PRAKASH REALTY,MUMBAI vs. INCOME TAX OFFICER, WARD 27(3)(1), MUMBAI, MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL
“C” BENCH MUMBAI

BEFORE HON’BLE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER &
SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER
Prakash Realty
506-509,5th Floor A wing
Shrikant
Chambers,
Sion
Trombay
Road,
Chembur
Mumbai- 400071

Vs.
Income
Tax
Officer,
Ward 27(3)(1), Mumbai
IT-Office, Vashi Railway
Station Building, Navi
Mumbai, Navi Mumbai-
400703
PAN/GIR No. AAMFP1688F
(Applicant)
(Respondent)

Assessee by Shri. Rakesh Joshi
Revenue by Shri. Virabhadra S. Mahajan, SR. DR.

Date of Hearing
10.07.2025
Date of Pronouncement
24.07.2025

आदेश / ORDER

PER SANDEEP GOSAIN, JM:

The present appeal has been filed by the assessee challenging the impugned order 12.01.2024 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the National
Faceless Appeal Centre, Delhi (NFAC) for the assessment year 2013-14. 2. There is delay of 376 days in filing present appeal and in this regard an affidavit for seeking condonation of delay

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Prakash Realty has been filed by the assessee, wherein it has been mentioned as under:
1, Jagdish Nand Bijlani, Indian Habitant, Adult, and managing partner of M/s. Prakash Realty, having Office situated at 506-
509, 5th Floor 'A' Wing Shrikant Chambers, Sion Trombay
Road, Chembur Mumbai 400071, Maharashtra India do hereby state on solemn affirmation as under: -
1) That, the appellant above named, being aggrieved by the assessment order u/s 147 r.w.s 144 r.w.s 144B of the Income
Tax Act 1961, had filed an appeal before Hon'ble CIT(A) on 08.04.2022, relevant to the assessment year 2013-14. 2) The Hon'ble CIT(A), vide order dated 12-01-2024, granted partly relief to the appellant by restricting the addition to the extent of Rs.28,79,125/-. Before the Hon'ble CIT(A), the appellant filed the additional evidence in the form of interest certificate and 26AS showing that during the year under consideration it earned the gross interest income of Rs.28,79,125/- only. The Hon'ble CIT(A) without providing the further opportunity of being heard to the appellant, passed the order by restricting the addition to the extent of Rs.28,79,125/- by treating the gross receipt of the interest as alleged undisclosed income of the appellant without allowing claim of deduction of interest paid and other incidental expenses which was incurred to earned the said income.
3. Though, the appellant was aggrieved by the said CIT(A) order, but could not file the appeal before the Hon'ble ITAT, only in order to buy peace of mind and avoid litigation expenses. Subsequently, the appellant received the penalty order u/s.271(1)(c) of the Income Tax Act, 1961 imposing the penalty on the issue of addition restricted to Rs.28,79,125/- as alleged undisclosed interest income of the appellant. At the time of filing the appeal against the penalty order, the counsel advised him to file an appeal against the Hon'ble CIT(A) order.
Taking this advice into consideration, the appellant decided to proceed with the appeal. Hence, there is a delay in filing appeal before Your Honour.

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Prakash Realty

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Prakash Realty we condone the delay and admit the appeal to be heard on merits
5. We have heard both the counsel for both the parties and perusal of material available on record and orders passed by the revenue authorities. From the record we notice that addition in the present case were made by the AO on account of the fact that assessee had earned interest income in his bank account but in absence of any details/explanation furnished by the assessee the addition were made.
6. However, during the pendency of appeal before the Ld.CIT(A), the assessee had filed application for leading additional evidence the fact of which has been reproduced at para No.4 of the appeal order passed by Ld. CIT(A).
However, Ld. CIT(A) didn’t adjudicate the said application for leading a additional evidence. Therefore now during the present appeal before us the assessee has again moved a similar application for leading additional evidence as sufficient opportunity was not provide to the assessee by the AO for producing documents.
7. On the contrary the Ld. DR while relying upon the order passed by the revenue authorities submitted that sufficient and proper opportunities were afforded to the assessee but even inspite of that assessee miserable failed to placed on 5
Prakash Realty record the supported documents in order to substantiate its claim.
8. Be that has it may in our view the interest of the justice would be made in case the lis between the parties is decided on merits. Therefore without going into the merits of the claim raised by the assessee. The facts still remains that assessee could not placed on record all the documents in order to substantiate its claim. Therefore, keeping in view the said fact we restore the matter back to the file of AO for deciding it afresh after providing opportunity of hearing to the assessee and assessee shall be at liberty to place on record any document in order to support or substantiate its claim. The assessee is burden with cost of Rs. 2000/- which shall be deposit in the Prime Minister’s
Relief Fund within 15 days from the date of the receipt of the order and copy of the same shall be placed before the file of AO. Thereafter AO shall proceed to decide the matter has fresh. The assessee shall not seek any adjournment on unnecessary ground and shall remain co-operative during the course of proceedings.
9. Before parting, we make it clear that our decision to restore the matter back to the file of the AO shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the Ld.
AO independently in accordance with law.

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Prakash Realty

Order pronounced in the open court on 24.07.2025 (PRABHASH SHANKAR) (SANDEEP GOSAIN)
ACCOUNTANT MEMBER JUDICIAL MEMBER

Mumbai, Dated 24/07/2025

Disha Raut, Stenographer

आदेश की ितिलिप अेिषत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant
2. थ / The Respondent.
3. संबंिधत आयकर आयु / The CIT(A)
4. आयकर आयु(अपील) / Concerned CIT
5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण,मुबई/ DR, ITAT, Mumbai
6. गाड फाईल / Guard file.
आदेशानुसार/BY ORDER,
सािपत ित ////