Case Overview: This appeal, filed by Arison Associates Pvt Ltd, contests the orders made by the Income Tax Officer and upheld by CIT(A)-I, New Delhi, concerning the income estimation for the assessment year 2016-17.
Date and Judges: The final order was issued on March 30, 2022, by Shri R.K. Panda, Accountant Member of the Delhi Bench ‘SMC’.
Background: Arison Associates Pvt Ltd, a private limited company, filed this appeal against the order dated October 10, 2019, passed by CIT(A)-I, New Delhi. The company was dissatisfied with the additional income estimation of Rs.45,83,199 made during its assessment for the year 2016-17.
Hearing Dynamics: Despite several notices, no representative for Arison Associates appeared during the tribunal hearing. The absence was noted alongside the return of registered letters with remarks indicating non-locatability of the appellant at the provided address. Due to lack of new address updates and repeated non-compliance, the tribunal proceeded ex parte.
Assessment Details: Originally, the company declared an income of Rs.38,880 for the year. However, scrutiny revealed undeclared investments and advances amounting to Rs.7,97,99,134. Applying a profit rate of 7%, the Assessing Officer estimated a resultant income of Rs.55,85,939. After accounting for declared interest income, an addition of Rs.45,83,199 was confirmed by CIT(A).
Tribunal Decision: The tribunal, after reviewing the records and in absence of any substantial defense from the assessee, upheld the CIT(A)’s decision. The lack of compliance and failure to substantiate the significant amount of undeclared investments led to the confirmation of the additional income estimation.
Conclusion: The tribunal dismissed the appeal, emphasizing the importance of compliance and accurate declaration in tax assessments. The order was pronounced in open court, reiterating the finality of the additional income assessment for Arison Associates.
Order Pronouncement: The order was pronounced in the open court on March 30, 2022, by R.K. Panda, solidifying the stance on tax compliance and accountability in corporate financial declarations.
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