Sanjay Kejriwal Vs DCIT/ACIT (ITAT Ranchi)
The Income Tax Appellate Tribunal (ITAT), Ranchi, allowed the assessee’s appeal for statistical purposes by restoring the matter to the Assessing Officer (AO) for fresh adjudication after holding that the addition had been made without proper verification and without giving the assessee an opportunity of being heard. The Tribunal also condoned a delay of 106 days in filing the appeal after accepting the assessee’s explanation that he was unaware of the appellate proceedings before the National Faceless Appeal Centre (NFAC) and became aware of the order only upon receipt of a penalty show cause notice.
The assessment for Assessment Year 2016-17 was completed under Section 143(3), determining total income at ₹57,00,866 as against the returned income of ₹27,91,480. The AO disallowed ₹29,09,386 claimed as bank charges and interest against income from other sources, holding that the same expenditure had already been claimed in the Profit and Loss Account and therefore amounted to a double deduction.
The assessee challenged the disallowance, contending that no double deduction had been claimed and that the AO had made the addition without verifying the records, including the Profit and Loss Accounts of the assessee in his individual capacity and proprietary concern. The appeal before the Commissioner of Income Tax (Appeals) was dismissed ex parte due to the assessee’s non-appearance despite several opportunities.
