NAGAUR WATER SUPPLY CO. PVT. LTD.,AHMEDABAD vs. THE DCIT, CIRCLE-3(1)(1), AHMEDABAD

The ground of appeal raised by assessee reads as under:

In this case, assessee has claimed depreciation of plant and machinery and electric installation to the tune of Rs.31,30,871/- and assessee has claimed administrative and other expenses to the tune of Rs.14,88,673/-. As per Tax Audit Report in Form 3CD, the assessee company had deducted TDS on various payments, but not deposited in Government Account. The total payments comes to Rs.4,07,44,709/-. However, in the computation of income the assessee itself disallowed Rs.3,52,30,000/-. For this issue, assessee was asked to show cause as to why remaining Rs.55,14,709/- should not be disallowed under S.40(a)(ia) of the Act. Apart from abovementioned, as per Tax Audit Report, assessee company has not deposited the following statutory payment before the due date of filing of return under S.139(1) of the Act: a) TDS Rs.36,31,058 Water Supply Co. Pvt. Ltd. Vs. DCIT] A.Y. 2014-15 - 3 - b) Service Tax Rs.469,283 c) Professional Tax Rs.2,200 But, despite of the fact that several notices were issued by the learned AO, the assessee did not appear before him. Since, there was no cooperation on behalf of the assessee, therefore, under S.144 of the Act, learned AO disallowed the following amount:

Against the disallowance made by the AO, assessee preferred first statutory appeal before the learned CIT(A) but assessee did not file the complete detail before the learned CIT(A). Thereafter on the basis of material available on record, learned CIT(A) passed an order.

Now, assessee has come before us against the order of learned CIT(A) by way of a second statutory appeal.

We have heard learned DR. As it appears from the records that after filing of the appeal none appeared on behalf of the assessee. It appears from the record that there is no business transaction in the company since 2014. Therefore, in the interest of justice, we would like to give one more chance to the assessee as assessee suffered with loss and is not functioning. Therefore, in the interest of justice, we set aside this matter back to the file Water Supply Co. Pvt. Ltd. Vs. DCIT] A.Y. 2014-15 - 4 - of the learned CIT(A) subject to the condition that assessee shall deposit a penalty of Rs.1000/- with the department as assessee has wasted precious time of the lower authorities. The same shall be deposited with the Department within 60 days from the receipt of the order.

Since the proceedings have been restored to the file of the learned CIT(A), it will be proper to give direction him to provide reasonable opportunity to the assessee. If despite of providing opportunities, the assessee does not co-operate in the matter, then learned CIT(A) will be at liberty to adjudicate the matter as per law.

In the result, the appeal filed by the Assessee is allowed for statistical purposes.