ASSISTANT COMMISSIONER OF INCOME TAX, MUMBAI vs. WINNING MOVES TOYS & GAMES PVT LTD, MUMBAI

This appeal by the revenue is preferred against the order of the NFAC, Delhi [hereinafter 'the ld. CIT(A)'] dated 07/10/2024 pertaining to AY 2018-19.

The grievance of the revenue reads as under:- “1. "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is right in deciding appeal in assessee's favour disregarding the fact that the assessee is non-filer for the year under consideration?" 2. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has right in not considering that no explanation in relation to imports made to tune of Rs.1,11,92,073/- was furnished during the proceedings u/s.148A of the Act and assessment proceedings? 3."The Appellant craves leave to add, amend and/or vary grounds of Appeal before or during the course of hearing."

Briefly stated the facts of the case are that the assessee is a company which has not filed its return of income for the assessment year under consideration and as per the information on Insight Portal under the category High Risk Non-filers, the AO initiated re-assessment proceedings by issuing notice u/s 148A of the Act and accordingly statutory notices were issued and served upon the assessee. The AO gave several opportunities but the assessee remained unresponsive forcing the AO to frame a best judgment assessment u/s 144 of the Act. Since the AO was in possession of the information of transactions under the PAN of the assessee amounting to Rs.1,11,92,073/- and in the absence of any details, the transactions with respect to import amounting to Rs.1,11,92,073/- was treated as assessee's own undisclosed and unexplained expenditure u/s 69C of the Act and the additions were made.

The assessee agitated the matter before the ld. CIT(A) and furnished necessary details as additional evidence which contained the following:-