TaxTMI 
TaxTMI 
2021 (4) TMI 859
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....iolation of principles of natural justice and liable to be set aside. 1.2 The Commissioner of Income Tax (Appeals) erred in disposing the appeal ex parte unreasonably ignoring the request for adjournment of the hearing. 2.1 The Commissioner of Income Tax (Appeals) erred in sustaining the disallowance made by the AO without adverting to the detailed factual submissions made before him. 2.2 The Commissioner of Income Tax (Appeals) ought to have considered the difficulties faced by the Assessee in furnishing additional evidences before the Assessing officer and ought to have enlarged the time for submission of the remand report. 3.1 The Commissioner of Income Tax (Appeals) went wrong in upholding the order o....
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....ses when compared to the earlier year, the AO vide office notice u/s. 142(1) of the Income Tax Act, 1961 (hereinafter the 'Act') dated 24.02.2015, has called upon the assessee to file details of expenditure along with supporting bills and vouchers. In response, the authorized representative of the assessee submitted ledger copy of the pond and farm maintenance expenses, however not filed supporting bills and vouchers but claimed that expenditure debited under the head 'pond and farm maintenance expenses' is paid to farmers and allowable as deduction u/s. 40A(3) r.w.rule 6DD(e) of the Income Tax Rules, 1962 (hereinafter the 'Rules'). 4. The AO, however was not convinced with the explanation furnished by the assesse....
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....assessee on the ground that the assessee had not furnished bills and vouchers to establish the genuineness of the transaction and also failed to file any evidences to prove that impugned payments are outside the scope of Section 40A(3)/40(a)(ia) of the Act. The ld. CIT(A) has forwarded copy of the remand report to the assessee for its comment. The assessee vide letter dated 15.11.2017 filed the rejoinder and argued that, we were unable to make further submission of the documents which we possess, due to initiation of Corporate Insolvency Resolution process among two of our group companies, based on the insolvency and bankruptcy code. Since the staffs of the assessee company were involved in the process of IBC proceedings, we are unable to f....
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....ort of expenses debited into the profit & loss account. The ld. AR further submitted that even during assessment proceedings, the AO has not given adequate opportunity of hearing to produce necessary evidences. Further, the assessee was pre-occupied with IBC proceedings in connection with two of its group companies and hence, could not gather necessary evidences to support the expenditure. Therefore, in all fairness, the issue may be set aside to the file of the AO to reconsider the issue. 8. The ld. DR on the other hand strongly supporting order of the CIT(A) submitted that the assessee has failed to file any evidences before AO or ld. CIT(A) to justify the claim of expenditure. Further, even during assessment proceeding no evidence has....
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....ven sufficient and adequate opportunity of hearing to the assessee to produce necessary evidences. In fact, during appellate proceedings, the ld. CIT(A) has forwarded additional details filed by the assessee to the AO for her comments. During remand proceedings, the ld. AO has called upon the assessee to file proof/evidences for having incurred pond and maintenance expenditure. Despite giving various opportunities, the assessee has failed to file any evidences. Further, during appellate proceedings, the ld. CIT(A) has given one more opportunity vide his office letter dated 01.11.2018 to furnish relevant evidences in support of the expenditure. Once again the assessee has failed to file any evidences. The said failure is continued even befor....
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....ade by the assessee for setting aside the appeal to the file of the AO is rejected. 10. Having said so, let us examine the nature of expenditure incurred by the assessee under the head 'pond and farm maintenance expenses'. Admittedly, the assessee has incurred huge expenditure of Rs. 20.21 crores and such expenditure has been incurred in cash in contravention to provision of section 40A(3) of the Act, which is evident from the fact that the ledger account copy filed by the assessee clearly shows that majority of the payments have been made in excess of Rs. 20,000/- in cash in violation of section 40A(3) of the Act. Although, the assessee claimed before the AO that said payments have been made to farmers, but the AO has negated ar....