Ashok Ghelabhai Patel Vs ITO (ITAT Mumbai)
In the case of Ashok Ghelabhai Patel vs. ITO, the assessee appealed against an order issued by the Ld. CIT(A)-NFAC, Delhi, concerning the Assessment Year 2018-19. The appeal primarily arose from a disputed demand of ₹94,54,898, following an assessment that significantly increased the reported income. The initial return filed by the assessee indicated an income of ₹9,14,570, but upon scrutiny, the Assessing Officer (AO) noted substantial discrepancies, particularly concerning reported commission receipts totaling ₹1,85,43,071 and salary expenses of ₹10,08,000. The AO’s efforts to obtain supporting documentation from the assessee were unfruitful, leading to disallowances of these expenses and a final assessment income of ₹2,04,64,741.
During the appellate proceedings, the Ld. CIT(A) upheld the AO’s disallowances, stating that the assessee failed to provide necessary evidence justifying the claimed expenses. The appellant contended that the assessment was flawed due to the absence of a mandatory draft assessment order, as stipulated under section 144B of the Income Tax Act. Moreover, the appellant argued that the expenses were legitimate business costs, properly recorded, and supported by ledger entries. However, the opposing counsel pointed out that the assessee had been given ample opportunity to present evidence but failed to do so, thereby opposing further chances for submission.
