ARK DESIGNS PRIVATE LIMITED,MUMBAI vs. COMMISSIONER OF INCOME TAX (APPEALS) 12, MUMBAI

In the instant case, the Assessing Officer, vide assessment order dated 11.12.2017 passed u/s. 143(3) of the Act, made following additions:

The above additions were made mainly due to non- reconciliation of the aforesaid amounts being difference between the tax credit claimed in the return of income and that appearing in Form No.26AS.

The Assessee thus challenged the aforesaid additions by filing the first appeal before the Ld. Commissioner, who called for a remand report from the Assessing Officer. During the remand proceedings, the Assessee filed responses on certain occasions; however, according to the remand report dated 07.08.2025, the Assessee ultimately failed to comply with the final opportunity granted on 26.09.2017.

The Ld. Commissioner, thus considering that sufficient opportunities were afforded to the Assessee during the assessment as well as remand proceedings, however, the Assessee failed to furnish the requisite documentary evidence within the prescribed time and also failed to substantiate the claims raised in Form No.35 during the appellate proceedings, accordingly, dismissed the Assessee’s appeal by confirming the aforesaid additions.

Thus, the Assessee being aggrieved has preferred the instant appeal.

We have heard the parties, perused the material available on record and considered the rival submissions. The Ld. Counsel for the Assessee, at the outset, fairly accepts the failure of the Assessee to furnish certain documents, which are now placed at serial nos.6 to 9 of the paper book, relating to:

The Ld. Counsel, therefore, prays that one more opportunity may be granted to the Assessee to substantiate its claims by producing the aforesaid documents.

The Ld. DR, though supports the orders passed by the authorities below, however, fairly submits that the documents filed by the Assessee cannot be examined by the Tribunal at this stage, as the same were not produced before the authorities below. The Ld. DR, therefore, suggests that the Assessing Officer may be afforded an opportunity to verify the said documents.

Considering that the documents filed by the Assessee prima facie appear essential for proper and just adjudication of the issues involved, we deem it appropriate to remand the case to the file of the Jurisdictional Assessing Officer for factual verification and examination of the documents/additional evidence filed before us. The Assessee undertakes to produce the same before the Jurisdictional Assessing Officer without any delay or default.

Thus, the case is remanded to the file of the Jurisdictional Assessing Officer for decision afresh in accordance with law. Suffice it to say that a reasonable opportunity of being heard shall be afforded to the Assessee.

In the result, the Assessee’s appeal is allowed for statistical purposes.