Remsons Industries Ltd. Vs ACIT (ITAT Mumbai)
Two Days to Defend 48 Service Providers Is Hardly a Fair Hearing—ITAT Restores Addition Where Evidence Filed Before CIT(A) Was Ignored
The controversy
The assessee, Remsons Industries Ltd., was engaged in manufacturing automobile parts. For AY 2021-22, it filed its return declaring a total income of ₹6,09,86,420.
The case was selected for complete scrutiny principally because of large payments attracting TDS u/s 194J and the mismatch or comparison between the payments reported under the assessee’s TAN and the returns filed by the corresponding recipients whose PANs appeared in Form No.26Q.
During assessment, the AO issued notices u/s 143(2) & 142(1), followed by show-cause notices. Though the assessee partly complied with the notices, it could not furnish confirmations and supporting documents relating to all the concerned service providers within the time allowed.
The AO consequently made additions in respect of the disputed payments and completed the assessment u/s 143(3) r.w.s. 144B on 28 December 2022.
Notices issued at the finishing line
The assessee’s principal grievance was that the final show-cause notices were issued immediately before the assessment was completed.
The show-cause notice dated 15 December 2022 required compliance by 17 December 2022. Another notice dated 19 December 2022 required compliance by 21 December 2022. The assessment order was thereafter passed on 28 December 2022.
