M/S. MAHARASHTRA SOLVENT EXTRACTION PVT. LTD,JALGAON vs. PRINCIPAL COMMISSIONER OF INCOME TAX - 1, NASHIK

This is an appeal filed by the assessee directed against the order of ld. Pr. Commissioner of Income Tax- 1, Nashik (‘the PCIT’) dated 12.03.2021 for the assessment year 2016-17.

Briefly, the facts of the case are that the appellant is a company incorporated under the provisions of the Companies Act, 1956. It is engaged in the business of extraction of Soyabean Oil. The return of income for the assessment year 2016-17 was filed on 17.10.2016 declaring total income of Rs.69,40,600/-. Against the Dy. Commissioner of Income Tax, Circle-1, Jalgaon (‘the Assessing Officer’) vide order dated 21.12.2018 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) at total income of Rs.85,21,990/- after making (a) disallowance u/s 40A(3) of Rs.4,92,634/-, (b) disallowance u/s 36(1)(iii) of Rs.6,89,023/- and (c) disallowance of expenditure of Rs.4,00,000/-. Subsequently, on verification of the assessment record, the ld. PCIT formed an opinion that the assessment order is erroneous and prejudicial to the interests of the revenue on the ground that the Assessing Officer without examining had allowed the claim of set off of speculative loss against profit earned and, accordingly, issued show-cause notice dated 01.03.2021 requiring the appellant to show-cause as to why the assessment order cannot be set-aside. On receipt of the said notice, the appellant had sought an adjournment of hearing of appeal through e-mail on the Income Tax Department’s website portal, which reads asunder :- “Our income tax consultant is not available at this time due to COVID- 19. Hence, we seek adjournment in hearing of the notice by 15 days.” 3. However, the ld. PCIT without disposing of the adjournment petition had proceeded with passing of the order u/s 263 and had