Failure to Comply CIT(A)'s Intimations despite Adequate Opportunity being Given: ITAT dismisses Ex-Parte Order Grounds [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal ( ITAT) dismissed the ex-parte order on grounds of failure to comply with the CIT(A)'s intimations, despite being given adequate opportunity.

The assessee filed its return of income on 30.10.2014 declaring income of Rs. 10,68,800/- and it was processed under Section 143(1) of the Income Tax Act. The assessee during the year under consideration declared net profit of Rs. 10, 68, 769/- against the turnover of Rs. 21, 67, 61,571/- i.e. 0.49% of total turnover

 The assessee preferred the appeal before the Tribunal raising, AO determining the net profit of the assessee on estimated basis @ 8% on the net turnover without rejecting its books of account filed by the assessee

 Sunil Surana, representing the  assessee contended that addition made by the AO on estimated basis @  8% on turnover of Rs. 21,67,61,571/- was  not sustainable since  while doing so, the ld. AO did not reject the books of account filed  by the assessee for the assessment year in question.  In preceding years i.e. A.Y. 2012-13 & 2013-14 net profit of the assessee had shown 0.22% to 0.19% respectively which was accepted by the AO. Therefore, the addition made by the AO should be rejected and direction may be given to AO by allowing net profit at 0.49% on the turnover which will arrive at Rs. 10,68,800/-. 

Tribunal consisting , Manish Borad ( Accountant member) and Sonjoy Sharma ( Judicial member) observed that the appellant claimed  that the impugned order was passed ex-parte without affording proper reasons or opportunities to the assessee.

However, upon careful review, the ITAT found no merit in these contentions. It was observed that both lower authorities provided ample opportunity for the assessee to present their case. Despite this, the assessee failed to comply with the requirements set by the authorities. Consequently, appeal dismissed

To Read the full text of the Order CLICK HERE

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