Shree Construction Vs ITO (ITAT Pune)
Shree Construction challenged an assessment order for AY 2013-14, which resulted in a significant income adjustment due to alleged discrepancies in tax deducted at source (TDS). The Assessing Officer (AO) determined that the firm failed to deduct TDS on expenses amounting to ₹4.05 crore, leading to an addition of ₹6.52 crore to the total income. The assessee’s appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] was dismissed as the firm failed to provide supporting documents. However, the assessee argued that it was not given a fair opportunity to present its case, citing unavoidable circumstances and errors in tax audit reporting.
Upon review, the Income Tax Appellate Tribunal (ITAT) Pune found that CIT(A) had denied adjournment requests without proper reasoning and relied heavily on the AO’s assessment. ITAT held that in the interest of justice, the case should be reconsidered, allowing the assessee to submit the required evidence. The matter was remanded to CIT(A) for fresh adjudication, instructing the assessee to actively participate and avoid unnecessary adjournments. ITAT also permitted CIT(A) to seek a remand report from the AO, ensuring a thorough review before a final decision is made. The appeal was allowed for statistical purposes.
