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Facts
The assessee's twin appeals for assessment years 2015-2016 and 2017-2018 arise against the CIT(A)'s ex-parte orders, which upheld the Assessing Officer's additions for unexplained expenditure under Section 69C. The CIT(A)'s orders were passed without ensuring compliance with Section 250(6) of the Act.
Held
The Tribunal noted that the CIT(A)'s orders were ex-parte and lacked detailed adjudication as required by Section 250(6). Consequently, the Revenue's contentions were rejected, and the appeals were restored to the CIT(A) for fresh adjudication.
Key Issues
Whether the CIT(A)'s ex-parte order upholding unexplained expenditure additions was passed in accordance with the provisions of the Income Tax Act, 1961.
Sections Cited
69C, 250(6), 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI “G” BENCH : MUMBAI
Before: SHRI SATBEER SINGH GODARA & SHRI OMKARESHWAR CHIDARA
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “G” BENCH : MUMBAI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI OMKARESHWAR CHIDARA, ACCOUNTANT MEMBER ITA.Nos.2274 & 2271/Mum./2024 Assessment Years 2015-2016 & 2017-2018 Zubbin Khambatta, The Income Tax Officer, H-2, Navroze Baug, Ward-20(3)(1), Piramal Lalbaug, Mumbai–400012. Chamber, Lal Baug, Lower Maharashtra. vs. Parel, Mumbai – 400 013 PAN AEWPK3442G Maharashtra. (Appellant) (Respondent) For Assessee : Shri Sumit Mantri For Revenue : Shri Dr Kishor Dhule, CIT-DR Date of Hearing : 22.07.2024 Date of Pronouncement : 26.07.2024 ORDER PER SATBEER SINGH GODARA, J.M.
These assessee’s twin appeals ITA.Nos.2274 and 2271/Mum./2014 for assessment years 2015-2016 and 2017-2018, arise against the learned CIT(A)-National Faceless Appeal Centre, Delhi’s as many DIN & order nos. 1062116837(1), ITBA/NFAC/S/250/2023-24/1062116113(1) and 2 ITA.Nos.2274 & 2271/MUM./2024 dated 06.03.2024, in proceedings u/s.147 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties. Case files perused.
It emerges at the outset during the course of hearing that the CIT(A)-NFAC’s identical lower appellate findings; upholding the Assessing Officer’s action inter alia making sec.69C unexplained expenditure addition of Rs.1,69,02,856/- and Rs.3,45,10,679/- assessment year- wise, respectively; is ex-parte; and that too without ensuring compliance to sec.250(6) of the Act requiring it to give points for determination followed by a detailed adjudication thereof. Faced with this situation, we reject the Revenue’s vehement contentions and deem it appropriate in the larger interest of justice to restore the assessee’s instant twin appeals back to the CIT(A)-NFAC for it’s afresh adjudication, preferably within three effective opportunities of hearing, subject to the rider that it shall be the taxpayer’s onus and responsibility only to file and prove all the relevant facts in consequential proceedings. Ordered accordingly.
3 ITA.Nos.2274 & 2271/MUM./2024 5. These assessee’s twin appeals ITA.Nos.2274 & 2271/Mum./2014 are allowed for statistical purposes in above terms. A copy of this common order be placed in the respective case files.
Order pronounced in the open Court on 26.07.2024