LAKHANI REALTY LLP,MUMBAI vs. INCOME TAX DEPARTMENT, MUMBAI

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ITA 4284/MUM/2023Status: DisposedITAT Mumbai03 May 2024AY 2020-21Bench: SHRI B.R. BASKARAN (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, in the interest of natural justice, decided to provide the assessee an opportunity to present their case before the CIT(A). Since the assessee failed to appear before the CIT(A) without proper reasons, a cost of Rs. 1,000/- was imposed. The order passed by the CIT(A) was set aside, and all issues were restored to the CIT(A)'s file for adjudication on merits.

What were the facts?

The assessee filed an appeal challenging the order dated 24/09/2023 passed by the CIT(A), NFAC. The appeal pertains to Assessment Year 2020-21 and involves an addition of Rs. 20 lacs made under section 68 of the Act relating to a loan taken by the assessee. The CIT(A) had passed an ex-parte order, dismissing the assessee's appeal.

What were the issues?

Whether the CIT(A) erred in passing an ex-parte order and dismissing the appeal without providing an opportunity to the assessee, and whether the addition of Rs. 20 lacs made under section 68 warrants reconsideration on merits.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI

Before: SHRI B.R. BASKARAN

For Appellant: Ms. Siddhi Manu
For Respondent: Shri Suni Mathews, Sr.DR
Hearing: 02/05/2024Pronounced: 03/05/2024

Vs. CIT(A), NFAC, Income Tax Department, Ward 28(2)(1), Vashi Railway Station Bldg., Navi Mumbai -400 705 - Respondent Appellant by : Ms. Siddhi Manu Respondent by : Shri Suni Mathews, Sr.DR Date of Hearing : 02/05/2024 Date of Pronouncement : 03/05/2024 O R D E R The assessee has filed this appeal challenging the order dated 24/09/2023 passed by CIT(A), NFAC, Delhi and it relates to the Assessment Year 2020-21. The only issue urged in this appeal relates to addition of Rs.20 lacs made u/s. 68 of the Act relating to loan taken by the assessee.

2.

At the outset I notice that the CIT(A) was constrained to pass order ex-parte, since the assessee did not appear before him. I notice that the CIT(A) has dismissed the appeal of assessee confirming the addition made by the Assessing Officer. However, in the interests of natural justice, I am of the view that assessee should be provided with an opportunity to present his case before the CIT(A). I notice that the assessee has not submitted proper reasons for not appearing before the Ld CIT(A). Hence, I impose a cost of Rs.1,000/- (Rupees One thousand)upon the assessee, which shall be paid to the credit of Income Tax Department within two months from the date of receipt of this order. Subject to the payment of above cost, which shall be verified by the CIT(A) at the time of hearing, I set aside the order passed by CIT(A) and restore all the issues to his file for adjudicating them on merits. I also direct the assessee to fully co-operate with 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 03rd May, 2024.

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