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Facts
The assessee, a Non-Banking Financial Company, had its assessment reopened under Section 147 of the I.T. Act. The Assessing Officer made additions of Rs. 20,71,249/- for undisclosed interest income, despite TDS being claimed, and Rs. 2,29,073/- as 1% commission for allegedly providing entries. The CIT(A) upheld these additions and dismissed the assessee's appeal.
Held
The Income Tax Appellate Tribunal dismissed the assessee's appeals. The Tribunal noted that despite multiple hearing dates, no representation was made on behalf of the assessee, and no material was presented to justify any interference with the CIT(A)'s orders. Consequently, the impugned orders of the CIT(A) were upheld.
Key Issues
1. Whether additions for undisclosed interest income and commission for providing entries were justified. 2. Whether the initiation of penalty proceedings under section 271(1)(c) was premature.
Sections Cited
Section 147, Section 143(3), Section 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, LUCKNOW BENCH ‘A’, LUCKNOW
Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRA
(A) These three appeals have been filed by the assessee pertaining to assessment years 2014-15, 17-18 and 18-19 against impugned appellate orders dated 30/11/2023 (DIN & Order No.ITBA/APL/S/250/2023- 24/1058365951(1), dated 08/12/2023 (DIN & Order No.ITBA/APL/S/250/ 2023-24/1058606785(1) and dated 08/12/2023 (DIN & Order No.ITBA/APL/S/250/2023-24/1058606785(1) respectively of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].
, 48 & 49/Lkw/2024 Asstt. Years:2014-15, 17-18 & 18-19 2 (B) The facts of the case, in brief, are that the assessee is a Non- Banking Financial Company engaged in share trading and investment business. The company provides short term and long term loans/advances to body corporate and thereby earns interest on it. The assessee’s case was reopened u/s 147 of the I. T. Act. The assessee is assessed to tax and filed its return of income. The Assessing Officer completed the assessments and made various additions against which the assessee went in appeal before the learned CIT(A). The learned CIT(A) dismissed the appeal of the assessee observing as under:
, 48 & 49/Lkw/2024 Asstt. Years:2014-15, 17-18 & 18-19 3 , 48 & 49/Lkw/2024 Asstt. Years:2014-15, 17-18 & 18-19 4 , 48 & 49/Lkw/2024 Asstt. Years:2014-15, 17-18 & 18-19 5 (C) During the course of hearing, none was present on behalf of the assessee. In the past also the appeals were fixed for hearing on 29/04/2024, 05/08/2024, 10/09/2024, 25/11/2024, 02/01/2025, 06/03/2025, 03/06/2025, 21/07/20254, 01/09/2025, 03/11/2025 and 18/12/2025 on which dates either the hearing was adjourned on the request of the assessee or there was no representation from the assessee’s side. On 18/12/2025 also, when the hearing was last fixed, none was present on behalf of assessee. In the absence of any representation from the side of the assessee, learned Departmental Representative for Revenue was heard, who relied on the orders of the authorities below. On careful perusal of the 48 & 49/Lkw/2024 Asstt. Years:2014-15, 17-18 & 18-19 6 impugned order of the learned CIT(A), and other materials on record, no infirmity is found in it. No material has been presented from either side to justify any interference with or modification of the impugned orders of learned CIT(A). Therefore, the impugned orders of learned CIT(A) are upheld and the appeals are dismissed.
(D) In the result, all the appeals of the assessee are dismissed.
(Order pronounced in the open court on 05/01/2026)