Coper Co-operative Sugar Limited Vs ITO (ITAT Surat)
The appeal before the Income Tax Appellate Tribunal (ITAT), Surat, arose from an order dated 20.02.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (CIT(A)), Delhi, under section 250 of the Income-tax Act, 1961, for Assessment Year (AY) 2014–15. The assessee challenged both the procedural and substantive aspects of the appellate order.
The assessee filed its return of income for AY 2014–15 on 26.09.2014, declaring a loss of ₹40,183. The case was selected for scrutiny under CASS. During assessment proceedings, the Assessing Officer (AO) issued notices under sections 143(2) and 142(1), calling for details and explanations on various issues. The assessee furnished responses on multiple dates through its Managing Director.
Upon examination, the AO noted discrepancies and raised queries relating to purchase quantity of sugarcane, alleged suppression of yield, claim of additional depreciation, transportation expenses, cane development expenses, interest income, and differences in creditors. After considering the submissions, the AO passed an order under section 143(3) on 23.12.2016, making additions and disallowances aggregating to ₹16,84,48,981. After set-off of brought forward unabsorbed depreciation, total income was assessed at ₹16,38,15,260 as against the returned loss.
Aggrieved, the assessee filed an appeal before the CIT(A). During appellate proceedings, the CIT(A) issued multiple notices dated 23.12.2020, 24.08.2022, and 21.10.2022, calling upon the assessee to file written submissions. The assessee responded only once by seeking adjournment, which was granted, and a final opportunity was provided vide notice dated 19.04.2023. However, no submissions or documentary evidence were filed thereafter.
