ARUN KUMAR CHATURVEDI,KANPUR vs. DY.CIT-3, KANPUR

This appeal has been preferred by the assessee against order dated 02.01.2024 passed by the National Faceless Appeal Centre (NFAC), Delhi for Assessment Year (AY) 2014-15 wherein, the assessee’s appeal has been dismissed in limine for the reason of non compliance.

“1. BECAUSE, on the facts and in the circumstances of the case, the ex-parte order passed by the Ld. Commissioner of Income Tax (Appeals) Dt. 02.01.2024partly allowing the appeal of the assessee is liable to be set-aside to the extent it upheld the action of assessing officer in making additions to the income of the assessee. The impugned order is non- speaking qua the additions sustained in it. Further the CIT(A) has itself granted substantial appeal in the case of the assessee for A.Y. 2014-15, however has refused relief on same transactions in this year.

2. BECAUSE, on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) has manifestly erred in fact and in law in failing to appreciate that addition made by AO under Section 41 of the Act, for a sum of Rs 5,92,290/-, concerning Industrial Casting Corporation has been deleted by the CIT(A) while adjudicating the case of the assessee for A.Y. 2013-14 as unsustainable; however a meager addition was confirmed which has been assailed in appeal before this Hon'ble ITAT for that year. Further, in any view the matter, the impugned addition is wholly illegal and bad in law as these transactions have absolutely no bearing on the taxable income of the assessee. It is a discharge of liability of the assessee as appearing in its books of account trough cash or assignment of debt. There is no tax impact and hence there is no occasion to cause any addition on that score and is also resulting in double taxation of same transaction which is impermissible.

3. BECAUSE, on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) has erred in fact and in law while confirming an addition of Rs. 90,368/-is wholly illegal and bad in law as these transactions have absolutely no bearing on the taxable income of the assessee. It is a discharge of liability of the assessee as appearing in its books of account trough cash. There is no tax impact and hence there is no occasion to cause any addition on this score.

4. BECAUSE, on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) has erred in fact and in law while confirming an addition of Rs 73,028 & 4,07,000/- on account of cash paid to Alka & Company for Rs. 73,028 and transferring its liability to M/s Neelam Construction [Rs. 4,07,000/-] is wholly illegal and bad in law as these transactions have absolutely no bearing on the taxable income of the assessee. It is a discharge of liability of the assessee as appearing in its books of account trough cash or assignment of debt. There is no tax impact and hence there is no occasion to cause any addition on that score.

6. BECAUSE, on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) has grossly erred in confirming an addition of Rs 10,69,723/- on account of credit purchases from Technical Power Corporation. The addition is wholly illegal and bad in law as the assessee was not granted any opportunity to defend its case and findings of a different year have been plastered over assessee, arbitrarily. There is no known law that mere non-service of summon would result in drawing adverse Inference. The assessee was not afforded opportunity to defend its case as no adverse material was confronted and enquiry made behind the back of the assessee has been utilized to sustain the impugned addition.

7. BECAUSE, on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) has erred in law and in facts while sustaining the addition of Rs 57,004 on account of cash paid to Chandra & Company ignoring the fact that this transactions has absolutely no bearing on the taxable income of the assessee. It is a discharge of liability of the assessee as appearing in its books of account trough cash. There is no tax impact and hence there is no occasion to cause any addition on this score.

8. BECAUSE, on the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) has erred in law and in facts while sustaining the addition of Rs 5,367 on account of cash paid to Glorious Electricals ignoring the fact that that this transactions has absolutely no bearing on the taxable income of the assessee. It is a discharge of liability of the assessee as appearing in its books of account trough cash. There is no tax impact and hence there is no occasion to cause any addition on this score.