ASSISTANT COMMISSIONER OF INCOME TAX, MUMBAI vs. WINNING MOVES TOYS & GAMES PVT LTD, MUMBAI

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ITA 6390/MUM/2024Status: DisposedITAT Mumbai13 February 2025AY 2018-19Bench: SHRI SAKTIJIT DEY, HON'BLE (Vice President), SHRI NARENDRA KUMAR BILLAIYA, HON'BLE ACCOUNTANT MEMBER I.T.A. No. 6390/Mum/2024 Assessment Year: 2018-19 Assistant Commissioner of Income Tax Vs M/s. Winning Moves Toys & Games Pvt. Ltd. 304, Third Floor Hub Town Viva Jogeshwari East Mumbai - 400060 [PAN: AABCW5602L] अपीलार्थी/ (Appellant) प्रत्यर्थी/ (Respondent) Assessee by: None Revenue by:| Shri Pushkaraj Bhangepatil, Sr. D/R सुनवाई की तारीख/Date of Hearing : 06/02/2025 घोषणा की तारीख /Date 1 pages

AI SummaryDismissed

Facts

The revenue initiated re-assessment proceedings against the assessee, a company that had not filed its return of income for AY 2018-19. The AO framed a best judgment assessment based on information of import transactions amounting to Rs.1,11,92,073/-, treating it as unexplained expenditure under Section 69C of the Act.

Held

The Tribunal held that the CIT(A) correctly observed that the addition made by the AO was not maintainable as Section 69C of the IT Act could not be invoked for the given transaction. The CIT(A)'s decision to delete the addition was found to be sound.

Key Issues

Whether the addition made by the AO under Section 69C for unexplained expenditure is maintainable when the assessee provided details of import transactions?

Sections Cited

148A, 144, 69C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE

Hearing: 06/02/2025Pronounced: 13/02/2025

O R D E R

PER NARENDRA KUMAR BILLAIYA, AM:

This appeal by the revenue is preferred against the order of the NFAC, Delhi [hereinafter 'the ld. CIT(A)'] dated 07/10/2024 pertaining to AY 2018-19.

The grievance of the revenue reads as under:- “1. "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is right in deciding appeal in assessee's favour disregarding the fact that the assessee is non-filer for the year under consideration?" 2. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has right in not considering that no explanation in relation to imports made to tune of Rs.1,11,92,073/- was furnished during the proceedings u/s.148A of the Act and assessment proceedings? 3."The Appellant craves leave to add, amend and/or vary grounds of Appeal before or during the course of hearing."

2 3. None appeared on behalf of the assessee in spite of notice. We decide to proceed ex-parte.

Briefly stated the facts of the case are that the assessee is a company which has not filed its return of income for the assessment year under consideration and as per the information on Insight Portal under the category High Risk Non-filers, the AO initiated re-assessment proceedings by issuing notice u/s 148A of the Act and accordingly statutory notices were issued and served upon the assessee. The AO gave several opportunities but the assessee remained unresponsive forcing the AO to frame a best judgment assessment u/s 144 of the Act. Since the AO was in possession of the information of transactions under the PAN of the assessee amounting to Rs.1,11,92,073/- and in the absence of any details, the transactions with respect to import amounting to Rs.1,11,92,073/- was treated as assessee's own undisclosed and unexplained expenditure u/s 69C of the Act and the additions were made.