×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
The Assessee has filed the Appeal against the Order dated 05.1.2018 of the Ld. CIT(A)-2, New Delhi pertaining to assessment year 2014-15 on the following grounds:-
Being aggrieved by the order of the AO and the Ld. CIT(A), the appellant craves leave to prefer appeal on the grounds, without prejudice to one another, as follows:-
A. In the facts and circumstances of the case and in law and in violation of the principles of natural justice, the order of the Ld. CIT(A) is perverse in law and on facts on the following grounds:
A.1 The Ld. CIT(A) erred in dismissing the appellant’s request for admission of additional evidence.
A.2 The Ld. CIT(A) erred in not considering the appellan ’s reply to the remand report of the AO.
B. In the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming the addition of Rs. 6,88,115/- on account of disallowance of expenses.
C. In the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming the addition of Rs. 22,00,000/- on account of share capital and share premium.
The appellant craves leave to alter, amend, add, modify, delete grounds of appeal before or at the time of hearing before this Hon’ble Tribunal.
2. The brief facts of the case are that assessee filed ereturn of income on 30.11.2014 declaring loss of Rs. 7,42,003/-. The return of the assessee was processed u/s. 143(1) of the Income Tax Act, 1961 (In short “Act”). Subsequently, the case was selected for scrutiny under CASS and notice u/s. 143(2) of the Act dated 28.8.2015 was issued. As per information available on the official website of India Post, the notice was delivered at the registered address of the assessee on 03.9.2015.
Thereafter, several notices, including questionnaire u/s. 142(1) of the Act were issued from time to time. However, there was no compliance on the part of the assessee. None attended the proceedings. Nor were any written communications received. Finally, a show cause notice u/s. 144 of the Act was issued to the assessee on 2.11.2016 and in response to the same a written submission was received from the A.R. of the assessee, seeking more time for furnishing details / documents as called for and accordingly the case was adjourned to 23.11.2016 and thereafter to 01.12.2016. The AR finally attended the proceedings on 20.12.2016 and thereafter on 26.12.2016. However, beyond copies of certain bills, no details / documents were furnished. Again he sought time till 28.12.2016, stating that all the Directors were abroad and therefore, one final opportunity may be granted.
Accordingly, the case was fixed for hearing on 28.12.2016, but the AR did not attend the proceedings on the said date. Despite the aforesaid show cause putting the assessee on notice that the proceedings shall be completed exparte in the event of non-compliance, the assessee has chosen to remain silent. Considering such continued noncompliance and the fact that the proceedings are getting barred by limitation on 31.12.2016, the AO has no option but to complete the proceedings u/s. 144 of the Act and made the addition of Rs. 6,85,115/- on account of