Grand Nothing Hills Hotel & Resorts Pvt. Ltd., based in New Delhi, filed an appeal against the ACIT, Circle 10(2), challenging the order passed by the Ld. CIT(A)-4 on January 2, 2019. The dispute centers around significant additions made under the heads of ‘Electrical goods expenses’ and ‘Furniture & fixtures’ during the assessment year 2015-16.
The appellant raised multiple grounds in their appeal, particularly focusing on the non-speaking order passed by the CIT(A), which did not adequately address the evidences provided. Key objections included:
During the tribunal proceedings, both parties agreed on the facts presented by revenue authorities; hence, they were not reiterated for brevity. The appellant’s counsel argued that the CIT(A) overlooked crucial evidences, which warranted a re-evaluation. The tribunal, recognizing the oversight and the non-speaking nature of the initial order, decided to set aside the issues back to the CIT(A). The directive was to reassess the matter comprehensively, ensuring the appellant’s evidences were thoroughly examined.
The ITAT, led by Shri H.S. Sidhu, allowed the appeal for statistical purposes and mandated a fresh evaluation by the CIT(A). This case highlights the critical need for tax authorities to provide clear, reasoned decisions in their orders, particularly when substantial financial adjustments are involved. The decision underscores the judiciary’s role in ensuring that appellants receive a fair hearing and that their evidences are duly considered.
Grand Nothing Hills Hotel & Resorts vs. ACIT: Dispute Over Electrical and Furniture Expenses
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