SHAKEEL AHMED,MEERUT vs. ACIT, CIRCLE-1(1)(1), MEERUT

None put in appearance on behalf of the assessee despite issue of notice for hearing. It reveals from the record that the assessee has not been attending the proceedings since 15.11.2022. Therefore, I proceed to dispose of the appeal, ex parte, qua the assessee.

The only effective ground raised by the assessee in its appeal relates to the addition of Rs. 17,25,758/- made by the AO and confirmed by the learned CIT(Appeals) u/s 69 of the Income-tax Act, 1961 (the “Act”).

Facts, in brief are that the assessee filed his return of income on 5.10.2018 declaring total income at Rs. 19,85,830/-. The case was selected for scrutiny assessment. The AO completed the assessment u/s 143(3) of the Act at Rs. 37,11,588/- by making addition of Rs. 17,25,758/- on account of assessee’s failure to produce supporting documentary evidence for provision of expenses claimed.

I have heard learned DR and perused the material available on record. The stand of the assessee before the authorities below was that the expenses in question related to salary, audit fees, accounting charges, electricity expenses and printing expenses etc. The authorities below disallowed the claim of the assessee on the ground that assessee failed to produce the supporting evidence in form of bills/vouchers in support of its claim. Looking to the facts and circumstances of the case and to subserve the substantial interest of justice in my considered view it would be fair and reasonable to both the parties to restore the matter to the file of AO to decide the issue afresh after affording reasonable opportunity to the assessee of hearing and to adduce relevant documentary evidence in support of its claim. I order accordingly.

Appeal of the assessee is allowed for statistical purposes only.