MEERA SAVAN MISTRY,AHMEDABAD vs. INCOME TAX OFFICER, WARD 1(2)(3) , AHMEDABAD

The learned CIT(A) has erred in upholding the disallowance made by the AO at the rate of 20% of the receipts from one Chandulal Bhagvandas Sadhu, assuming it to be the purchases. Even when the AO was satisfied with the documents furnished, the incorrect disallowance was ultimately made. Such disallowance of Rs. 67,63,500/- is prayed to be deleted. Asst. Year :2021-22 - 2–

The learned CIT(A) has erred in law and on facts in confirming the disallowance made by the AO of ₹1,01,04,440/- being 20% of purchases and sales, assuming the same as purchases, without properly appreciating the facts, evidences and submissions placed on record.

The learned CIT(A) has erred in sustaining the disallowance merely on the basis of non-response of certain parties to notices issued under section 133(6). It is submitted that no response by the other party cannot by itself lead to addition or disallowance, as held by the Hon'ble Bombay High Court, the Hon'ble ITAT, Mumbai, and other Hon'ble Courts. The same be held now.

The learned CIT(A) has erred in confirming the ad-hoc disallowance of 20% of Rs. 5,05,22,202/-, without pointing out any specific defect in the books of account and without rejecting the audited books of accounts under section 145(3) of the Act..

On perusal of the record, we find that the assessee was granted sufficient opportunities of hearing to furnish details, clarifications, and explanations before the lower authorities. However, despite issuance of several notices by the Ld. CIT(A), the assessee remained non-compliant and failed to submit the requisite documents. We also note that the assessee failed to submit substantial documents even before the Assessing Officer. Before us, Ld. Counsel for the assessee prayed that, given an opportunity, due compliances will be made and all the details/clarification/explanation would be provided to the revenue authorities. Hence, in the interest of justice, the matter is remanded to the Assessing Officer for de novo assessment. The assessee shall submit all relevant bank statements and supporting documents before the Assessing Officer and shall comply with the notices issued by the Revenue authorities without seeking unnecessary adjournments. Asst. Year :2021-22 - 3–

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

""थ" / The Respondent. 3. संबंिधत आयकर आयु" / Concerned CIT 4. आयकर आयु"(अपील) / The CIT(A)- 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड" फाईल / Guard file.