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Facts
The Revenue appealed against an order by the CIT(A) granting partial relief to the assessee. The AO had disallowed 20% of aggregate expenses amounting to Rs. 86.07 crores, disallowing Rs. 17.22 crores. The assessee claimed they could not upload details due to technical glitches.
Held
The Tribunal noted that neither the AO nor the CIT(A) had physically examined the expenses claimed by the assessee. Therefore, the Tribunal set aside the order and restored the issues to the AO for a fresh examination.
Key Issues
Whether the CIT(A) properly examined the expenses claimed by the assessee without a fresh examination by the AO, and if the case should be remanded for fresh examination.
Sections Cited
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Income Tax Appellate Tribunal, MUMBAI “A” BENCH : MUMBAI
Before: SHRI B.R. BASKARAN & SHRI NARENDER KUMAR CHOUDHRY
Date of Hearing : 24-02-2025 Date of Pronouncement : 24-02-2025 O R D E R PER B.R. BASKARAN, A.M :
The appeal of the Revenue and the cross objection filed by the assessee are directed against the order dated 12-08-2024 passed by the Ld CIT(A), NFAC, Delhi and they relate to the assessment year 2017- 18. The Ld CIT(A) granted partial relief to the assessee in respect of C.O. No. 259/Mum/2024 adhoc addition made by the AO. Hence both the parties are in appeal before the Tribunal.
The assessee company is carrying on business in various sectors like telecommunication, IT, retail banking, retail fuel dispensing and power control & conditioning. The assessee did not respond to the notice issued by the AO and hence the AO completed the assessment by disallowing 20% of the aggregate expenses amounting to Rs.86.07 crores claimed by the assessee, i.e., a sum of Rs.17.22 crores was disallowed by the AO.
The assessee challenged the assessment order by filing appeal before the Ld CIT(A). The assessee also raised various contentions against the adhoc addition and also furnished certain details. It was submitted that the assessee tried to upload various details that were called for by the AO, but they could not be uploaded due to technical glitches. In view of the above submissions, the Ld CIT(A) called for a remand report from the AO, but the AO did not furnish the same. Hence, the Ld CIT(A) proceeded to examine various expenses claimed by the assessee and accordingly granted partial relief to the assessee. Hence, both the parties are appeal in before the Tribunal.
We heard the parties and perused the record. We notice that the Ld CIT(A) did not physically examine the various expenses claimed by the assessee vis-à-vis the relevant vouchers and proceeded to give partial relief on adhoc basis. As noticed earlier, the assessee could not furnish the details that were called for by the AO, as according to the assessee, it could not upload the details due to technical glitches. At the outset, it is noticed that the claim of various expenses was not actually examined either by the AO or by Ld CIT(A). Under these set of facts, we are of the view that entire issues require fresh examination at the end of the AO.
C.O. No. 259/Mum/2024 5. Accordingly, we set aside the order passed by the Ld CIT(A) and restore all the issues to the file of the AO for examining them afresh. We also direct the assessee to fully co-operate with the AO for expeditious completion of the assessment. 6. In the result, the appeal of the Revenue and the cross objection of the assessee are treated as allowed for statistical purposes.