Smt. Neelu Sanjay Gupta Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that entire assessments has been restored to the file of CIT(A) for de novo consideration since assessee was found to be absolutely non-cooperative and took every step to thwart/stonewall the assessment proceedings.
Facts-A search u/s. 132 of the Income Tax Act, 1961, carried out at the premises of Neesa Group on September 8, 2010. Neesa Group was being managed by the assessee, late Shri Sanjay Gupta. A search warrant was authorized for the assessee’s premises and a proceedings u/s. 153A of the Act were initiated. However, the assessee remained non-compliant to several notices issued by the Department. AO observed that throughout the assessment proceedings, there was lack of cooperation from the assessee in providing necessary documents and explanations required for the completion of assessment. Accordingly, AO made various additions and the total assessed income was determined by AO at Rs. 1,84,36,610/-.
CIT(Appeals) confirmed the additions since the assessee contiuned to remain con-cooperative, failed to furnish necessary documentation / evidences in support of it’s contentions and did not furnish proper explanation with respect to any of the additions made by the AO. Being aggrieved, the present appeal is filed.
Conclusion- On the basis of incriminating material found during the course of search proceedings at the premises of the assessee and other group companies, the Special Auditor observed substantial discrepancies between the material found during the course of search, the statement of certain parties taken during the course of search and the books of accounts maintained by the assessee, which were found to be fallacious. Accordingly, in light of these facts, certain information was sought from the assessee during the course of assessment proceedings by the Special Auditor, but the assessee was found to be absolutely non-cooperative. The assessee took every step to thwart/stonewall the assessment proceedings, including filing of writ petition challenging the validity of search proceedings as well as challenging the validity of appointment of special auditor in this case. However, the Hon’ble Gujarat High Court, taking into consideration the assessee’s particular set of facts, dismissed both the writ petitions filed by the assessee, thereby validating the initiation of search proceedings as well as appointment of special auditor, looking into assessee’s particular set of facts. Thus, the entire assessments have been restored to the file of Ld. CIT(Appeals) for de novo consideration, after giving due opportunity of hearing to the assessee to present its case on merits along with supporting documents/evidences in respect of each addition made, this legal arguments/issue is also restored to the file of Ld. CIT(Appeals) for his consideration, for carrying out due enquiries on the precise date when the case records were received by the assessing officer of Technodot and thereafter, to decide the applicability of the judicial precedents relied upon by the assessee, to the assessee’s particular set of facts.
