In a recent ruling, the Income Tax Appellate Authority ( ITAT ) bench at Ranchi remanded an income tax matter because CIT(A) did not specify the reason for the dismissal of the appeal.
In this case, the assessee, MD Yasin Construction Pvt. Ltd., had filed its Income Tax Return (ITR) on 31.03.2017, declaring total income at Rs. 2,31,08,550/-.
The ITR was processed under Section 143(1) of the Income Tax Act, 1961(ITA), and the case was selected for limited scrutiny through CASS (Computer Assisted Security Selection).
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The Assessing Officer (AO) had issued a notice under Section 143(2) of the Income Tax Statute. But the notice was not complied. The AO also imposed penalty under Section 271(1)(b) of the
Even subsequent notices were not compiled by the taxpayer. The AO concluded the assessment under Section 144 of the Act, estimating the net profit at 10% of the assessee’s total revenue (Rs 28,57,88,098/-), and after considering the disclosed income of Rs 2,31,08,550/-, added the difference of Rs 54,70,260/- to the total income of the assessee.
Aggrieved by the order of AO, the assessee approached the Commissioner of Income Tax (Appeals) [CIT(A)]. The assessee filed nine grounds of appeal against the AO’s addition.
The assessee did not produce the books of account or any other documentary evidence for the AO to make a proper analysis of its books of accounts. CIT(A) did not challenge the AO’s estimate and upheld the order.
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Later on, the assessee approached ITAT for relief. The ITAT bench observed that the assessee may be given de novo consideration in accordance with the principles of natural justice.
The bench comprising of Partha Sarathi Chaudhury and Prabhash Shankar, thus remanded the income tax order due to the non-mentioning of the reason for dismissal of the appeal by CIT(A).
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