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Facts
The Assessing Officer made an addition of Rs.3,71,584/- on account of sale transactions. The Assessee challenged this addition and the reopening of the case. However, the Assessee failed to comply with various notices and provide substantive documents.
Held
The Tribunal noted the Assessee's non-compliance and the consequent affirmation of the addition and reopening by the lower authorities. Despite this, considering the facts and for substantial justice, the Tribunal decided to remand the case.
Key Issues
Whether the addition made by the AO and the reopening of the case were justified, and whether the Assessee's non-compliance warrants leniency.
Sections Cited
143(3), 147, 148
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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI OMKARESHWAR CHIDARA
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 24.11.2023, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ the Ld. Addl/Joint Commissioner of Income Tax (Appeals) (in short “Ld. Addl./Joint Commissioner”) for the A.Y.
2013-14.
In the instant case, the Assessing Officer (AO) vide order dated 28.12.2018 u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short ‘the Act’) has made the addition of Rs.3,71,584/- being 16.6% of the sale transactions of Rs.22,27,723/-. The Assessee, being aggrieved, challenged the said addition as well as reopening of the case u/s 147/148 of the Act before the Ld. Addl./Joint Commissioner, however, in spite of sending various notice, the Assessee made no compliance and therefore in the constrained circumstances, the Ld. Addl./Joint Commissioner not only affirmed the reopening of the case u/s 147 of the Act but also affirmed the addition for not submitting any substantive documents by the Assessee qua its claim. Resultantly due to fault of the Assessee, the issue involved qua addition remained to be adjudicated in its right perspective and proper manner and therefore, the Assessee do not deserve any leniency. However, considering the peculiar facts and circumstances of the case in totality for the just decision of the case and substantial justice, we are inclined to remand the instant case to the file of the Ld. Addl./Joint Commissioner for decision afresh, suffice to say by affording reasonable opportunity to the Assessee to substantiate its case.
We clarify that in case of further default the Assessee shall not be entitled for any leniency. Thus, the case is remanded to the file of the Ld. Addl./Joint Commissioner accordingly.
In the result, the appeal filed by the Assessee stands allowed for statistical purposes.
Order pronounced in the open court on 30.08.2024.