2023 (6) TMI 336 - AT - Income Tax

Disallowance u/s 14A - CIT(A) made the enhancement of disallowance u/s 14A - HELD THAT - When the appeal is filed before the Tribunal by the assessee himself against the orders of the lower authorities, it is expected that the assessee may put forth some documentary evidences in support of his contentions to decide the appeal as it is the duty of the assessee to lead evidence in support of its claim and for the adjudicating authority to decide upon the sustainability of the claim on the basis of the evidence led by the parties before it. Assessee did not appear before the Tribunal despite numerous adjournments allowed and notices issued through RPAD. No material has been placed by assessee to controvert the findings of lower authorities nor has pointed to any fallacy in the findings of lower authorities - no reason to interfere with the order of CIT(A) and thus we dismiss the grounds of the assessee.

Summary

Issues Involved:
1. Disallowance u/s 14A of the Income Tax Act.
2. Enhancement of disallowance by CIT(A).
3. Procedural aspects regarding the assessee's non-appearance.

Summary:

1. Disallowance u/s 14A of the Income Tax Act:
The assessee, engaged in real estate consultations, filed its return for A.Y. 2014-15 declaring an income of Rs. 40,26,526/-. The assessment was framed u/s 143(3) determining the total income at Rs. 62,80,130/- after disallowing Rs. 22,53,600/- u/s 14A of the Act. The CIT(A) upheld the AO's order and observed that the appellant had claimed benefits against income under the head 'House Property' improperly, which should not include any other expenditure except those prescribed u/s 24(a) and 24(b).

2. Enhancement of Disallowance by CIT(A):
CIT(A) enhanced the disallowance to Rs. 31,74,341/- from the AO's disallowance of Rs. 22,53,600/-. The CIT(A) noted that the appellant had misleadingly claimed deductions and had not made any disallowance u/s 14A r.w.r. 8D in the return of income. The CIT(A) found that the disallowance of Rs. 15,41,272/- claimed by the appellant was not in accordance with provisions of section 14A r.w.r. 8D and needed re-examination. Consequently, the income of the appellant was enhanced to Rs. 72,00,871/-.

3. Procedural Aspects Regarding the Assessee's Non-Appearance:
The assessee did not appear before the Tribunal despite multiple notices and adjournments. The Tribunal noted that preferring an appeal requires taking necessary steps to effectively pursue it. In the absence of cooperation from the assessee, the Tribunal decided to dispose of the appeal on merits after hearing the Learned DR.

Tribunal's Decision:
The Tribunal, after hearing the Learned DR and perusing the material on record, found no reason to interfere with the order of CIT(A). The Tribunal dismissed the grounds of the assessee due to the lack of any contrary material brought on record to rebut the findings of the lower authorities.

Conclusion:
The appeal of the assessee was dismissed. Order pronounced in the open court on 15.05.2023.