ITAT Mumbai Upholds Crore-Worth Additions Against Darwin Platform Industries Limited for Persistent Non-Compliance

Overview of the Case

Darwin Platform Industries Limited Vs ITO (ITAT Mumbai)
Assessment Years: 2021-22 and 2022-23
Order Pronounced: 27.03.2026

The Income Tax Appellate Tribunal (ITAT), Mumbai recently pronounced a significant ruling against Darwin Platform Industries Limited, dismissing both appeals filed by the assessee company. The dismissal stemmed not merely from the merits of the additions made by the Assessing Officer, but substantially from the assessee's glaring pattern of non-appearance and disregard for procedural compliance at every stage of the proceedings. This case serves as a stark reminder that procedural diligence is not merely a formality — it can determine the very outcome of an appeal.

Background: Who Is the Assessee?

Darwin Platform Industries Limited is a resident corporate entity engaged in retail trading across a diverse range of products, including raw materials, finished and semi-finished goods, groceries, garments, fruits and vegetables, apparel, furniture, fixtures, furnishings, cosmetics, child care products, and electrical and electronic goods.

The assessee had filed its returns of income under Section 139(1) of the Income Tax Act, 1961 for both the assessment years under consideration. Both returns were subsequently selected for scrutiny.

Chronology of Non-Appearance: A Pattern of Indifference

At the ITAT Level

Before the Tribunal could even examine the merits, it recorded a deeply troubling pattern of non-compliance by the assessee:

  • The appeals were first listed on 15.10.2025 — no one appeared on behalf of the assessee.
  • Fresh notices were dispatched via speed post, and the matter was adjourned to 11.12.2025 — again, no appearance.
  • The Tribunal further adjourned the hearing to 09.02.2026 — the assessee remained absent once more.
  • A final listing was fixed for 24.02.2026.

Importantly, the ITAT did not merely issue physical notices. Electronic notices were sent to the assessee's registered email ID (as provided in Form No. 36) on 28.08.2025, 16.10.2025, 11.12.2025, and 09.02.2026 — and not a single communication was responded to.

Faced with this pattern of consistent non-response, the Tribunal declared the assessee ex parte and proceeded to adjudicate the appeals on the basis of available records and submissions by the Departmental Representative (DR).

At the First Appellate Authority (CIT(A) / NFAC) Level

The assessee's indifference was not limited to proceedings before the ITAT. The National Faceless Appeal Centre (NFAC), Delhi, which had passed the impugned orders dated 17.06.2025 for both assessment years, had also documented the assessee's non-cooperative conduct.

For AY 2021-22, the CIT(A) observed: