DIY FURNITURES PRIVATE LIMITED,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-1(1)(2), AHMEDABAD
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Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: Smt. Annapurna Gupta & Shri T.R. Senthil Kumar
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member
ITA No. 909/Ahd/2023 Assessment Year 2017-18 DIY Furniture Pvt. Ltd. Income Tax Officer, B/2, Surajkala, Ward-1(1)(2), Raj Colony, Vs Ahmedabad Nr. Naranpura Railway Crossing, Naranpura, Ahmedabad-380013 PAN: AAECT4996R (Respondent) (Appellant) Assessee Represented: None Revenue Represented: Shri Ashok Kumar Suthar, Sr.D.R. Date of hearing : 28-08-2024 Date of pronouncement : 11-09-2024 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-
This appeal is filed by the Assessee as against the ex-parte appellate order dated 20.09.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the assessment order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2017-18.
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Today is the sixth time of hearing of the appeal, however none appeared on behalf of the assessee. Earlier Shri Paras F. Jain appearing for the assessee withdrawn his Letter of Authority as he is not getting instructions from the briefing Counsel as the assessee is not cooperating by furnishing relevant documents to him. This was recorded on 22.04.2024 and adjourned to 25.04.2024 giving one more opportunity to the assessee. However none appeared again notices sent by RPAC fixing the case for hearing on 21.05.2024. Though the notice was served none appeared on behalf of the assessee and no papers filed before us except the grounds of appeal. The Grounds of Appeal reads as follows: 1. The Learned CIT(A) has grievously erred in law and on facts in upholding the additions of Rs.3,30,27,919 on the ground of non-response of the notices issued in as much as that the notices were not properly served to the appellant. 2. The learned CIT(A) has erred in law and on facts in not appreciating the explanations and the evidence produced before the A.O. 3. He has erred in law and on facts in upholding the under mentioned additions/disallowances: a): Un-explained loans: Rs.1,42,18,500. b): Interest on said loans: Rs. 2,54,688. c): Expenses of circular trading: Rs. 92,21,212. d): Disallowance u/s. 40(a)(ia) Rs. 87,47,637. e): Disallowance u/s. 37. Rs. 5,85,882. Total Rs.3,30,27,919. 4. On the facts of the assessee no such additions/disallowances of Rs.3,30,27,919 ought to have been made and loss of Rs.2,32,27,048 shown by the assessee as per return of income ought to have been accepted. 5. On the facts of the assessee no interest u/s. 234-A, 234-B and 234-C ought to have been levied.
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The appellant craves leave, to add, to alter and/ or modify any ground of appeal.
Hence with the assistance of Ld. Sr. D.R. the case is disposed of as follows:
3.1. The brief facts of the case are that the appellant is a Company filed its Return of Income declaring a loss of (-)Rs.2,32,27,048/-. The return was taken up for scrutiny assessment. The A.O. noticed that unsecured loans amounting to Rs.52,96,55,138/- were received from 21 parties. Out of them, the A.O. found that no details were furnished so far as six parties aggregating to Rs.1,42,18,500/- which is discussed in Para 3.6 of the assessment order. In spite of show cause notice issue to the assessee, the assessee failed to furnish details about the six parties. Therefore the Assessing Officer made addition of Rs.1,42,18,500/- as unexplained cash credit u/s. 68 of the Act and also disallowed interest amounting to Rs.2,54,688/-. On perusal of sales, register, purchase register and bank statement it was noticed that the assessee was involved in circular trading and booked bogus sales/purchases amounting to Rs.8,03,86,350/-. Since the assessee failed to furnish documents proving the genuineness and creditworthiness of the purchases/ sales, therefore the expenditure of Rs.92,21,212/- was disallowed u/s. 40A(2) of the Act and added to the total income of the assessee.
3.2. Similarly, the Assessing Officer made disallowance u/s. 40(a)(ia) of Rs.87,47,637/-. The Assessing Officer also disallowed expenses claimed by the assessee are capital in nature and
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therefore disallowed the same u/s. 37 of Rs.5,85,882/- and determined the total income as Rs.1,44,73,190/- and demanded tax thereon.
Aggrieved against the same, the assessee filed an appeal before Ld. CIT(A) who was given opportunity of hearing on 23.02.2021, 17.07.2023 and 10.08.2023. Since the assessee failed to comply the hearing notices by neither filing an adjournment request nor filing the details, the appeal was dismissed ex-parte.
Aggrieved against the ex-parte order, the assessee is in appeal before us. However no details or Paper Books filed by the assessee. The Ld. Counsel Shri Paras F. Jain appearing for the assessee in the above case has also withdrawn his Letter of Authority since he is not getting instructions or relevant documents from the assessee. Since the assessee failed to produce relevant documents even before the Lower Authorities as well as before us. In the absence of any material before us, we are unable to adjudicate the case on merits.
In the result, the appeal filed by the Assessee is dismissed for non-prosecution.
Order pronounced in the open court on 11-09-2024 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 11/09/2024 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee
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Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद
