ODD LIFE LIVING STYLE PRIVATE LIMITED,MUMBAI vs. ITO WARD 2(2), NASHIK

आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee arises out of the order dated 01-10-2019 passed by the CIT(A)-2, Nashik in relation to the assessment year 2012-13 confirming disallowance of Sales promotion expenditure of Rs.24,81,750/-. 2. Tersely stated, the facts of the case are that the assessee furnished its return declaring total income of Rs.29,33,900/-. Despite notices, the assessee did not put in appearance before the AO during the assessment proceedings. This led to passing of the assessment order u/s.144 of the Act, resulting into disallowance of Rs.84,76,617/- on account of Sales Promotion expenses. The assessee furnished certain details/evidence in support of the expenditure during the first appellate proceedings. The ld. CIT(A) called for the remand report from the AO. On the basis of the remand report and other relevant material, he sustained the addition at Rs.24,81,750/- towards payment made to M/s.

During the remand proceedings, the AO tried to ascertain the genuineness of the transaction by issuing notices u/s.133(6) and 131 of the Act, which were not responded to by the party. The ld. AR submitted that M/s. Universal Expositions Ltd., though did not respond at the material time, but was ready to co-operate if another opportunity is given to the assessee to substantiate genuineness of the expenditure. Considering the entirety of the facts and circumstances of the case, we are of the considered opinion that if would be in the fitness of the things if the impugned order is set-aside and the matter is restored to the file of the AO for deciding this issue afresh after affording reasonable opportunity of hearing to the assessee.