ASHOKKUMAR CHHAGANBHAI MEHTA,RAJKOT vs. INCOME TAX OFFICER, WARD-1(1)(1), RAJKOT, RAJKOT

Brief facts of the case are that the assessee filed its return of income for Assessment Year 2022–23 declaring total income of ₹10,29,117. The case of the assessee was selected for scrutiny and notices under Sections 143(2) and 142(1) of the Income Tax Act, 1961 were issued. During the course of assessment proceedings, it was observed by the Assessing Officer that there were unsecured loans amounting to ₹1,96,00,824. The Assessing Officer further observed certain discrepancies relating to repayment/investment transactions amounting to ₹45,70,579. Since the assessee failed to properly comply with the notices and did not furnish necessary details before the Assessing Officer, the assessment was completed under Section 144 of the Act and the total income of the assessee was determined at ₹95,78,195. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the learned CIT(A), who dismissed the appeal and sustained the additions made by the Assessing Officer. 4. Before us, the learned Authorised Representative submitted that another opportunity may be granted to the assessee to substantiate its case and furnish all relevant documents before the Assessing Officer. It was submitted that if the matter is restored, the assessee shall fully cooperate in the proceedings. 5. On the other hand, the learned Departmental Representative did not raise any serious objection to restoration of the matter; however, it was submitted that an appropriate cost may be imposed upon the assessee considering its conduct during the proceedings. 6. We have heard the rival submissions and perused the material available on record. We find that in the instant case the assessment order was framed under

However, considering the negligent conduct of the assessee in not appearing before the authorities, we impose a cost of ₹2,500 upon the assessee, which shall be deposited in the Prime Minister Relief Fund. Proof of such payment shall be produced before the Assessing Officer at the time of hearing.

The assessee is directed to extend full cooperation and furnish all relevant documents/details as may be required by the Assessing Officer.

In the result, the appeal of the assessee is allowed for statistical purposes.