First Stone Vs ITO (ITAT Mumbai)
Mumbai ITAT has quashed an order of CIT(A) that adjudicated on an issue entirely unrelated to the grounds raised in appeal, while ignoring the actual additions contested by Assessee.
Assessee, a partnership firm, had challenged additions made by AO towards estimated profit (₹86.54 lakh) & unsecured loan (₹5 lakh), totalling ₹91.54 lakh. However, in disposing of the appeal, CIT(A) instead introduced & decided upon a fresh issue u/s 43CA involving ₹38.99 lakh, an addition never made by AO & not forming part of the assessment proceedings, while leaving the original grounds unaddressed.
Tribunal observed that CIT(A) had acted without application of mind, violating the scope of appellate jurisdiction & principles of natural justice.
Accordingly, ITAT set aside the impugned order & remanded the matter to the CIT(A) for de novo adjudication of the issues actually raised, with a direction to pass a reasoned, speaking order after giving assessee due opportunity of being heard.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This is an appeal by the assessee against order dated 25.09.2023 passed by National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year (AY) 2017-18.
2. There is delay of 564 days in filing the appeal. Having perused the application seeking condonation of delay and the accompanying affidavit, we are satisfied that delay in filing the appeal was due to reasonable cause. Hence, we condone the delay and admit the appeal for adjudication.
