ACME Housing India Private Ltd. Vs ACIT (ITAT Mumbai)
In the matter abovementioned ITAT remanded back the matter to CIT (A) after observing that assessee was not able to attend the hearing before CIT (A) due to mismanagement of its state of affair.
Assessee is engaged in the business of real estate and filed its return at Nil. AO observed that assessee had claimed depreciation on goodwill amounting to Rs. 40,24,09,376/- for which assessee had debited Rs. 70,02,958/- on account of interest on delayed payment of TDS under the head “Miscellaneous Expenses” grouped in any other expenses. Assessee also claimed deduction for Rs. 3,08,920/- towards interest on delayed filing of TDS return. AO made additions in all respect of all above. CIT (A) upheld the additions made by AO after observing that assessee failed to prove its case even after issuing several opportunities, against whose assessee sought adjournments.
It was submitted before ITAT that assessee was facing financial problems for past several years. In order to consolidate the business and for better management, other companies merged with the assessee by order by NCLT. Due to which, its employees who were looking after accounts and taxation work had left the job during the period when the notices for hearing were issued. Subsequently, new employees were engaged to look after the accounts and taxation work who took time to get knowledge. This situation was explained before CIT (A) while seeking adjournments. Assessee also filed affidavit of the director and prays for one more opportunity. On the other hand, revenue questioned the irresponsible approach of the assessee for not complying the opportunity before CIT (A).
