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Facts
The Assessing Officer disallowed an expenditure of Rs. 2,10,47,306/- on the grounds that the assessee had already received a building completion certificate. The assessee contended that the certificate was for only 39 out of 41 units and expenditure for the remaining units was still being incurred.
Held
The Tribunal noted that the Ld. CIT(A) passed an ex-parte order due to the assessee's non-compliance. The Tribunal set aside the Ld. CIT(A)'s order and restored the matter to the Ld. CIT(A) for fresh adjudication on merits, allowing the assessee one more opportunity.
Key Issues
Whether the disallowance of expenditure was justified when the building completion certificate was not for all units, and the procedural fairness of an ex-parte order.
Sections Cited
250
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Income Tax Appellate Tribunal, SURAT BENCH, SURAT
Before: DR. B.R.R. KUMAR, VICE-MS SUCHITRA RAGHUNATH KAMBLE
O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:
This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as “Ld. CIT(A)”] dated 10.06.2025, under section 250 of the Income-tax Act, 1961 [in short “the Act”] for the Assessment Year 2013-14.
The Assessing Officer made addition of Rs.2,10,47,306/- on the ground that the assessee has already received the building completion certificate on 17.03.2012 and hence the expenditure incurred by the assessee was disallowed. The assessee submitted that the building completion certificate has been issued only for the 39 units out of the 41 units and expenditure pertaining to the remaining units used to be incurred. On going through the ledgers, since the revenue cannot dispute the factum of incurring the expenditure and the amount has been disallowed only on the basis of building completion certificate has been obtained from disregarding the fact that the order passed by the Assessing Officer disallowing the expenditure cannot be sustained.
Asst. Year: 2013-14 - 2– 3. On perusal of the record, we find that there was no compliance before the Ld. CIT(A). We further note that the Ld. CIT(A) passed an ex-parte order. Before us, the Ld. Counsel for the assessee prayed that one more opportunity may be given to the assessee to contest his case on merits. Hence, in the interest of justice, we set aside the order of the Ld. CIT(A) and restore the matter back to the file of the Ld. CIT(A) for fresh adjudication on merits. The assessee is directed to submit all the relevant bank statement, submission and document before the Ld. CIT(A) without seeking any unnecessary adjournments.
In the result, the appeal of the assessee is allowed for statistical purposes.
The order is pronounced in the open Court on 30.01.2026.