SHYAM SHARMA,RANCHI vs. ITO WARD 3(1), INCOME TAX RANCHI

ITA 75/RAN/2026Status: DisposedITAT Ranchi30 September 2026AY 2020-20213 pages
AI SummaryDismissed

What did the Tribunal hold?

The ITAT held that the assessee had failed to pursue the appeal. The Tribunal noted that the case was fixed for hearing on four occasions, and on each occasion, neither the assessee nor any authorized representative appeared. Based on this consistent non-appearance, the Tribunal concluded that the assessee did not wish to prosecute the appeal. Consequently, the Tribunal confirmed the order of the learned CIT(A). The appeal was dismissed, and the operative direction was to confirm the order of the CIT(A), implying that the additions made by the AO and upheld by the CIT(A) stand. No specific issue was left undecided; the decision was based on the assessee's failure to prosecute.

What were the facts?

The assessee, Shyam Sharma, filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging the order of the National Faceless Appeal Centre (NFAC), Delhi, for Assessment Year 2020-21. The Assessing Officer (AO) had made ex parte additions totaling ₹23,67,237. This included disallowances of ₹19,72,410 for commission expenses, ₹2,26,087 for unsubstantiated expenses, and ₹1,68,740 for deductions claimed under Chapter VI-A. The AO initiated these actions due to the assessee's failure to provide compliance or replies despite multiple opportunities during the e-assessment. The assessee appealed to the CIT(A), who also dismissed the appeal for lack of compliance. The assessee then filed the present appeal before the ITAT. The ITAT provided four opportunities for hearing, but the assessee or their representative did not appear.

What were the issues?

1. Whether the learned CIT(A) erred in confirming the disallowance of ₹19,72,410/- made by the AO under the head commission expenses, as per Section 37 of the Income Tax Act, 1961. 2. Whether the learned CIT(A) erred in confirming the disallowance of expenses of ₹2,26,087/- made by the AO, as per Section 37 of the Income Tax Act, 1961. 3. Whether the learned CIT(A) erred in confirming the disallowance of ₹1,68,740/- claimed by the assessee under Chapter VI-A of the Income Tax Act, 1961. 4. Whether the AO wrongly initiated penalty proceedings on the additions made. Assessee's contentions: The assessee contended that the disallowances made by the AO and confirmed by the CIT(A) were incorrect. Specifically, the commission expenses, other expenses, and Chapter VI-A deductions were claimed to be legitimate business expenditures. The assessee also argued that the penalty proceedings were wrongly initiated. Revenue's contentions: The revenue, represented by the Senior Departmental Representative (Sr.DR), likely supported the orders of the lower authorities, emphasizing the assessee's consistent failure to provide any evidence or explanation to substantiate the claims, both before the AO and the CIT(A), and subsequently before the ITAT.

Which sections of the Income-tax Act were involved?

Section 37

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: SHRI RATNESH NANDAN SAHAY & SMT. RAJANI GUDURI

For Respondent: Shri Sandipan Khan, Sr.DR
Hearing: 23/09/2026Pronounced: 30/09/2026

PER: BENCH

1.

This appeal by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi, [in short, the ld. CIT(A)] dated 16/08/2024 for the Assessment Year (AY) 2020-21 wherein the assessee has raised following grounds of appeal:

"

1.

That the ld. CIT(A) has wrongly confirmed the disallowance of ₹ 19,72,410/- made by the Ld. AO under the head commission expenses.

2.

That the ld. CIT(A) has wrongly confirmed the disallowance of expenses of ₹ 2,26,087/- made by the Ld. A.O.

3.

That the Ld. CIT(A) has wrongly confirmed the disallowance of ₹ 1,68,740/- made claimed by the assessee under Chapter0VI(A) of the I.T. Act, 1961

The order continues below.

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