2014 (9) TMI 935

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....filed return of income declaring loss of Rs. 23,16,095/- on 16.11.2006. The same was processed u/s 143(1) of the Income-tax Act, 1961 on 24.07.2007. Subsequently, the case was selected for scrutiny and notices u/s 143(2) and 142(1) were issued. The Assessing Officer while making order u/s 143(3) disallowed Rs. 51,810/- from share capital, Rs. 35,521/- from unsecured loans and addition of Rs. 40,082/- was made on account of customs duty and also disallowance of Rs. 1,69,524/- u/s 40(a)(ia) for non-deduction of TDS on freight & cartage. Thus, the additions and disallowance are made on the following counts :- (i) Addition u/s 68 on account of unexplained Share capital and unsecured loan (Rs.51,810/- & Rs. 35,521/- respectively) Rs. 87....

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.... on 31.10.2011 but none attended. Further, notices dated 02.03.2012 and 25.05.2012 were issued fixing the date for hearing on 21.03.2012 and 30.05.2012 respectively, however, these dates were also remained uncomplied with. In view of these facts, the CIT (A) has no other alternative but to decide the appeal ex-parte on merits. In view of this, we uphold the order of CIT (A) and dismiss this ground of assessee's appeal. 5. Ground Nos.2 & 3 of the assessee's appeal read as under :-            "2. That on the facts and circumstances of the case, the learned CIT (A) erred in upholding the penalty of Rs. 99,949/- imposed by Income Tax Officer.         3....