AAKEELAH ABDULRAZZAK BALBALE,THANE vs. ACIT, CIRCLE 1, THANE, THANE

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ITA 5949/MUM/2024Status: DisposedITAT Mumbai05 February 2025AY 2017-18Bench: SHRI B.R. BASKARAN (Accountant Member), SHRI ANIKESH BANERJEE (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal set aside the ex-parte order of the Ld CIT(A) and restored the issues to the file of the Ld CIT(A) to provide the assessee with another opportunity to present their case.

What were the facts?

The assessee filed an appeal against the order of the Ld CIT(A) confirming the disallowance of interest expenditure under Section 57(iii) of the Income Tax Act for AY 2017-18. The assessee did not appear before the Ld CIT(A), leading to an ex-parte order.

What were the issues?

Whether the assessee was granted adequate opportunity of being heard by the lower authorities, and if not, whether the case should be remanded for a fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 57(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI “A” BENCH : MUMBAI

Before: SHRI B.R. BASKARAN & SHRI ANIKESH BANERJEE

O R D E R PER B.R. BASKARAN, A.M :

The assessee has filed this appeal challenging the order dated 24-10-2024 passed by the Ld CIT(A), NFAC. Delhi and it relates to the Assessment Year (AY.) 2017-18. The assessee is aggrieved by the decision of the Ld CIT(A) in confirming the disallowance of interest expenditure claimed u/s 57(iii) of the Income Tax Act, 1961 („the Act‟).

2.

None appeared on behalf of the assessee. We notice that the Ld CIT(A) was also constrained to pass the order ex-parte, since the assessee did not appear before him. However, we notice that the assessee had sought adjournment on the last occasion before the Ld CIT(A), but the first appellate authority proceeded to dispose of the appeal. Accordingly, in the interest of natural justice, we are of the view that the assessee may be provided with one more opportunity to present his case properly before the Ld CIT(A). Accordingly, we set aside the impugned order passed by the Ld CIT(A) and restore all the issues to his file to adjudicate them afresh after affording adequate opportunity of being heard to the assessee. We also direct the assessee to fully co-operate with the Ld CIT(A) for expeditious disposal of the appeal.

3.

In the result, the appeal filed by the assessee is treated as allowed. Order pronounced in the open court on 05-02-2025 Sd/- Sd/- [ANIKESH BANERJEE] [B.R. BASKARAN] JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 05-02-2025 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, ITAT, Mumbai 5) Guard file

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