EMERGING MULTITADE PRIVATE LIMITED,MUMBAI vs. WARD 6(2)(4) , MUMBAI

PER OM PRAKASH KANT, AM

This appeal by the assessee is directed against order dated
11.04.2025 passed by the Ld. Commissioner of Income-tax
(Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld.
CIT(A)’] for assessment year 2014-15, raising following grounds:
1. Ground1. That the assessment order u/s 143(3) of the Income
Tax Act, 1961 ("the Act") dated 30.11.2016 passed by the Assessing
Officer ("AO") and the additions/disallowances made therein are illegal, bad in law and without juri iction.

Ground2-The confirming th total income
Rs.3226437/
Ground3-Tha have grossly without givin assessee to b principles of n
Ground4-Tha
CIT(A) has er order u/s 143
therein.
Ground5-Tha
The Learned holding the A making addit business & p in approach
5991122/-
Ground6-Tha
The Learned holding the A making addit to rules of re mind. amount
Ground7-All o and are mutu
2. We have heard the relevant material has proceeded to dis and upheld the disal the tune of ₹59,91,12
that multiple notic
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ITA No. 3564

CIT (A) NFAC has erred in law and e assessment order passed by the AO e of Rs.3063670/- as against retur
-.
t the Commissioner of Income Tax (Appe erred on facts and in law in passin ng a sufficient and reasonable oppor be heard. The orders have been passed natural justice.
t, on the facts and circumstances of rred in law and on facts in upholding th
3(3) of the Act and the additions/disallo t on the facts and circumstances of the commissioner of Income tax (Appeals)
Addition made by the Ld. Assessing o tion on account of business loss, unde rofession, which is contrary to rules of re and betrays a prejudiced mind. amo t on the facts and circumstances of the commissioner of Income tax (Appeals)
Addition made by the Ld. Assessing o tion on account of under section 50C whi easonableness in approach and betrays ting to Rs. 299010/- of the above grounds of appeal are with ually exclusive to each other.
rival submissions of the parti ls on record. It is noted that the spose of the appeal ex-parte qu llowance made by the Assessing
22/-, representing business loss ces issued during the cours trade Pvt. Ltd
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4/MUM/2025
d in facts in assessing the rned loss of eals) ("CIT(A)") ng the orders rtunity to the in violation of the case, the he assessment wances made case and law has erred up office erred in r the head of easonableness unting to Rs.
case and law has erred up office erred in ich is contrary s a prejudiced hout prejudice ies and perused e learned CIT(A) ua the assessee g Officer (AO) to s, on the ground se of appellate proceedings via e-m observation of the Ld
“5.0 Decision only ground
Rs. 59,91,12
5.1 The Ld.
the assessm the Act. The 5. On verifi assessee ha
Income Loss notice u/s 1
Sheet noting the details of dated 24.10
"Company h of specified i
5.2 Except f evidentiary d respect of opportunities purchase bi such sale or of evidence,
5.3 In orde opportunity was issued
28.10.2016
opportunity income Loss such loss be the in the ab granted tim anybody att fact no deta claim till the Emerging Multit
ITA No. 3564

mail were not complied with d. CIT(A) is reproduced as under n on grounds of appeal and reasons raised in the present appeal is agains
22/- on account of Business loss.
AO discussed the impugned addition ment order dated 30.11.2016 passed u relevant portion is reproduced as und ication of the details filed it is no as debited a sum of Rs. 59,91,122/
" under the head Cost of sales. The a 142(1) 17.10.2016 and subsequently g dated 28.10.2016, was specifically of "Other income Loss". The assessee v
.2016 submitted as under:- has incurred Losses of Rs. 59,91,122/
item of textiles goods.
for the above mentioned statement, n details have been filed. No details wh such trading was filed despit s been given to the assessee. No lls, no details of payment made or r purchase was brought on record. In the claim of the such loss is not admis er to follow law of natural justice was granted to the assessee and a to the assessee vide order sheet l whereby the assessee was gr to submit details/evidence in resp s. The AR was also asked to explain e not disallowed and added to the to bsence of the details/evidence. The a me upto 04.11.2016, but to no a tended nor any written submission w ails have been filed as desired in res date of this order.
trade Pvt. Ltd
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h. The relevant
:
thereof:- The st addition of n in Para-5 of u/s 143(3) of der:
ted that the /- as "Other assessee vide y vide order asked to file vide its letter
/- for trading no supporting at so ever, in te sufficient sale bill, no received for the absence ssible.
e, one more show cause ooting dated ranted final ect of Other n as to why tal income of assessee was avail, neither was filed. In spect of such “5.4 Section substantiate is made in th claim lies discharged a Loss" of Rs.
to the total
271(1)(c) is particulars of 5.2 I have ca of the case perusal of appellant ha
Income Loss of assessm opportunities and subsequ was specific
Loss". Howe evidences or bill, no purch for such sal
AO has disa of "Other inc
5.3 Primary claim made loss or expe submit the d during cour proceedings appellant ha substantiate respect of bu non co-opera and no subm course of ap appeal and r
5.4 Hence, i conclusion o absence of a Emerging Multit
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n 143(2) puts the first onus on the e its claims in its return of income i.e.
he return of income, the thus to subst with the assessee. This onus ha at all. Therefore, the claim of such "O
59,91,122/- is thus disallowed and income of the assessee. Penalty proc initiated separately for furnishing o of income.
arefully gone through the grounds of and assessment order passed by records and assessment order, it as miserably failed to submit the deta s" amounting to Rs. 59,91,122/- durin ment proceedings in spite of giv s. Assessee vide notice u/s 142(1) uently vide order Sheet noting dated cally asked to file the details of "O ever, appellant have not submitted an r details in respect of such trading l hase bills, no details of payment mad le or purchase was brought on recor allowed the claim of the appellant und ome Loss" and made the impugned ad onus lies with the assessee to sub in his statement of income in respect enses. As discussed above, appella details of "Other Income Loss" either b rse of assessment proceedings o in spite of getting several opportunitie as miserably failed to discharge th e its claim made in his statement o usiness loss. As mentioned above, ap ative all along the appellate proceed mission or any documents were filed ppellate proceedings to substantiate i rebut the finding of the AO.
in view of the elaborate discussion/a of the A.O. in the Assessment or any response received from the appell trade Pvt. Ltd
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assessee to if any claim tantiate such as not been Other income added back ceedings u/s of inaccurate appeal, facts the AO. On seems that ails of "Other ng the course ving various
17.10.2016
28.10.2016,
Other income ny supporting loss. No sale de or received rd. Therefore, der the head ddition.
bstantiate its t of business ant failed to before the AO or appellate es. Therefore, he onus and of income in ppellant was dings as well d during the its ground of analysis and rder, and in ant, I find no reason to int of Rs. 59,9
Thus, Groun
2.1 However, befor submitted that the a the financial year 20
35—meant for prov assessee had indicat the learned CIT(A) vi assessee and, therefo
2.2 In view of the ex the non-receipt of no it appropriate to set and restore the ma affording due opportu to ensure strict com prescribed under the of notices issued thro of the appeal of the a 2.3 Since we have a CIT(A) for deciding a rendered academic a and same are dismiss
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terfere in the finding of the A.O. Thus,
1,122/- on account of Business los nd of appeal on this issue is dismisse e us, the learned counsel fo appeal had been filed in physic
17–18, and in the relevant colu viding e-mail details for comm ted “No”. Consequently, the no ia e-mail did not come to the k ore, could not be complied with.
xplanation furnished by the ass tices, and in the interest of just aside the order passed by the atter to his file for adjudicatio unity to the assessee. The asse mpliance with the modalities of Faceless Appeal Scheme, inclu ough the Income Tax Portal. Th assessee is accordingly allowed.
already restored the appeal to th afresh, the other grounds raise and we are not required to be a sed as infructuous.
trade Pvt. Ltd
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the addition ss is upheld.
ed.”
or the assessee cal form during umn of Form No.
munication—the otices issued by knowledge of the sessee regarding tice, we consider e learned CIT(A) on afresh, after essee is directed communication uding monitoring he ground No. 3
he file of the Ld.
ed on merit are adjudicate upon 3. In the result, statistical purposes.
Order pronoun (RAHUL CHA
JUDICIAL M
Mumbai;
Dated: 30/07/2025
Rahul Sharma, Sr. P.S.

Copy of the Order forward
1. The Appellant
2. The Respondent.
3. CIT
4. DR, ITAT, Mumbai
5. Guard file.

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the appeal of the assessee ced in the open Court on 30/0
d/-
S
AUDHARY)
(OM PRAK
MEMBER
ACCOUNTA ded to :

BY ORDER

(Assistant Re

ITAT, Mu trade Pvt. Ltd
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4/MUM/2025
is allowed for 07/2025. KASH KANT)
ANT MEMBER
R, gistrar) umbai