Takshashila Realties Pvt Ltd Vs ACIT (ITAT Ahmedabad)
In the appeal of Takshashila Realties Pvt Ltd vs. ACIT, the ITAT Ahmedabad reviewed a case where the Commissioner of Income Tax (Appeals) had confirmed several additions to the assessee’s income for Assessment Year 2010-11 without providing an opportunity for a hearing. The additions included disallowance of a Section 80-IB deduction of Rs. 2.93 crores, an adjustment to book profits under Section 115JB amounting to Rs. 2.86 crores, and additional labor expenses of approximately Rs. 63 lakhs. The appellant claimed that they could not attend the hearing because the notices were sent to a former employee, leading to non-receipt of important communications. The ITAT found that the lack of notice constituted a breach of natural justice. Therefore, the tribunal set aside the ex parte order and remanded the case to the CIT(A) for reconsideration, allowing the appellant to present their case with a proper opportunity. The ITAT emphasized the need for the CIT(A) to give a fair hearing and directed the assessee to ensure timely responses to future notices.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Centre (in short “NFAC”), Delhi under Section 250 of the Act, vide order dated 22.02.2024, for Assessment Year 2010-11, wherein the CIT(A) had confirmed the additions made by the Assessing Officer regarding disallowance of claim of deduction under Section 80-IB of the Act (amounting to Rs. 2.93 crores), upheld adjustment to book profits computed under Section 115JB of the Act (amounting to Rs. 2.86 crores) and upheld addition of labour expenses (amounting to Rs. 63 lakhs approximately).
