Case Number: ITA 2320/DEL/2022
Appellant: Shakeel Ahmed, Proprietor, Meerut
Respondent: ACIT, Circle-1(1)(1), Meerut
Assessment Year: 2018-19
Case Filed on: 2022-09-22
Order Type: Final Tribunal Order
Date of Order: 2023-07-31
Pronounced on: 2023-07-31
Shakeel Ahmed, a business proprietor from Meerut, faced an assessment challenge related to his return of income for the assessment year 2018-19. The core issue revolved around a significant addition made by the AO amounting to Rs. 17,25,758, attributed to unverified expense claims relating to salary, audit fees, and other operational costs.
The case was selected for scrutiny, and during the proceedings, the assessee was unable to provide sufficient documentary evidence to support the expenses claimed. This led to an addition by the AO, which was subsequently upheld by the CIT(Appeals). Seeking relief, Shakeel Ahmed appealed to the Income Tax Appellate Tribunal (ITAT) in Delhi.
During the tribunal hearings, the primary argument from the assessee centered around the inability to produce documentary evidence due to various reasons, including potential mismanagement and oversight. The tribunal, led by Judicial Member Shri Kul Bharat, noted that the appeal was processed ex-parte as the assessee did not appear, and decided on the merits of the documentary evidence presented.
The ITAT recognized the need for a fair hearing and adequate opportunity to present supporting evidence. Consequently, the matter was remanded back to the AO for a fresh assessment. This decision highlights the tribunal’s approach to ensuring justice by allowing the assessee a further chance to substantiate the claims.
The case underlines the importance of maintaining proper records and the challenges that can arise when documentation is lacking in the scrutiny of tax returns.
Order pronounced in open court on July 31, 2023.
Dispute on Expense Claims by Shakeel Ahmed, Meerut for AY 2018-19 – ITA 2320/DEL/2022
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