P.K INTERNATIONAL EXPORTS LIMITED ,MUMBAI vs. ITO CIRCLE 2(3)(1), 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.1450/Mum/2026 (Assessment year: 2011-12)

P.K. International Exports Ltd. vs ITO Ward 2(3)(1), Mumbai Unit No.10, Y.A Chunawala 552, 5TH Floor, AayakarBhavan, Industrial, Kondivita Lane, Maharishi Karve Road, Mumbai- Andheri East Mumbai-400059 400020 PAN:AAECP0793N APPELLANT RESPONDENT Assessee by : Shri Haridash Bhat Revenue by : Shri R.A. Dhyani-CIT DR & Shri V.S. Mahajan (Sr.DR) Date of hearing : 04/05/2026 Date of pronouncement : 06/05/2026 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 2011-12, date of order 12.12.2025. The impugned order emanated from the order of the Ld. Deputy Commissioner of Income Tax Officer-10(3)(2), Mumbai (for brevity the ‘Ld. AO’)

2 ITA No.1450/Mum/2026 P.K. International Exports Limited order passed under section 143(3) r.w.s. 147 and 142(2A) of the Act date of order 27.08.2015. 2. The brief facts of the case are that the assessee filed its return of income declaring total income of Rs. 1,39,88,712/-, which was processed under section 143(1) of the Act accepting the returned income. Subsequently, the Ld. AO, on the basis of information received from the Sales Tax Department (Investigation Wing), Mumbai, invoked the provisions of section 147 and issued notice under section 148 of the Act. The assessment was thereafter completed by making additions aggregating to Rs. 2,50,92,076/-, comprising (i) addition of Rs. 19,188/- on account of alleged bogus purchases, (ii) reduction of closing stock amounting to Rs. 85,10,000/-, (iii) addition on account of purchases and labour charges amounting to Rs. 1,43,52,928/-, and (iv) addition on account of alleged suppression of sales amounting to Rs. 22,09,960/-. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). During the appellate proceedings, the Ld. CIT(A) called for a remand report from the Ld. AO, which was submitted on 11.10.2018. In response thereto, the assessee filed its rejoinder dated 31.10.2018. Subsequently, the Ld. CIT(A) issued a notice dated 09.09.2019 seeking further clarification in respect of the remand report. The assessee, vide letter dated 30.09.2019, informed the Ld. CIT(A) regarding the pendency of remand proceedings. Thereafter, the Ld. CIT(A) issued further notices on two occasions, which remained uncomplied with. Ultimately, the Ld. CIT(A)

3 ITA No.1450/Mum/2026 P.K. International Exports Limited passed an ex parte order upholding the impugned assessment order. Being aggrieved, the assessee is in appeal before us. 3. The Ld. AR argued and filed a paper book which comprising page 1 to 29 which has been placed on record. The Ld. AR invited our attention in impugned appellate order para no.1.2 where the Ld. CIT(A) issued the notice u/sec. 250 of the Act in different occasions. The details are as follows: “1.2 Notice u/s 250 of the Act was issued for furnishing submission on the following dates: Notice u/s Date of issue Date of Compliance Remarks 250 01.08.2019 07.08.2019 No Reply 250 30.08.2019 09.09.2019 No Reply 250 24.12.2020 08.01.2021 No Reply 250 27.11.2025 05.12.2025 No Reply

4 ITA No.1450/Mum/2026 P.K. International Exports Limited notices were issued on 24.12.2020 and 27.11.2025 which remained uncomplied. The Ld. AR argued that without accepting the report from the Ld. AO related to clarification of remand report the impugned appellate order was passed exparte. So, the impugned appellate order was passed without taking cognizance of the assessee’s submission and the clarification of remand report from the Ld. AO. 5. The Ld. DR argued and relied on the order of revenue authorities. 6. We have heard the rival submissions and perused the material available on record. It is observed that during the appellate proceedings, the Ld. CIT(A) had called for a remand report from the Ld. AO, which was duly submitted on 11.10.2018. The assessee also filed its rejoinder dated 31.10.2018 in response thereto. Thereafter, the Ld. CIT(A) issued a notice dated 09.09.2019 seeking further clarification, to which the assessee responded vide letter dated 30.09.2019, requesting for fixation of hearing. However, it appears that the subsequent notices issued by the Ld. CIT(A) remained uncomplied with, and the impugned appellate order came to be passed ex parte, without adequately considering the remand report of the Ld. AO and the rejoinder filed by the assessee. In our considered view, when a remand report has been called for and the assessee has also filed its detailed submissions in response thereto, the same ought to have been duly considered before adjudicating the appeal. The failure to take cognizance of such material amounts to violation of the principles of natural justice. Accordingly, in the interest of justice, we set aside the impugned appellate order and restore the matter to the file of the Ld. CIT(A) for fresh adjudication. The Ld. CIT(A) is directed to pass a speaking order after duly considering the remand report of the Ld. AO as well as the submissions of the assessee and after

5 ITA No.1450/Mum/2026 P.K. International Exports Limited affording reasonable opportunity of being heard to the assessee. Needless to say, we have not expressed any opinion on the merits of the case, and all issues are left open for adjudication. 7. In the result, the appeal of the assessee bearing ITA No.1450/Mum/2026 is allowed for statistical purpose. Order pronounced in the open court on 06th day of May 2026. Sd/- Sd/- (MAKARAND VASANT MAHADEOKAR) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,िदनांक/Dated: 06/05/2026 SAUMYASr.PS Copy of the Order forwarded to: 1. अपीलाथ�/The Appellant , 2. �ितवादी/ The Respondent. 3. आयकरआयु� CIT 4. िवभागीय�ितिनिध, आय.अपी.अिध., मुंबई/DR, ITAT, Mumbai 5. गाड�फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, MUMBAI