2024 (9) TMI 1186 - AT - Income Tax

Validity of proceedings u/s 153C - CIT(A) after discussing the issue in detail, rejected assessee s plea on this issue and upheld the validity of proceedings u/s 153C - HELD THAT - After going through the order of learned CIT(A) and there being no supporting material filed by the assessee in support of its claim, we see no reason to interfere with the finding of learned CIT(A) on this count. Accordingly, grounds taken by the assessee in this respect are rejected. Disallowance of expenses booked in P L a/c - Authorities below have disallowed the claim of the assessee on the ground that assessee was not found to be engaged in any business activities. Before us also the assessee failed to provide any supporting evidence in support of its claim. Under these circumstances we see no reason to interfere in the finding of learned CIT(A) on the issue in question. Consequently, grounds taken by the assessee on this issue are dismissed.

Summary

Issues:
Validity of proceedings under section 153C of the Income-tax Act.
Disallowance of expenses booked in Profit & Loss Account.
Appeals against orders of Commissioner of Income-tax (Appeals) for assessment years 2010-11, 2011-12, and 2012-13.

Analysis:
The appeals were filed by the assessee against orders of the Commissioner of Income-tax (Appeals) for three assessment years, 2010-11, 2011-12, and 2012-13. The appeals were heard together due to common issues. The assessee did not attend the proceedings, and notices were returned unserved. The Tribunal proceeded to hear the appeals based on the available record.

In the assessment year 2010-11, the assessee challenged the validity of proceedings under section 153C of the Income-tax Act. The Commissioner of Income-tax (Appeals) upheld the validity of the proceedings, and the Tribunal found no reason to interfere with this finding. The grounds raised by the assessee on this issue were rejected.

Regarding the disallowance of expenses booked in the Profit & Loss Account, the Commissioner of Income-tax (Appeals) rejected the claim of the assessee, stating that the expenses were not genuine as the assessee was not engaged in any business activities. The Tribunal noted that the assessee failed to provide supporting evidence for its claim, and therefore upheld the decision of the Commissioner of Income-tax (Appeals) on this issue. Consequently, the grounds taken by the assessee on this matter were dismissed.

The Tribunal dismissed the appeal for the assessment year 2010-11. For the subsequent assessment years, 2011-12 and 2012-13, where identical grounds were raised by the assessee, the Tribunal upheld the orders of the Commissioner of Income-tax (Appeals) based on the decision for the earlier year. The appeals for all three assessment years were ultimately dismissed.

In conclusion, the Tribunal upheld the decisions of the Commissioner of Income-tax (Appeals) regarding the validity of proceedings under section 153C and the disallowance of expenses. The appeals filed by the assessee for all three assessment years were dismissed.