In the case of Neobrix Consulting Pvt. Ltd. vs DCIT, Central Circle, Noida, the appellant contested several additions and rejections of deductions by the IT authorities. This appeal, heard by the Delhi Bench ‘E’ of the Income Tax Appellate Tribunal, focused on procedural faults and evidentiary disputes.
The appeal challenges the order dated October 31, 2018, by the CIT(A)-IV, Kanpur. Key issues included the alleged failure to quash the assessment order despite procedural lapses and the dismissal of deductions related to business penalties and unverified loans despite evidence presented during remand.
The appellant argued that the assessment order was flawed as it was issued without a timely notice under section 143(2) of the Income Tax Act, claiming protection under section 292 BB. Additionally, significant disputes involved the additions of Rs. 10,00,000 and Rs. 1,00,00,000, claimed as loans from individuals and corporations, which were not accepted due to alleged insufficient confirmation and evidence of transactions.
The tribunal noted inconsistencies in the handling of documentary evidence. It remanded the case to the CIT(A), emphasizing the need for a thorough re-examination of the evidence and proper procedural conduct to ensure fairness in the assessment process.
The final judgment remanded the case for further review, allowing the appeal for statistical purposes. This decision underscores the importance of adherence to procedural norms and the critical role of comprehensive documentation in tax assessments.
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