Shashikant Yashwant Chaudhari Vs ITO

Parties Involved

Facts Summary

The assessee, Shashikant Yashwant Chaudhari, was engaged in the proprietary business of loan recovery agency for various non-banking financial companies. His return of income declaring total income of ₹15,57,630/- was selected for scrutiny. The Assessing Officer issued six notices under section 142(1) of the Income-tax Act, 1961, calling upon the assessee to substantiate and explain the huge expenditure incurred against the gross commission earned. The assessee's written submissions did not satisfy the Assessing Officer, who disallowed 50% of the salary expenditure and 20% of the remaining expenditure, resulting in total additions of ₹34,61,489/-. The assessee appealed against the assessment order to the National Faceless Appeal Centre (NFAC), which dismissed the appeal ex-parte for non-prosecution. The assessee further appealed to the Income Tax Appellate Tribunal (ITAT), challenging the ex-parte dismissal.…

Legal Issues

• 1. Whether the NFAC provided a reasonable opportunity to the appellant to produce relevant documents and substantiate his claims?
• 2. Whether the NFAC was justified in dismissing the appeal ex-parte for non-prosecution without adjudicating the dispute on merits?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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