M/s The Tajpur Rice & General Mills, Ludhiana V. ITO, W-2, Ludhiana

ITA 1252/CHANDI/2019

AI Insights

This case involves an appeal by M/s Tajpur Rice & General Mills against the order of the ld. CIT(A)-3, Ludhiana, which upheld the additions made by the Assessing Officer (AO) during the reassessment for the assessment year 2014-15. The AO had made several disallowances totaling Rs. 25,21,330 due to unvouched business expenditures, issues with sundry creditors, and non-payment of TDS on freight expenses, among others. The assessee did not appear before the AO or the CIT(A) during most of the hearings, leading to the CIT(A) upholding the AO's additions. The Income Tax Appellate Tribunal (ITAT) decided to set aside the matter to the CIT(A) for a fresh examination, providing the assessee another opportunity to present their case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127491 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-06-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 12-09-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business expenditure; TDS
• Section: 144

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’ CHANDIGARH BEFORE: SHRI A.D.JAIN, VICE PRESIDENT AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 1252/CHD/2019 नधा रण वष / Assessment Year : 2014-15 M/s Tajpur Rice & General Mills, B-34/2622, New Tagore Nagar, Haibowal Kalan, Ludhiana. VS The ITO, Ward 2, Jagraon. थायी लेखा सं./PAN /TAN No: AAAFT6190J अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : None राज व क ओर से/ Revenue by : Shri Akashdeep, JCIT, Sr.DR तार ख/Date of Hearing : 20.06.2023 उदघोषणा क तार ख/Date of Pronouncement : 21.06.2023 आदेश/ORDER PER VIKRAM SINGH YADAV,A.M. This is an appeal filed by the assessee against the order of ld. CIT(A)-3, Ludhiana dated 26.06.2019 pertaining to assessment year 2014-15. 2. None appeared on behalf of the assessee. The brief facts of the case are that the original assessment was completed u/s 143(3) of the Act vide order dated 16.03.2016 at an income of Rs.15,39,200/-. Thereafter, the ld. PCIT-3 Ludhiana vide order u/s 263(1) dated 20.07.2017 set aside the assessment. After that, fresh assessment proceedings were initiated by way of ITA 1252/CHD/2019 A.Y. 2014-15 Page 2 of 3 issuing the notice u/s 142(1)/143(2) of the Act alongwith questionnaire. In response to which, the ld AR appeared and filed written reply dated 27.12.2018, however, no books of account and vouchers were produced. The AO, thereafter, concluded the assessment u/s 144 of the Act at an income of Rs.40,60,530/- by making the following additions: i) Disallowance of Rs.5,00,000/- on account of unvouched business expenditure ii) Disallowance of Rs. 10,00.000/- on account of sundry creditors. iii) Disallowance of Rs. 5.00,000/- on account of expenses claimed on commission and discount. iv) Disallowance of Rs. 21,330/- on account of 1/10 lfi disallowance of expenses incurred on car loan and telephone etc. v) Disallowance of Rs. 5,00,000/- on account of non payment of TDS on freight expenses. 3. At the time of appellate proceedings, again the assessee did not furnish any written submission/documentary evidence in support of various grounds of appeal taken by it. Ultimately, the ld. CIT(A) upheld the additions amounting to Rs.25,21,330/- made by the Assessing Officer against which the assessee is in appeal before us. 4. During the courses of hearing, the ld. Sr. DR is heard. It is noticed that the assessee did not appear before Assessing Officer as well as before ld. CIT(A) on most of the dates fixed for hearing. However, considering the entirety of facts and circumstances of the case and in the interest of justice, we deem it appropriate that the assessee deserve one more opportunity and the matter is set-aside to the file of ld CIT(A) to examine the ITA 1252/CHD/2019 A.Y. 2014-15 Page 3 of 3 same afresh as per law after providing reasonable opportunity to the assessee. 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21.06.2023. Sd/- Sd/- आकाश द प जैन !व#म %संह यादव (AAKASH DEEP JAIN) (VIKRAM SINGH YADAV) उपा(य) / VICE PRESIDENT लेखा सद+य/ ACCOUNTANT MEMBER “Poonam” आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2. 灹瀄यथ牸/ The Respondent 3. आयकर आयु猴/ CIT 4. िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड榁 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar