MANAN TRADING COMPANY PRIVATE LIMITED,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX CC-1(1), MUMBAI

Admittedly, the Assessee despite of affording various opportunities by the Ld. Commissioner, except submitting partial response to the notice dated 19/12/2024, eventually made no effective compliance and/or submitted no substantive submission and documents. Therefore, in the constrained circumstances, the Ld. Commissioner affirmed the decision of the Assessing Officer (AO) in making the addition of Rs. 8,00,595/- being 1% of the total business turnover/sales of Rs.8,00,595/- considering as accommodation entry, vide assessment order, dated 24/03/2022 u/sec. 143(3) of the Act and therefore, the Assessee is not entitled for any leniency.

However coming to another aspect of the case it is observed the Ld. Commissioner in absence of relevant submissions and/or documents, was constrained to affirm the decision of the AO and therefore could not decide the issue involved in its right perspective and proper manner, thus, considering the peculiar facts and circumstances for just and proper decision of the case and substantial justice, this Court is inclined to remand the instant case to the file of Ld. Commissioner for decision afresh, however, subject to deposit of Rs. 5,500/- (Rupees Five Thousand Five Hundred Only) with the Revenue Department under the ‘other head’ within 15 days from the date of receipt of this order. This Court clarify that in case of subsequent default, the Assessee shall not be entitled for any leniency. Thus, the case is, accordingly, remanded to the Ld. Commissioner for decision afresh, by allowing appeal of the Assessee for statistical purposes. having involved identical facts and issues, is also stands allowed for statistical purposes in the same terms.