Case Number: ITA 5911/DEL/2019
Appellant: Mascot Securities Ltd, New Delhi
Respondent: ITO, Ward-16(3), New Delhi
Assessment Year: 2010-11
Order Type: Final Tribunal Order
Date of Order: 2022-06-17
Pronounced On: 2022-06-17
Case Filed On: 2019-07-08
This appeal, filed by Mascot Securities Ltd, is directed against the order dated 7th May 2019 of the CIT(A)-6, Delhi, relating to the Assessment Year 2010-11. The case involves the disallowance of expenses amounting to Rs. 3,82,278/- due to the failure of the appellant to provide necessary documentation.
The grounds of appeal raised by the assessee are as follows:
“1. That on the facts and circumstances of the case and the provision of the law, the Ld CIT (A) has failed to appreciate that the impugned order passed by the Ld AO under Section 147 of the Income Tax Act is illegal and bad in law.
2. That on the facts and circumstances of the case and the provisions of law, the Ld CIT (A) has erred in sustaining the disallowance of expenses of Rs. 3,82,278/-.”
Mascot Securities Ltd did not file its return of income for the assessment year 2010-11, despite having taxable income. Consequently, the assessment was reopened by issuing a notice under Section 148 of the Income Tax Act. The assessee did not comply initially but later filed a return on 17th June 2017 declaring an income of Rs. 1,82,802/-.
The AO requested various details regarding the interest income, which were not provided by the assessee. Due to the lack of documentation, the AO rejected the books of account and disallowed the administrative and selling expenses of Rs. 3,82,278/-. This decision was upheld by the CIT(A), leading to the present appeal.
The case was heard by the Delhi Bench “SMC” of the Income Tax Appellate Tribunal (ITAT) on 19th May 2022. The Tribunal consisted of Shri Challa Nagendra Prasad, Judicial Member. The Tribunal noted that despite several notices, there was no appearance or response from the appellant.
The Tribunal reviewed the submissions of the Senior DR, who argued that the assessee did not maintain proper books of account or provide necessary evidence to substantiate the claimed expenses. The DR highlighted that the Profit & Loss account and balance sheet were prepared much later and did not comply with the requirements under Section 44AD of the Act.
The Tribunal found no reason to interfere with the findings of the lower authorities, as the assessee failed to provide any evidence to support its claims. The Tribunal upheld the disallowance of the expenses.
In conclusion, the ITAT dismissed the appeal due to the appellant’s failure to provide necessary documentation and evidence supporting the claimed expenses.
Order: The appeal of the assessee is dismissed.
Pronounced on: 17th June 2022
Judicial Member: Challa Nagendra Prasad
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Asstt. Registrar, ITAT, New Delhi
Mascot Securities Ltd vs ITO, Ward-16(3), New Delhi – Appeal Dismissed for Lack of Documentation
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