Date Filed: 2019-03-08
Type of Order: Final Tribunal Order
Date of Order: 1970-01-01
Pronounced On: 1970-01-01
The Income Tax Appellate Tribunal Delhi heard the case ITA No. 2086/DEL/2019 on the appeal filed by the Appellant, ACIT Circle-29(1), New Delhi against the Respondent, VISBA, New Delhi regarding the assessment for the year 2015-16. The case revolved around various expenses claimed by VISBA which were scrutinized and partly disallowed by the Assessing Officer (AO), leading to an appeal to the CIT(A) and subsequently to the Tribunal.
The firm, engaged in the export of Brassware and other items, declared an income of Rs. 97,14,390 for A.Y. 2015-16. Following a scrutiny assessment, the AO issued a notice under section 143(2) of the Income Tax Act, highlighting non-compliance by the assessee in producing relevant ledgers and bills. This resulted in an addition of Rs. 3,28,63,157 to the P&L account.
After considering the additional evidence submitted during the appellate proceedings, the CIT(A) made deletions to the additions except for a 10% ad hoc addition to vehicle running expenses and a complete disallowance of the claimed donation expenses. The Tribunal, upon review, upheld the CIT(A)’s decision, emphasizing that the introduction of additional evidence was justified and the appellant’s failure to produce evidence at the assessment stage was not sufficient to warrant a reversal of the CIT(A)’s decisions.
The Tribunal dismissed the appeal by the Revenue, holding that the evidence and justifications provided during the appellate proceedings were sufficient to overturn most of the additions made by the AO. This case highlights the critical role of proper documentation and the impact of appellate proceedings on assessment orders.
Legal Analysis of ACIT Circle-29(1), New Delhi vs. VISBA, New Delhi for AY 2015-16
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