Income Tax Appellate Tribunal - Mumbai
Nayan Rajendra Kshatriya,Mumbai vs Income Tax Officer, Kautilya Bhavan, ... on 25 March, 2026
IN THE INCOME TAX APPELLATE TRIBUNAL
"B" BENCH, MUMBAI
BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER
AND
SHRI JAGADISH, ACCOUNTANT MEMBER
ITA No. 5455/Mum/2025
Assessment Year: 2020-21
Nayan Rajendra Kshatriya Vs. Income Tax Officer
404 Hinal Residency, C41-43, G Block, BKC, Gilban
Dahanukar, Wadi, Kandivali Area, Bandra, Mumbai-400051
West, Mumbai- 400067
PAN: AWQPK9318M
(Appellant) (Respondent)
Assessee by Shri Jayant R. Bhatt
Department by Shri Swapnil Choudhari (SR. AR.)
Date of Hearing 24.03.2026
Date of Pronouncement 25.03.2026
ORDER
Per: SHRI JAGADISH, A.M.:
1. This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi dated 02.07.2025 for the assessment year 2020-21 passed under section 250 of the Income Tax Act, 1961.
2. The assessee is an individual who originally filed his return of income declaring total income and subsequently filed a revised return declaring a lower income. The case was selected for complete scrutiny under CASS to examine, inter alia, the reduction in income and ITA No.5455/M/2025 Nayan Rajendra Kshatriya enhanced claims of deductions. During the course of assessment proceedings, the Assessing Officer issued notices under sections 143(2) and 142(1) calling upon the assessee to furnish details and documentary evidences in support of the exemptions claimed under sections 10(13A) and 10(5), deductions claimed under Chapter VI-A and also details relating to transactions in securities. The assessment order records that the assessee failed to furnish requisite details and did not properly comply with the notices issued. Even the show cause notices issued prior to completion of assessment remained uncomplied with. In the absence of necessary evidences, the Assessing Officer proceeded to complete the assessment under section 143(3) making various disallowances and additions including disallowance of HRA and LTA, disallowance of deductions under sections 80EEA, 80D, 80DD, 80DDB and 80CCD(2), and additions towards alleged investment in securities under section 69 and alleged sale of securities.
3. Aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A). The Ld. CIT(A) has noted that though the delay in filing the appeal was condoned, the assessee did not make any effective or substantive submissions on the merits of the additions made by the Assessing Officer. The appellate order records that the additions were made on account of non-furnishing of evidences and that the assessee failed to rebut the findings of the Assessing Officer even at the appellate stage. Accordingly, the Ld. CIT(A) confirmed the additions made in the assessment order.
4. The learned Authorised Representative appeared before us and submitted that the orders passed by the Assessing Officer as well as the Ld. CIT(A) are without proper consideration of the assessee's submissions and evidences. It was contended that due to certain 2 ITA No.5455/M/2025 Nayan Rajendra Kshatriya circumstances, the assessee could not effectively comply during the assessment as well as appellate proceedings, and therefore the additions came to be made in absence of proper representation. The learned Authorised Representative submitted that the assessee is now in possession of all necessary evidences in support of the claims made and prayed that one more opportunity may be granted by restoring the matter to the file of the Assessing Officer for fresh adjudication. The learned Departmental Representative relied on the orders of the authorities below.
5. We have considered the rival submissions and perused the material available on record. It is evident from the record that the assessee did not furnish necessary evidences before the Assessing Officer and even before the Ld. CIT(A), no substantial or meaningful submissions were made to controvert the findings of the Assessing Officer. At the same time, the additions made by the Assessing Officer are largely based on absence of evidences and not on a detailed verification of facts. The issues involved, such as allowability of exemptions, deductions and additions under section 69, are essentially factual in nature and require proper examination of evidences.
6. Considering the entirety of the facts and circumstances, and in view of the submissions of the learned Authorised Representative that the assessee is now ready to furnish complete evidences, we are of the considered view that in the interest of justice and fair play, one more opportunity deserves to be granted to the assessee.
7. Accordingly, we set aside the impugned order of the Ld. CIT(A) and restore the entire matter to the file of the Assessing Officer for denovo assessment. The Assessing Officer shall afford reasonable opportunity of being heard to the assessee and decide the issues afresh 3 ITA No.5455/M/2025 Nayan Rajendra Kshatriya in accordance with law after considering the evidences that may be furnished. The assessee is also directed to cooperate in the proceedings and furnish all necessary details without seeking unwarranted adjournments.
8. In the result, the appeal of the assessee is allowed for statistical purposes.
9.
Order pronounced in the open court on 25/03/2026.
Sd/- Sd/-
(SANDEEP GOSAIN) (JAGADISH)
Judicial Member Accountant Member
Mumbai, Dated: 25/03/2026
Ashwani Rao
Sr. Private Secretary
Copy of the order forwarded to:
1. Appellant
2. Respondent
3. The CIT
4. The CIT (Appeals)
5. The DR, I.T.A.T.
By order
(Assistant Registrar)
ITAT, Mumbai
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