This article provides an in-depth analysis of the case ITA 313/DEL/2019, involving Gordon Herbert India Ltd, Kanpur, and the Assistant Commissioner of Income Tax (ACIT), Central Circle-18, New Delhi. The appeal pertains to the assessment year 2001-02 and discusses the reasons behind the dismissal of the appeal due to lack of evidence.
The appellant, Gordon Herbert India Ltd, filed an appeal for the assessment year 2001-02, contesting the order of the learned Commissioner of Income Tax (Appeals) [CIT(A)], New Delhi, dated December 7, 2018. The case was filed on January 17, 2019, and the final tribunal order was pronounced on August 4, 2022.
The primary issue in this case was the appellant’s failure to provide sufficient evidence to substantiate its claims. The Revenue had carried out an action under Section 132 of the Income-tax Act, 1961, in the Usha Group of cases, including the assessee company, on February 14, 2001. Various books of accounts and documents were found and seized during the search.
A notice under Section 158BC of the Act was issued to the assessee, calling for the return of income for the block assessment year. The return was filed, and the assessment for the block period up to the assessment year 2001-02 (up to February 14, 2001) was completed, framing the assessment at Rs. 12,34,40,142/-. However, there was no representation on behalf of the assessee before the Assessing Officer (AO), and the assessment for the period from February 15, 2001, to March 31, 2001, was completed under Section 144 of the Act at Rs. 9,09,680/-.
The appellant contested the addition of Rs. 9,09,675/- made by the AO, claiming it was arbitrary and without any legal basis. However, during the hearing, no one attended the proceedings on behalf of the assessee. The notices of hearing sent to the assessee at the address provided in Form No. 36 were returned with the remark “incomplete address.” As no other address was provided by the assessee, the appeal was taken up for hearing in the absence of the assessee and decided based on the material placed on record.
The Tribunal, presided over by Judicial Member Shri Kul Bharat and Accountant Member Shri Pradip Kumar Kedia, reviewed the submissions and material available on record. The learned CIT(A) had upheld the ex-parte assessment order of the AO, confirming the addition of Rs. 9,09,675/- made on a pro-rata basis as per the assessment order of the block assessment. The Tribunal found no merit in the grounds of the assessee’s appeal due to the lack of relevant evidence to support the claims.
The Tribunal concluded that the appeal filed by Gordon Herbert India Ltd was dismissed due to the lack of evidence. The decision was announced on August 4, 2022, following a virtual hearing.
The case of ITA 313/DEL/2019 highlights the importance of providing sufficient evidence to support claims in tax disputes. The dismissal of the appeal due to lack of evidence underscores the necessity for appellants to furnish all relevant documents and information to substantiate their arguments effectively.
This decision serves as a reminder to taxpayers about the critical role of evidence in tax litigation. It also illustrates the Tribunal’s adherence to the principles of law and due process in adjudicating tax disputes. Taxpayers should ensure that they provide comprehensive and accurate documentation to avoid unfavorable outcomes in similar cases.
In summary, the Tribunal’s order in ITA 313/DEL/2019 demonstrates the necessity for appellants to present substantial evidence to support their claims, providing a valuable reference for future cases involving similar issues.
Appeal Dismissed Due to Lack of Evidence: ITA 313/DEL/2019 – Gordon Herbert India Ltd vs ACIT
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