Amizara Construction Pvt. Ltd. Vs ITO (ITAT Surat)
The Surat Bench of the Income Tax Appellate Tribunal (ITAT) disposed of two appeals filed by the assessee for Assessment Years (AYs) 2010–11 and 2012–13, arising from separate appellate orders passed under section 250 of the Income-tax Act, 1961 by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (CIT(A)). With the consent of both parties, the appeals were clubbed and heard together, with ITA No. 1206/SRT/2024 for AY 2010–11 treated as the lead case.
For AY 2010–11, the assessee company had not filed its return of income. Based on departmental information, substantial cash deposits were noticed in the assessee’s ICICI Bank account during the financial year 2009–10. The bank statement reflected cash deposits of ₹1,10,63,500, while total cash and credit entries aggregated to ₹1,56,64,322. The case was reopened under section 147, and notice under section 148 was issued on 31 March 2017. The assessee did not file a return or any submissions in response.
During assessment proceedings, notice under section 142(1) was issued to a director of the company, who stated that the company was no longer in existence, as its name had been struck off by the Registrar of Companies (ROC) with effect from 21 June 2017. It was further stated that the cash deposits represented funds generated by discounting the company’s own cheques due to shortage of funds, and that no records were available as the company’s affairs were handled by her husband, who had since passed away. No documentary evidence was produced to support these claims.
