2015 (6) TMI 639 - AT - Income Tax

Appeal decided ex-parte - Held that - The appeal of the assessee was decided ex-parte on the basis of material on record. In the absence of the assessee having explained reason for non attendance before the CIT(A) on different dates of hearing, we find no merit in the plea of the assessee. Author plea raised by the assessee was that CIT(A) had not considered the statement of facts filed by assessee. However, perusal of order of CIT(A) reflects that the statement of facts are incorporated ground wise. Hence we find no merit in the plea of the assessee. - Decided against assessee. Non obtaining necessary approval/direction under section 144A - Held that - The reliance by the assessee on the provision of section 144A of the Act in this regard is not correct as passing a best judgment assessment under section 144 of the Act is independent from the powers of the JCIT to issue direction in certain cases under section 144A of the Act. Consequently we up holding the order of CIT(A) dismiss the ground of appeal raised by the assessee. - Decided against assessee. Adddtion on account of Short fall in G.P. - Held that - After going through the statement of facts filed along with appeal memo and in the absence of the assessee having failed to produce the original purchase and sale bills and also purchase and sale register, the CIT(A) up held the addition of ₹ 6,46,097/-. The assessee has failed to controvert finding of the CIT(A) and in the absence of the same and the assessee having failed to file original purchase and sale bills before the authorities below, we are inconformity with the order of the CIT(A) in this regard and the ground of appeal no. 4 raised by the assessee is dismissed. Addition made under section 41(1) - difference in Sundry creditors liability - Held that - The assessee before us has failed to furnish any reconciliation statement and in the absence of the same we find no merit in the ground of appeal - Decided against assessee. Disallowance to the extent of 20% out of conveyance, delivery, labour, salaries shop expenses and staff welfare - Held that - As before the CIT(A) assessee failed to file any details and hence the addition made by the AO was confirmed. Even before us despite an opportunity being granted, the assessee has failed to appear and justify the nature of expenses and file requisite details. In the absence of the same we find no merit in the ground of appeal - Decided against assessee. Disallowance of depreciation on vehicles - Held that - The assessee submitted debit note from one Dinesh Shinde regarding the purchase of two vehicles. No other details were filed by the assessee, hence depreciation on the said vehicles amounting to ₹ 87,731/- was disallowed which in turn was up held by the CIT(A). The assessee before has failed to furnish the requisite documents in support of purchase of the said vehicles and in the absence of the same we find no merit in the claim of the assessee. - Decided against assessee.

Issues involved:
1. Ex-parte order passed by CIT(A)
2. Approval under section 144A of the Act not obtained by AO
3. Addition on account of fall in G.P.
4. Addition under section 41(1) of the Act
5. Disallowance of expenses
6. Disallowance of depreciation on vehicles

Detailed Analysis:
1. The first issue pertains to the ex-parte order passed by the CIT(A). Despite multiple opportunities provided, the assessee failed to appear before the CIT(A) or move an adjournment application. The appeal was decided ex-parte based on the material on record. The CIT(A) had considered the statement of facts filed by the assessee, which were incorporated ground-wise in the order. Hence, the plea of the assessee was dismissed.

2. The second issue concerns the approval under section 144A of the Act not obtained by the AO. The assessee contended that the AO did not seek necessary approval from the JCIT before passing the order under section 143(3) r.w.s. 144. However, the Tribunal upheld the order of the CIT(A) stating that the provision of section 144A is independent of passing a best judgment assessment under section 144.

3. The third issue involves the addition on account of fall in Gross Profit (G.P.). The AO noted a significant decrease in the G.P. rate declared by the assessee for the current year compared to the preceding year. The Tribunal upheld the addition after considering various factors, including the nature of sales and the failure of the assessee to produce original bills and registers.

4. The fourth issue relates to the addition made under section 41(1) of the Act due to the failure of the assessee to reconcile balances of sundry creditors. Despite notices issued and discrepancies found, the assessee did not provide a reconciliation statement. The Tribunal upheld the addition as the assessee failed to prove the genuineness of the liabilities.

5. The fifth issue concerns the disallowance of certain expenses by the AO. The assessee did not provide sufficient details to justify the expenses, leading to the confirmation of the addition by the CIT(A) and the Tribunal.

6. The final issue is the disallowance of depreciation on vehicles due to the lack of supporting documents provided by the assessee. The Tribunal upheld the disallowance as the assessee failed to furnish the requisite documents, resulting in the dismissal of the appeal.

In conclusion, the Tribunal dismissed the appeal filed by the Assessee after thorough consideration of each issue raised in the grounds of appeal.

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