Darwin Platform Industries Limited Vs ITO (ITAT Mumbai)
Non-Prosecution Costs Dear: ITAT Upholds Massive Additions Amid Assessee’s Repeated Non-Appearance
The ITAT Mumbai dismissed the appeals of Darwin Platform Industries Ltd., primarily due to persistent non-compliance and failure to appear despite multiple notices, proceeding to decide the case ex parte based on available records.
For AY 2021–22, the Assessing Officer treated purchases as non-genuine based on GST discrepancies and non-traceable suppliers, ultimately estimating profits at 8% on alleged unaccounted sales and making substantial additions. The Tribunal upheld this action, noting that the assessee failed to produce any cogent evidence to rebut the findings.
For AY 2022–23, the AO treated large trade payables and loans from related parties as bogus and unexplained under Section 69A, observing inconsistencies between books, GST returns, and bank statements. The Tribunal again upheld the additions, emphasizing that the assessee failed to substantiate the genuineness of liabilities or transactions.
A key takeaway from the ruling is that procedural negligence ,such as non-response to notices and failure to furnish evidence, can decisively weaken the assessee’s case, leading to confirmation of significant additions without detailed merits examination.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The captioned appeals by the assessee arise out of two separate orders, both dated 17.06.2025, passed by National Faceless Appeal Centre (NFAC), Delhi (`id. CIT(A)’ for short), pertaining to the Assessment Years (`A.Y.’ for short) 2021-22 and 2022-23.
