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Before: Shri V. Durga Rao & Shri G. Manjunatha
O R D E R
PER V. DURGA RAO, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals)-7, Chennai dated 31.01.2019 relevant to the assessment year 2014-15.
Brief facts of the case are that the assessee filed the return of income for the assessment year 2014-15 declaring a loss of ₹.4,61,59,836/-. The case was selected for scrutiny and notice under section 143(2) of the Income Tax Act, 1961 [“Act” in short] dated 03.09.2015 was served on the assessee. None appeared on behalf of the assessee and therefore, the Assessing Officer completed best judgement assessment under section 144 of the Act dated 21.12.2016 by assessing income of the assessee at ₹.57,61,394/-. On appeal, the ld. CIT(A) dismissed the appeal filed by the assessee.
On being aggrieved, the assessee is in appeal before the Tribunal. None appeared on behalf of the assessee ever since the appeal was taken up for hearing since 18.07.2019. Hence we proceed to decide the appeal on merits after hearing the ld. DR.
We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below. In the assessment order, the Assessing Officer has noted that the revenue of the assessee company for the current year, it has reduced by 4% when compared to the previous financial year. Corresponding with the income declared, the expenses should be less than the previous year or at the most it could be on par with the previous years. Therefore, the excess expenditure claimed of ₹.5,19,21,230/- was disallowed in the absence of any details/proof relating to the expenses claimed. On appeal, the assessee has submitted before the ld. CIT(A) that an amount of ₹.44,13,714/- was accounted for increase in rent and an amount of ₹.40,38,576/- accounted for increase in professional fees.
Accordingly, by considering the submissions of the assessee, the ld. CIT(A) allowed the relief to the extent of ₹.84,52,290/- out of the total disallowance of excess expenditure claimed by the assessee and disallowed by the Assessing Officer to the tune of ₹.5,19,21,230/- and the balance disallowance of ₹.4,34,68,940/- was confirmed.
4.1 Before the Tribunal, the assessee has not filed any details of its claim of expenditure, which was confirmed by the ld. CIT(A). What were the assessee accounted and claimed before the ld. CIT(A), after verification of the details, the ld. CIT(A) has allowed the expenditure. Thus, we find no infirmity in the order passed by the ld. CIT(A) and accordingly, the grounds raised by the assessee are dismissed in the absence of any details/proof relating to the excess claim of expenditure.
In the result, the appeal filed by the assessee is dismissed. Order pronounced on 12th April, 2022 at Chennai.