2019 (7) TMI 1931 - AT - Income Tax

Rectification o mistake - Short payment of appeal fees - HELD THAT - For the speedy disposal of appeal, the case was posted preponed to 5.7.2019 and Notice was issued on 14.6.2019 by RPAD and acknowledgement of RPAD is placed on record that the Notice has been received on 24.6.2019. But an adjournment letter dt.13.7.2019 was sent by post to the Asst.Registrar, Bangalore and was received by the office on 15.7.2019 at 2.15 P.M (letter placed on record). None appeared at the time of hearing, from the file record it was found that the assessee has not rectified the defect of short payment of appeal fees of Rs.9,500 and balance payment is outstanding payable. We considering the action of the assessee in not rectifying the defect and non- compliance of the directions of the ITAT, Registry, dismiss the appeal of assessee. Disallowance of deductions claimed under Section 57 - HELD THAT - Departmental Representative has emphasizing that the CIT (Appeals) has erred in restricting the deduction to Rs.24,65,753 whereas the Assessing Officer has made disallowance in the assessment order of Rs.95,73,377. The learned Departmental Representative supported the orders of Assessing Officer, we find that the learned Departmental Representative could not controvert the observations of the CIT (Appeals) with new evidence or cogent material except relying on the order of the Assessing Officer. We find that the CIT (Appeals) has considered the facts and taken a reasonable view which we are not inclined to interfere and uphold the same and dismiss the ground of appeal of the Revenue.

Summary

Issues involved:
Cross appeals by assessee and Revenue against CIT (Appeals) order u/s 143(3) and u/s 250 of the Income Tax Act, 1961.

Detailed Analysis:

1. Appeal of Assessee (ITA No.2781/Bang/2018):
The appeal by the assessee was dismissed due to a short payment of appeal fees of Rs.9,500. Despite multiple adjournments and notices, the assessee failed to rectify the payment deficiency. The ITAT, Registry dismissed the appeal considering the non-compliance and failure to rectify the defect.

2. Revenue's Appeal (ITA No.2825/Bang/2018):
The Revenue's appeal was against the CIT (Appeals) order regarding the disallowance of deductions under Section 57 of the Act. The Assessing Officer disallowed business loss and made disallowances under Section 14A r.w. Rule 8D. The CIT (Appeals) granted partial relief by restricting the disallowance under Section 57(iii) to Rs.24,65,753. The Revenue contested this relief, arguing that the CIT (Appeals) erred in restricting the deduction. However, the ITAT upheld the CIT (Appeals) decision, noting that the Departmental Representative failed to provide new evidence or material to counter the CIT (Appeals) observations. The ITAT found the CIT (Appeals) decision reasonable and dismissed the Revenue's appeal.

In conclusion, both the assessee's and Revenue's appeals were dismissed by the ITAT, upholding the decisions made by the authorities in the respective cases.