What did the Tribunal hold?

The Tribunal, in the interest of justice, decided to remand the matter back to the CIT(A). The assessee is granted one final opportunity to substantiate its case before the CIT(A).

The assessee's appeal concerns an addition of Rs. 66,66,667/- made by the AO and upheld by the CIT(A) on account of lease rent paid. The assessee did not appear before the Tribunal, and the CIT(A) had sustained the addition due to non-compliance by the assessee.

What were the issues?

The primary issue is the disallowance of lease rent paid by the assessee and the assessee's failure to provide necessary details to substantiate the claim.

Godavari Shilpkala Hospitality… vs ITO | ITAT Delhi 2017

Income Tax Appellate Tribunal, DELHI BENCH “SMC”, NEW DELHI

Before: SHRI R. K. PANDA

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER Assessment Year : 2013-14 Godavari Shilpkala Hospitality ITO, Pvt. Ltd. Vs. Ward-10(2), New Delhi New Delhi PAN : AADCG0213B (Appellant) (Respondent) : Assessee by None Revenue by : Sh. Amit Jain, Sr. DR Date of hearing : 25-10-2017 Date of pronouncement : 27 -10-2017 O R D E R PER R. K. PANDA, AM :

This appeal filed by the assessee is directed against the order dated 26th May, 2017 of the CIT(A)-4, New Delhi relating to assessment year 2013-14. 2. Addition of Rs. 66,66,667/- made by the AO on account of lease rent paid by the assessee and upheld by the CIT(A) is the only issue raised by the assessee in the grounds of appeal

. 2.1. None appeared on behalf of the assessee. Therefore, this appeal is being decided on the basis of material available on record and after hearing the Ld. DR.

3. After hearing the ld. DR and on perusal of the orders of the AO and the CIT(A). I find the Assessee filed its return of income on 28th September, 2013 declaring loss of Rs. 29,32,935/-. The AO completed the assessment on a total income of Rs. 4,60,062/-. In the said order apart from making various additions, the AO made addition of Rs. 66,66,667/- by disallowing the lease rent paid by the assessee. In appeal the ld. CIT(A) sustained the addition on the ground that the assessee did not furnish the details and there was non-compliance on the part of the assessee before him.

4. In my opinion and considering the totality of the facts of the case and in the interest of justice the matter requires a re-visit to the file of the CIT(A) with a direction to give one final opportunity to the assessee to substantiate its case. The assessee is hereby directed to appear before the CIT(A) to substantiate its case and not to seek any adjournment. The ld. CIT(A) shall decide the issue in accordance with law after giving due opportunity of being heard to the assessee. I hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

5. In the result, appeal filed by the assessee is allowed for statistical purposes. (Order pronounced in the Open Court on 27/10/2017.

GODAVARI SHILPKALA HOSPITALITY PVT. LTD.,NEW DELHI vs. ITO, WARD- 10(2), NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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