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Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: HON’BLE SHRI V. DURGA RAO & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2012-13 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 16.03.2022 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 16.03.2015. The sole grievance of the assessee is disallowance of Rs.54 Lacs u/s 40A(3). 2. Though the assessee has filed an adjournment application, however, after perusal of orders of lower authorities, the bench formed 2 - an opinion that the matter has to be restored back to the file of Ld. AO since sufficient documentary evidences could not be filed by the assessee before lower authorities.
The impugned disallowance stem from the fact that that assessee debited expenditure of Rs.54 Lacs in the Profit & Loss Account which was held to be cash payment exceeding Rs.20,000/- which would attract disallowance u/s 40A(3). The same has been tabulated in para 3.1 of the assessment order. The assessee submitted that Mr. D.Karthikeyan of assessee-company colluded and conspired with other branch managers and staff and manipulated the stock, computer accounts and cash etc. Thus, there was misappropriation of funds which was debited to Profit & Loss Account. However, in the absence of any details forthcoming from the assessee, Ld. AO made disallowance u/s 40A(3). The position substantially remained the same during appellate proceedings. Consequently, the disallowance was confirmed against which the assessee is in further appeal before us.
Having considered the orders of lower authorities, we set aside the impugned order and restore the matter back to the file of Ld. AO for fresh adjudication with a direction to the assessee to substantiate the claim. Needless to add that adequate opportunity of hearing shall be granted to the assessee.
The appeal stands allowed for statistical purposes. Order pronounced on 26th May, 2022.