MIRADOR CONSTRUCTION PRIVATE LIMITED,MUMBAI vs. CIRCLE 14(1)(1), MUMBAI, DEPUTY COMMISSIONER OF INCOME TAX, AAYAKAR BHAWAN, MUMBAI

Briefly, the facts of the case are that the assessment in this case was completed u/s. 143(3) of the Act vide order dated 27.12.2019, wherein the Assessing officer brought to tax a sum of Rs. 1,53,00,000/- as unexplained cash credit u/s. 68 of the Act for the reason that the assessee has failed to discharge 2017-18 Mirador Construction Private Limited the necessary onus in terms of proving the identity as well as genuineness of the transactions under consideration. The assessee thereafter carried the matter in appeal before the ld. CIT(A), who has since dismissed the appeal of the assessee on account of non-prosecution and against the said order, the assessee is in appeal before us.

During the course of hearing, the ld. AR submitted that the non- appearance before the ld. CIT(A) was neither deliberate nor intentional. It was submitted that due to severe financial hardship, mental stress and involvement in other legal proceedings before the NCLT, EOW and section 138 matters before the Courts, the assessee couldn’t attend to the tax proceedings and respond to the notices issued by the ld. CIT(A). It was submitted that in interest of justice, the assessee be provided one more opportunity to present its case and the matter may be remanded to the file of the ld. CIT(A) for fresh adjudication. In this regard, our reference was drawn to the affidavit filed by the Director of the assessee company, Mr. Vijay Babusing Pawar as well as affidavit of Ms. Manasi Hrushikesh Inamdar. Further, it was submitted that subsequent to the passing of the assessment order wherein the AO has brought to tax the amount pertaining to 07 parties from whom the assessee has received unsecured loans, the Pr.CIT has passed an order u/s. 263 of the Act, wherein vide order dated 11.03.2022 the matter relating to remaining all other unsecured loans were remanded to the file of the AO for necessary examination. It was submitted that in the set- aside proceedings, the assessee has filed detailed submissions/documentation regarding the settlement which has been arrived at with various parties wherein the matter has been settled by way of repayment or otherwise and it was stated at the Bar that the said submissions also include the details in respect of the parties in respect of whom the addition had been made by the AO in the instant 2017-18 Mirador Construction Private Limited case. It was accordingly submitted that the assessee has the necessary documentation in its possession whereby it can demonstrate the genuineness of the transactions and can provide the said information/documentation and an opportunity may therefore be provided and the matter may be set aside to the file of ld. CIT(A).