Case Law Details
Comfortable Abode Private Limited Vs ACIT (ITAT Bangalore)
Introduction: In a recent case between Comfortable Abode Private Limited and the Assistant Commissioner of Income Tax (ACIT), the Income Tax Appellate Tribunal (ITAT), Bangalore, directed re-adjudication. The tribunal held that the assessment proceedings completed by the National Faceless Appeal Centre (NFAC) Delhi did not give sufficient opportunity to the assessee.
Analysis: The case originated with the assessment for the year 2016-17, wherein the company had declared a current year loss. Following scrutiny and notices, the assessment was finalized with an assessed loss of a lower amount. Dissatisfied, Comfortable Abode appealed before NFAC, which confirmed the assessment order due to the assessee’s non-compliance with the hearing notices.
The assessee then appealed to ITAT, claiming that they were not provided sufficient opportunities to represent their case. They also challenged the addition of notional interest on property advance and the disallowance under section 36[1][iii] of the Act.
The ITAT, after considering the submissions, ruled in favor of the assessee, in part, agreeing that there was a lack of sufficient opportunity for the company to represent its case. It ordered a fresh decision to be made after providing an opportunity for the assessee to be heard.
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