ANJ TURNKEY PROJECTS PRIVATE LIMITED,MUMBAI vs. NFAU/DCIT, CIRCLE-4(1)(1)

In this case, the Assessing Officer (AO) vide order dated 20.09.20222 under section 143(3) read with section 144B of the Act has made the addition of Rs.29,02,044/- under the head “Business Income” as unexplained. The assessee, being aggrieved, preferred first appeal before the Ld. Commissioner who though afforded four opportunities to the assessee, however, the assessee neither made any compliance nor filed any adjournment application. Therefore, in the constrained circumstances, the Ld. Commissioner decided the appeal of the assessee by passing the impugned order as an ex-parte. As the assessee failed to file confirmation letters or reconciliation statement etc. in order to show the reason for treating the amount of Rs.29,02,044/- as bad debts written off, therefore the assessee does not deserve any leniency. However, considering the peculiar facts and circumstances in totality and the fact that relevant confirmation qua written off of the debts is essential for proper adjudication of the issue under consideration, therefore, for the just decision of the case and for substantial justice, we are inclined to afford one more opportunity to the assessee to substantiate/prove that the liability still exists as on the date in the books of accounts of the creditors and the assessee has paid the amount in the subsequent years. The assessee should also file the reconciliation statement along with documentary evidences. Hence, the case is remanded to the file of the Ld. Commissioner accordingly.