M/S. MAHAK CREATION PRIVATE LIMITED,AHMEDABAD vs. THE ITO, WARD-2(1)(1), AHMEDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER M/s. Mahak Creation Private Income Tax Officer, Vs. Limited, Ward-2(1)(1), Mittal House, Ahmedabad. Atira Road, Ambawadi, Ahmedabad-380015. [PAN :AAECM7657 E] (Appellant) .. (Respondent) Appellant by : Shri Mohit Balani, AR Respondent by: Shri Suresh Chand Meena, Sr. DR Date of Hearing 03.07.2025 Date of Pronouncement 09.07.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

This appeal is filed by the Assessee against the appellate order dated 16.12.2024 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2018-19. 2. The assessee has raised the following grounds of appeals:

1. Learned CIT(A) has erred in law and on the facts of the case in passing the impugned order, ex-parte without deciding the merits 2. Learned CIT(A) has erred in law and on the facts in confirming the action of Ld.AO in making an addition of Rs.48,19,870/- as undisclosed transaction on account of alleged accommodation entries from various concerns. M/s. Mahak Creation Pvt. Ltd. Vs. ITO Asst. Year : 2018-19 - 2– 3. Learned CIT(A) has erred in law and on the facts in confirming the action of AO in charging interest u/s.234 A/B/C/D. 4. Learned CIT(A) has erred in law and on the facts in confirming the action of AO in initiating penalty u/s.271AAC of the Act which is wholly unsustainable in law and on facts of the case.

3. On going through the record, we find that the notices u/s.250 were issued on 02.05.2023, 14.10.2024, 29.10.2024 & 11.11.2024, requesting the assessee to submit certain details/clarification/ explanation regarding undisclosed transaction. However, in pursuance to the same the assessee failed to submit any reply and the Ld. CIT(A) confirmed the action of the Assessing Officer by dismissing the appeal of the assessee. The Ld. Counsel for the assessee prayed that, given an opportunity, all the details/clarification/explanation would be provided to the revenue authorities. Hence, in the interest of justice the matter is remanded to the Ld.CIT(A) for conducting assessment de-novo. The assessee shall submit all the relevant bank statement/submission/document before the Ld.CIT(A) and comply with the notices issued by the revenue authorities without seeking any unnecessary adjournments.