Kokila Cotton Export Ltd Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that assessee satisfactorily explained non-production of documents before lower authorities. Accordingly, ex-parte order passed is set aside and matter is remanded back to AO for fresh consideration.
Facts- The main ground in these appeals is disallowance made u/s. 40(a)(ia) of the Act on account of non-deduction of TDS u/s. 195 of the Act for the commission payments made to foreign agents. It is undisputed fact that the assessee company is engaged in export business for the earlier assessment years as well as subsequent assessment years and the commission expenses paid to foreign agents is recurring in nature.
Notably, during the appellate proceedings, the assessee company due to its financial problems and loan recovery proceedings initiated by State Bank of India could not participate before the Appellate Authority as well as before the Assessing Officer. However the relevant details are now placed before us.
Conclusion- Held that the assessee demonstrated before us the financial crisis faced from State Bank of India and the various orders passed by Debts Recovery Tribunal from time to time. Further the Notarized Affidavit filed by the Director and assessee’s Chartered Accountant explained the above positions. Thus we are satisfied with the explanations offered by the assessee of not producing the documents before lower authorities. In the above circumstances, we deem it fit to entertain the additional documents filed under Rule 29 of ITAT Rules. However the appellate orders being exparte orders, in the above circumstances without expressing our views on merits of the case, we deem it fit to set aside the matter to the file of Jurisdictional Assessing Officer to look into the additional documents filed before us and pass assessment orders in accordance with law by giving proper opportunity of hearing to the assessee. Needless to say, the assessee should cooperative by filing all relevant materials before the Assessing Officer to decide the case on merits.
