M/S. MOHAN TRACTORS PVT. LTD.,,ROHTAK vs. PR CIT, ROHTAK
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Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI
Before: SH. N. K. BILLAIYA & MS. ASTHA CHANDRA
PER N.K. BILLAIYA, AM:
This appeal by the assessee is preferred against the order
dated 23.03.2016 framed u/s. 263 of the Act by the Pr. CIT,
Rohtak for A.Y. 2011-12.
The grievance of the assessee read as under :-
None appeared on behalf of the assessee. A perusal of our
record show that this appeal was first listed on 04.09.2019 on
which date nobody appeared thereafter on 23.02.2021,
30.09.2021, 16.12.2021, 28.02.2022, 05.04.2022 in all these
dates no one appeared on behalf of the assessee inspite of the
notices. The impugned assessment year is A.Y.2011-12 and the
impugned order is framed u/s. 263 of the Act. This being an old
matter we decided to proceed exparte.
The DR was heard at length. Case records carefully perused.
Briefly stated the facts of the case are that the assessee is
an authorized dealer of JCB, Ashok Leyland, Eicher Tractor.
Return for the year under consideration was selected for scrutiny
under “CASS” and accordingly statutory notices were issued and
served upon the assessee.
During the course of the scrutiny assessment proceedings
the assessee was asked to file the comparative chart of Sales,
Gross Profit, Net Profit, G.P. Ratio and Net Profit Ratio of the
current year and on perusal of the details the AO made certain
additions and framed order u/s. 143 (3) of the Act on 25.10.2013.
Assuming the power conferred upon him by the provision of
section 263 of the Act the Pr. CIT, Rohtak served notice upon the
assessee asking the assessee to show cause why the Assessment
Order dated 25.10.2013 framed u/s. 143 (3) of the Act be not
treated as erroneous and prejudicial to the interest of the revenue
as no enquiry was made by the AO in respect of interest free
advances of Rs. 1.33 crores which included certain advances for
purchase of property on which interest was not capitalized.
Assessee filed reply to the show cause notice which was duly
considered by the Pr. CIT. However, the Pr. CIT was of the firm
belief that since no enquiry was made by the AO, he deem it fit to
set aside the Assessment order dated 25.10.2013 with a direction
to the AO to reframe the same after making proper enquiry in
respect of the advances given by the assessee holding the
assessment order as erroneous and prejudicial to the interest of
the revenue.
On the aforementioned facts and on finding that the AO
infact did not make any enquiry in respect of interest free
advances has certainly made the Assessment order dated
25.10.2013 erroneous and prejudicial to the interest of the
revenue. We, therefore, do not find any reason to interfere with
the findings of the Pr. CIT. The appeal filed by the assessee is
accordingly dismissed.
Decision announced in the open court on 31.05.2022.
Sd/- Sd/- (ASTHA CHANDRA) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER *NEHA, Sr. Private Secretary* Date:- 31.05.2022 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Date of dictation 31.05.2022 31.05.2022 Date on which the typed draft is placed before the dictating Member 31.05.2022 Date on which the typed draft is placed before the Other member 31.05.2022 Date on which the approved draft comes to the Sr.PS/PS 31.05.2022 Date on which the fair order is placed before the Dictating Member for Pronouncement 31.05.2022 Date on which the fair order comes back to the Sr. PS/ PS 31.05.2022 Date on which the final order is uploaded on the website of ITAT 31.05.2022 Date on which the file goes to the Bench Clerk Date on which file goes to the Head Clerk. The date on which file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order
