M/S HOTEL AJAY INTERNATIONAL,ALLAHABAD vs. ACIT, ALLAHABAD

ITA 87/ALLD/2019Status: DisposedITAT Allahabad15 March 2022AY 2015-166 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the computation of gross receipts and the estimation of income required proper verification. Therefore, the matter was set aside to the Assessing Officer for re-adjudication, allowing the assessee an opportunity to furnish relevant details.

What were the facts?

The assessee's return of income was blank, leading to a best judgment assessment under Section 144. The Assessing Officer estimated income at 10% of total bank deposits, which the CIT(A) reduced to 5%. The assessee argued that the turnover and profit rate estimations were arbitrary.

What were the issues?

Whether the best judgment assessment was arbitrary due to incorrect estimation of turnover and profit rate, and whether the notice under Section 143(2) was duly served.

Which sections of the Income-tax Act were involved?

Section 144,Section 143(2),Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ALLAHABAD ‘SMC’ BENCH, ALLAHABAD

Before: SHRI.VIJAY PAL RAO

For Appellant: Mr. Praveen Godbole, C.A
For Respondent: Mr. A.K. Singh, Sr. DR
Hearing: 14.03.2022Pronounced: 15.03.2022

VIJAY PAL RAO, JUDICIAL MEMBER: This appeal by the assessee is directed against the order dated 14.03.2019 of CIT(A) for the assessment year 2015-16. The assessee has raised the following grounds:- “1. That in any view of the matter the assessment made an income of Rs. 41,64,141/- vide order dated 16/11/2017 passed u/s 144 of the Income Tax Act is bad both on the facts and in law and the loss declared in the return should have been accepted.

2.

That in any view of the matter after filing of return no notice u/s 143(2) of the IT act has been served on the assessee which is a mandatory requirement hence entire assessment liable to be declared annulled.

3.

That in any view of the matter ex-parte assessment

The order continues below.

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