Assessee fails to furnish supporting bills and vouchers to prove the genuineness of claim of various expenses

Last updated: 22 September 2021

Court :
ITAT Ahmedabad

Brief :
This assessee’s appeal for A.Y. 2015-16, arises from order of the CIT(A)-2, Ahmedabad dated 22-10-2018

Citation :
ITA No. 53/Ahd/2019

IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD “SMC” BENCH
(Conducted Through Virtual Court)
Before: Shri Mahavir Prasad, Judicial Member
And Shri Amarjit Singh, Accountant Member

ITA No. 53/Ahd/2019
Assessment Year 2015-16

Magnanimous
Infrastructure Pvt. Ltd.
H-1109, Titanium City
Centre, Prahlad Nagar
Road, Satellite,
Ahmedabad
PAN: AAGCM5750N

The ITO,
Circle-2(1)(2),
Ambawadi,
Ahmedabad

Revenue by: Shri R.R. Makwana, Sr. D.R.
Assessee by: Shri S.N. Divatia, A.R.
Date of hearing : 08-09-2021
Date of pronouncement : 15-09-2021

ORDER

The solitary ground of appeal of the assessee is directed against the order of ld. CIT(A)-2 in upholding the disallowance of expenses aggregating to Rs. 1,51,33,359/-.

2. The fact in brief is that return of income declaring nil income and claiming loss of Rs. 1,33,83,216/- was filed on 30th Sep, 2015. The case was subject to scrutiny assessment and notice u/s. 143(2) of the act was issued on 7th April, 2016. During the course of assessment, in spite of issuing various notices u/s. 142(1) of the Act, the assessee has failed to furnish the detail in response to notices issued. Under such circumstances on perusal of form no. 3CD, the Assessing Officer noticed that assessee has declared loss of Rs. 13,19,221/- @ -5.13% as compared to gross profit declared at 28.54% in the previous year.

3.The Assessing Officer also noticed that assessee has declared revenue from operation at Rs. 4,47,77,700/- for assessment year 2014-15 against which other expenses of Rs. 2,32,14,316/- was claimed in the P & L account.
However, during the year under consideration, the assessee has declared revenue from operation at Rs. 2,57,19,408/- against other expenses of Rs. 3,14,23,089/- debited in the P & L account.

4. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 15-09-2021.

Please find attached the enclosed file for the full judgement