Sentrise Construction LLP Vs DCIT (ITAT Bangalore)
ITAT Bangalore: Assessee Gets One More Chance – Ex-Parte Dismissal by CIT(A) Set Aside with Cost
Assessee, engaged in construction business, filed its return of income on 15.02.2022 which was picked up for scrutiny on account of low net profit & receipts u/s 194M. AO issued multiple notices u/s s 143(2), 142(1) & 133(6). While some details were furnished, several notices went unanswered & many of the parties did not respond to enquiries. AO, therefore, disallowed expenses claimed under various heads including spot booking discounts, commission, compensation to employees & professional fees, treating them as unsubstantiated, & completed the assessment making additions.
On appeal, CIT(A) issued six notices but Assessee neither responded nor filed written submissions. Appeal was accordingly decided ex-parte & the disallowances were upheld. Assessee then approached Tribunal with a delay of 42 days, explaining the reasons for delay & filing supporting documents to demonstrate genuineness of its expenditure. Tribunal condoned the delay considering that Assessee possessed evidence to contest the disallowances.
At the hearing, Assessee pleaded that relevant documents were not properly appreciated by the lower authorities & sought another opportunity. The Revenue, however, relied on the orders of the AO & CIT(A).
