HIM Restaurants Private Limited Vs ITO (ITAT Delhi)
Discrepancies in Returns & Non-production of Books Prove Fatal for Assessee- No Evidence, No Relief: Restaurants Loses Appeal Before Tribunal
AO, after noticing discrepancies between service tax returns & income declared in ITR, rejected the books of account u/s 145(3). It was observed that during October 2013 to March 2014, no income from hall booking was reported. Further, purchases from ABR Foods & Snacks Pvt. Ltd. raised doubts, unsecured loans were treated as unexplained cash credits, & disallowance was made for delayed deposit of employees’ contribution to PF/ESIC.
On appeal, CIT(A) upheld rejection of books & confirmed all additions except deleting disallowance relating to delayed PF/ESIC payments.
Before Tribunal, despite repeated notices, Assessee did not appear. Considering facts, Tribunal held that once books were rejected & Assessee failed to produce evidence at any stage, additions sustained by CIT(A) could not be disturbed. Accordingly, the Tribunal found no merit in the appeal & dismissed it.
Thus, the additions stood confirmed except the relief already granted by CIT(A) regarding PF/ESIC.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal has been preferred by the assessee against order dated 26.03.2018 of the learned Commissioner of Income Tax (Appeals)-4, New Delhi, (hereinafter referred to as ‘ld. CIT(A)’) in appeal No.751/16-17/CIT(A)-4, arising out of order passed u/s 143(3) r.w.s. 145(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Income Tax Officer, ward 11(3), New Delhi, pertaining to Assessment Year 2014-15.
