Mindspace Ventures Limited Vs ITO (ITAT Pune)
69A Addition – Corporate Card Payments Not Examined- Justice over Technicalities- Non-Speaking NFAC Order- Tribunal Orders Fresh Assessment Opportunity – Remands to AO
Assessee, a company, did not file return u/s 139(1). Reopening was made u/s 147 based on information that Assessee had paid Rs.2,68,07,425/- towards credit-card bills & earned interest income of Rs.3,66,957/-. AO issued notice u/s 148 on 15.04.2021. Due to non-compliance to statutory notices, AO completed reassessment ex-parte u/s 147 r.w.s. 144 & 144B on 22.05.2023 determining total income at Rs.2,71,74,380/- by treating credit-card payments as unexplained money u/s 69A r.w.s. 115BBE & taxing interest income u/s 56.
Before CIT(A)/NFAC, Assessee filed complete details, explaining that two corporate credit cards (limits Rs.50 lakh & Rs.10 lakh) were operated by authorised persons Sunil Patel & Aparna Chandole, & payments represented transfers from company’s SBI account to these cards during FY 2014-15. CIT(A), however, dismissed appeal without discussing submissions & simply upheld AO’s order.
Before Tribunal, Assessee argued that all evidence was on record before CIT(A) & that a reasonable opportunity was not granted. Assessee also submitted that, if remanded, it can substantiate the source & nature of credit-card payments. Tribunal noted that CIT(A) had passed a non-speaking order & failed to consider documents placed on record. Since additions were made solely due to non-compliance, Tribunal held that interest of justice required a fresh examination.
