Haldex Anand India Private Limited vs. National Faceless Assessment Centre

Parties Involved

Facts Summary

The assessee, Haldex Anand India Private Limited, is a company engaged in the manufacture and supply of various automotive components. The company filed its income tax return for the Assessment Year 2018-19, declaring income of Rs.10,10,39,610/- and claiming a refund of Rs.1,26,66,620/-. The return was processed by the Central Processing Centre (CPC) under Section 143(1) of the Income Tax Act, 1961, determining the total income at Rs.10,10,40,930/-. The case was selected for complete scrutiny under the Centralized Assessment Scheme (CASS) for verification of various claims and transactions. The Assessing Officer (AO) found that the assessee had made a payment of Rs.72,75,433/- to M/s. Victor Gaskets India Ltd. on account of royalty/service charges. The registration of M/s. Victor Gaskets India Ltd. had been cancelled by the Ministry of Corporate Affairs (MCA). The AO issued notices under Sections 143(2) and 142(1) of the Act, seeking details and documents to justify the transaction. The assessee failed to provide the necessary details, leading to the disallowance of the expenses and an increase in the total income. The assessee appealed to the Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (CIT(A)/NFAC), Delhi, challenging the AO's order. However, due to non-compliance with the notices issued by the CIT(A), the appeal was dismissed ex-parte. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT), Pune, seeking to set aside the CIT(A)'…

Legal Issues

• 1. Non-prosecution of the appeal by the appellant
• 2. Disallowance of royalty/service charges and levy of interest under Section 115P

Judgment Outcome

Decided in favour of Assessee.

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