Case Law Details
Bona Sera Hospitality Pvt. Ltd Vs DCIT (ITAT Mumbai)
Introduction: The case of Bona Sera Hospitality Pvt. Ltd vs. DCIT came before the Income Tax Appellate Tribunal (ITAT) in Mumbai. The appeal was against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2011-12, dated March 24, 2023.
Detailed Analysis: The primary contention of the assessee was the CIT(A)’s partial allowance of the appeal, directing the Assessing Officer (AO) to verify additions of Rs.1,91,956/- and Rs.4,74,558/-. Additionally, the assessee disputed the non-deletion of Rs.3,67,773/-, the amount that couldn’t be reconciled.
The AO, relying on the AIR information and finding discrepancies in the 26AS statement, directed the assessee to reconcile the income. Despite reconciling a significant portion, a mismatch of Rs.8,42,331/- remained, leading to an addition of Rs.10,34,287/- by the AO. The CIT(A) partially allowed the appeal, directing the deletion of Rs.6,66,514/-.
The assessee argued that reconciling 1100 out of approximately 1200 items was a substantial effort, and the remaining discrepancy was due to unintentional mistakes, urging against additional tax. The appellant highlighted its substantial revenue, the nature of its business, and the difficulty in reconciling all entries.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
