AO Didn’t Enquire, CIT(A) Did; Ad-Hoc Additions Crumble; Proper Evidence Beats Estimate

ACIT Vs Chitavalasah Jute Mills Ltd (ITAT Agra)

Assessee’s return for AY 2012-13 was assessed ex-parte u/s 144 r.w.s.143(3) with large ad-hoc additions-40% disallowance of sundry creditors Rs.11,90,27,242, disallowance of interest Rs.99,69,661, depreciation Rs.67,84,622 & other expenses Rs.12,76,916.

In the first round Tribunal remanded matter to CIT(A) to examine additional evidence. In the second round   Assessee furnished complete ledgers, schedules & explanations; AO

Please become a Premium member. If you are already a Premium member, login here to access the full content.