Paras Multiplex LLP Vs ITO (ITAT Mumbai)
The appeal before the Income Tax Appellate Tribunal, Mumbai arose from an ex-parte order passed by the Commissioner of Income Tax (Appeals), NFAC, for Assessment Year 2011–12. The assessee had originally filed a return declaring nominal income, which was accepted under section 143(3). Subsequently, the assessment was reopened under section 147, and contractual expenses amounting to ₹64.12 lakh were disallowed under section 69C, resulting in a substantially enhanced assessed income.
Before the CIT(A), multiple notices were issued, and several adjournments were granted at the assessee’s request. However, no substantive submissions or supporting documents were filed, leading the CIT(A) to dismiss the appeal on merits, uphold the reopening, and confirm the disallowance.
Before the Tribunal, the assessee challenged the ex-parte nature of the appellate order and sought another opportunity to contest the additions on merits. While noting the assessee’s lack of diligence before the first appellate authority, the Tribunal held that, in the interest of justice and fair play, the matter should be reconsidered. Accordingly, the Tribunal set aside the CIT(A)’s order and remanded the case for fresh adjudication, subject to payment of costs of ₹22,000 to the Prime Minister’s National Relief Fund, and directed the assessee to cooperate fully. The appeal was allowed for statistical purposes.
