ANJ TURNKEY PROJECTS PRIVATE LIMITED,MUMBAI vs. NFAU/DCIT, CIRCLE-4(1)(1)
Facts
The Assessing Officer made an addition of Rs.29,02,044/- to the assessee's business income as unexplained. The assessee, despite being given four opportunities, failed to comply or file any adjournment application before the Ld. Commissioner. Consequently, the Ld. Commissioner passed an ex-parte order.
Held
The Tribunal noted that the assessee failed to provide confirmation letters or a reconciliation statement regarding the bad debts written off. While the assessee did not deserve leniency, the Tribunal decided to grant one more opportunity for the assessee to substantiate the liability and the payment of the amount. The assessee was also directed to file a reconciliation statement with documentary evidence.
Key Issues
Whether the assessee should be granted another opportunity to prove the genuineness of bad debts written off, especially when the initial appeal was decided ex-parte due to non-compliance.
Sections Cited
143(3), 144B, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “A”, 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 09.10.2023, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2020-21.
2 ITA No.4442/M/2023 M/s. ANJ Turnkey Projects Private Limited
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.
3 ITA No.4442/M/2023 M/s. ANJ Turnkey Projects Private Limited
In the result, the appeal filed by the assessee stands allowed for statistical purposes.
Order pronounced in the open court on 28.06.2024.
Sd/- Sd/- (OMKARESHWAR CHIDARA) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER
* Kishore, Sr. P.S.
Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench
//True Copy//
By Order
Dy/Asstt. Registrar, ITAT, Mumbai.
