Spray Engineering Devices Ltd. Vs ITO (ITAT Chandigarh)
Fresh Tax Hearing, 300 Trees: ITAT Remands ₹3.59 Crore Dispute With a Green Condition
Reasoned Adjudication Required Despite Non-Compliance
The Chandigarh ITAT restored a company’s appeal involving ₹3.50 crore added under Section 68 and ₹8.75 lakh under Section 69C to the CIT(A), holding that the assessee’s failure to respond to hearing notices did not dispense with the requirement to decide its grounds through a reasoned order.
The Tribunal also imposed an unusual condition: the company must plant 300 trees of Indian or native origin at its own cost, maintain them and furnish evidence of compliance during the fresh appellate proceedings.
The appeal was allowed for statistical purposes. The validity of reopening, genuineness of the share-sale transaction, alleged commission expenditure and adjustment against brought-forward losses remain undecided.
Share-Sale Receipts Became an Accommodation-Entry Dispute
The assessee, engaged in manufacturing and engineering activities, filed its return on 30 September 2013, declaring a loss of ₹9,50,80,496.
The original assessment under Section 143(3) was completed on 29 February 2016, determining income at nil.
Subsequently, the Assessing Officer received information from the Investigation Wing concerning Shri Pradeep Kumar Jindal, who was alleged to have provided accommodation entries through various front companies.
