ITAT directed JET to pay cost for failure to comply with various notices issued by lower authorities

Jet Airways (India) Limited Vs DCIT (ITAT Mumbai)

ITAT Mumbai held that assessee going through resolution process has failed to comply with various notices issued by lower authorities. Accordingly, it is directed to give one last opportunity to present their case before AO. Assessee is also directed to pay the cost for being delinquent before lower authorities.

Facts- Pursuant to the survey action u/s. 133A of the Act conducted in the case of the assessee dated 19.09.2018, the assessee’s case was selected for scrutiny, as it was observed that the assessee has entered into a large value international transaction as per Form No. 3CED with its Associated Enterprises (AEs) and also as per the survey report.

The assessee was issued notice u/s. 142(1) of the Act calling for details, documents, evidences, explanation, along with the copy of order u/s. 92CA(3) of the Act seeking for assessee’s explanation as to the transfer pricing adjustment proposed by the TPO. It is observed that inspite of several notices, the assessee has failed to furnish details before the A.O. except for a letter dated 18.02.2021 received from Shri Ashish Chhawchharia, Resolution Professional for Jet Airways (India) Ltd. stating that the assessee company was undergoing Corporate Insolvency Resolution Process (CRIP for short) as per Insolvency and Bankruptcy Code, 2016 as directed by the Hon’ble National Company Law Tribunal (NCLT for short) vide order dated 20.06.2019, seeking for the assessment proceedings to be kept as abeyance.

However, AO passed a draft assessment order u/s. 143(3) r.w.s. 144C(1) by making various additons. TPO/A.O. proceeded to bench mark the international transactions and specific domestic transaction of the assessee, thereby making an adjustment Notably, AO has made the impugned addition of Rs.4246,81,14,783/- under the normal provisions, which was more than that of the income computed u/s. 115JB of the Act, wherein the income under the normal provision was considered for computing the tax liability of the assessee company. Being aggrieved, the present appeal is filed.

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