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Facts
The assessee filed three appeals against the orders of the Ld. CIT(A) which were passed ex-parte. The original assessment orders were passed under section 153C read with section 144 of the Income Tax Act, 1961, concerning additions for loan taken, commission income, and disallowance of business loss.
Held
The Tribunal held that the assessee deserved another opportunity to present their case before the Ld. CIT(A) on both legal and factual grounds. The matter was remanded to the Ld. CIT(A) for adjudication afresh, with a direction to afford the assessee a reasonable opportunity of being heard.
Key Issues
Whether the Ld. CIT(A) erred in passing ex-parte orders without examining the merits of the case, and if the assessee should be granted another opportunity for adjudication.
Sections Cited
250, 153C, 144, 68, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “E”, MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI ANIKESH BANERJEE
All three appeals of the assessee were filed against the order of the Learned Commissioner of Income-tax (Appeals)-49, Mumbai [in short, ‘Ld.CIT(A)] passed under section 250 of the Income Tax Act, 1961 (in short, ‘the Act’), date of order 30/12/2024 for A.Y. 2014-15, 2017-18 and 2020-21. The impugned orders were 2 ITAs 1358 to 1360/Mum/2025 K. Sera Sera Cinelines & Miniplex Pvt Ltd emanated from the order of the Learned DCIT, Central Circle 7(4), Mumbai (in short, the Ld.AO) passed under section 153C read with section 144 of the Act, date of order 30/03/2023 for A.Y. 2020-21, 29/03/2023 for A.Ys. 2014-15 & 2017-18.
All the appeals have same nature of facts and have a common issue; therefore, all the appeals were heard together and are being disposed of by this consolidated order. is taken as lead case.
During argument the Ld.AR submitted that the assessment was completed under section 153C read with section 144 of the Act. Related to addition of loan taken of Rs.25,000/- which was added back under section 68, addition of commission income under section 69A of the Act amount to Rs.1,250/- and disallowance of business loss amount to Rs.55,269/-. The aggrieved assesse filed an appeal before the Ld. CIT(A). The Ld. CIT(A) allowed the assessee a reasonable opportunity for hearing but on some of the occasions, the assesse only submitted the adjournment petition and no submission was filed by the assesse in favour of the argument in appellate proceeding. Finally, the Ld.CIT(A) passed the order exparte & uphold the impugned assessment order. Being aggrieved, the assesse filed an appeal before us.
We have heard the rival submissions and perused the material available on record. The Ld. AR submitted that the assessee had challenged the issues both on legal grounds as well as on merits before the Ld. CIT(A), and the same grounds have also been raised in the present appeal before the Tribunal. However, the Ld. CIT(A),
3 ITAs 1358 to 1360/Mum/2025 K. Sera Sera Cinelines & Miniplex Pvt Ltd without examining the merits of the case, proceeded to dispose of the appeal ex parte. During the course of hearing before us, the Ld. AR submitted a paper book comprising pages 1 to 140, which has been taken on record. Upon perusal of the said paper book, it is observed that none of the documents therein were submitted before the Ld. CIT(A). The Ld. AR expressed his intent to argue the matter on legal issues; however, it is noted that no arguments on any of the grounds were made before the Ld. CIT(A). In our considered view, the assessee deserves another opportunity to present her case before the Ld. CIT(A), both on legal and factual grounds. In the interest of justice, we find it appropriate to remand the matter to the file of the Ld. CIT(A) for adjudication afresh. Both the Ld. AR and the Ld. DR have agreed to the course adopted by the Bench. Accordingly, the matter is remitted back to the file of the Ld. CIT(A) for de novo adjudication. We make no observation on the merits of the case, so as not to prejudice the outcome of the re-adjudication. It is, however, directed that the assessee be afforded a reasonable opportunity of being heard, and be permitted to file any documents or evidence in support of her claim, in accordance with law.
The facts and circumstances in this appeal are identical to those appeals before the ITAT in & 1360/Mum/2025. Therefore, the decision rendered in is equally applicable to the present appeal
4 ITAs 1358 to 1360/Mum/2025 K. Sera Sera Cinelines & Miniplex Pvt Ltd mutatis mutandis. Consequently, & 1360/Mum/2025 is also remanded to the file of the Ld. CIT(A) and are allowed for statistical purposes.