Haywizz Havelock Island Resort Vs. ITO, Ward-3(4), Port Blair

Parties Involved

Facts Summary

The assessee, Haywizz Havelock Island Resort, is a firm engaged in the hotel business. It did not file a return of income for the assessment year 2020-21. According to the Assessing Officer, the assessee reported total sales of ₹3,38,58,054/- in the GST return and received rent of ₹41,00,000/- which appeared to have escaped assessment. The Assessing Officer issued a show cause notice under section 148A(b) of the Income Tax Act, 1961. Since the assessee did not file a return or reply to the notice, the Assessing Officer assessed the total income at ₹1,37,20,800/-. The assessee filed an appeal before the Commissioner of Income Tax (Appeals)-NFAC, Delhi, which was dismissed ex-parte due to non-compliance. Aggrieved, the assessee filed an appeal before the Tribunal.…

Legal Issues

• 1. Whether the dismissal of the appeal ex-parte by the CIT(A) was justified.
• 2. Whether the addition of Rs.96,20,800/- by the lower authorities was excessive, arbitrary, and unjustified.
• 3. Whether the gross profit rate of 30% applied by the lower authorities was devoid of rationale.
• 4. Whether the addition of Rs.41,00,000/- to the total income was impermissible double taxation.

Judgment Outcome

Decided in favour of Assessee.

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