Block, Vasai (E), BKC, Bandra East, Maharashtra-401208. Mumbai-400051. PAN : ABMFM6718N (Appellant) (Respondent) For Assessee : Shri Hitesh Jain For Revenue : Shri Hemanshu Joshi, Sr.DR Date of Hearing : 29-04-2026 Date of Pronouncement : 30-04-2026 O R D E R PER VIKRAM SINGH YADAV, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)-54, Mumbai [„Ld.CIT(A)‟], dated 15-12-2025, pertaining to Assessment Year (AY) 2023-24.

2.

Briefly, the facts of the case are that the assessment in this case was completed u/s. 143(3) of the Income Tax Act, 1961 („the Act‟), vide order dt. 27-02-2025, wherein the AO has brought to tax an amount of Rs. 4,08,71,000/- as un-explained credit u/s. 69A of the Act towards accommodation entries and an amount of Rs. 80,21,190/- by way of

2 ITA No. 1496/Mum/2026

disallowance of expenditure u/s. 40(a)(ia) of the Act and the assessed income was determined at Rs. 5,28,96,990/- as against the returned income of Rs. 40,04,800/-. The assessee thereafter carried the matter in appeal before the Ld.CIT(A), who has since dismissed the appeal of the assessee and against the said order, the assessee is in appeal before us.

3.

During the course of hearing, the Ld.AR submitted that the Ld.CIT(A) has dismissed the appeal on account of non-prosecution and without deciding the same on merits of the case. It was submitted that admittedly notices were issued during the course of appellate proceedings and the assessee did sought adjournment, however, the Ld.CIT(A) has gone ahead and passed the order, dismissing the appeal of the assessee. It was submitted that there were multiple appeals which were filed by the assessee‟s group and given the complexity involved, the assessee sought time which was denied by the Ld.CIT(A). It was submitted that the assessee be allowed one more opportunity and the matter may be remanded to the file of the Ld.CIT(A) to adjudicate the same afresh.

4.

The Ld.DR has been heard who has submitted that multiple opportunities were provided to the assessee inspite of that, the assessee has not made any substantial compliance except seeking adjournments. At the same time, it was fairly submitted that given that there is no finding on merits of the case, the Revenue has no objection where the matter is remanded to the file of the Ld.CIT(A).

5.

We have heard the rival contentions and perused the material available on record. As evident from records, it is clear that the Ld.CIT(A) dismissed the appeal of the assessee on account of non-prosecution and there is no finding on merits of the case and in view of the limited prayer raised by the Ld.AR on behalf of the assessee, we are of the considered

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opinion that in the interest of justice, the assessee should be granted one more opportunity to represent its case diligently before the Ld.CIT(A). Consequently, we deem it fit and proper to set aside the impugned order and restore the matter to the file of the Ld.CIT(A) for deciding the same afresh as per law, after providing reasonable opportunity to the assessee. We also direct the assessee to fully co-operate with the Ld.CIT(A) for expeditious disposal of the matter and is at liberty to file necessary explanation/ documentation as so advised.

6.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 30-04-2026

Sd/- Sd/- [SANDEEP SINGH KARHAIL] [VIKRAM SINGH YADAV] JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 30-04-2026 TNMM

Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, ITAT, Mumbai 5) Guard file

By Order

Dy./Asst. Registrar I.T.A.T, Mumbai

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