KAMAT YATRINIVAS PVT LTD., ,BENGALURU vs. INCOME TAX OFFICER, WARD-4(1)(2),, BENGALURU

In the instant case, the Assessee had declared its total income of Rs.88,97,130/- by filing its return of income on dated 3.12.2017, which was selected for ‘Complete Scrutiny’ under CASS and therefore statutory notices were issued to the Assessee. In response, the Assessee filed its financial statements and other various documents as mentioned in para No.3 of the Assessment Order. On perusing the same, the Assessing Officer (in short ‘AO’) ultimately made the following additions:-

The Assessee being aggrieved challenged the aforesaid additions before the ld. Commissioner, who though granted various opportunities by sending notices to the Assessee, however, the Assessee made no compliance and availed none of the opportunities. Therefore on failure of the Assessee to respond at multiple occasions, it was observed by the ld. Commissioner that the Assessee is not serious to pursue its appeal, as it has not provided any explanation or evidence in support to the grounds of appeal and constrained to uphold the decision made by the AO for want of explanation and documentary evidence as well as on merit

The Assessee being aggrieved is in appeal before and reiterated its claim. On the contrary, the Learned Departmental Representative refuted the claim of the Assessee.

Heard the parties and perused the material available on record. Though the conduct of the Assessee do not seems to be reasonable and explainable as the Assessee, inspite of affording various opportunities, failed to substantiate its appeal before the ld. Commissioner. However considering the peculiar facts and circumstances of the case in totality, as in absence of the relevant reply/documents, the issues before the ld. Commissioner remained to be un-adjudicated on merits, hence taking a lenient view and for the just decision of the case and substantiatial justice, we are inclined to remand the instant case to the file of the ld. Commissioner for decision on merit, suffice to say by affording reasonable opportunity to the Assessee to substantiate its case.

We are also inclined to direct the Assessee to file the relevant documents/reply before the ld. Commissioner in support of its claim and to co-operate with the appellate proceedings before the ld. Commissioner and in case of further default, the Assessee shall not be entitled for any leniency.