Venkateshwara Square Associates Vs. ITO, Ward-12(1), Pune

Parties Involved

Facts Summary

The appellant, Venkateshwara Square Associates, is a firm engaged in the business of Building Construction as Promoters and Developers. Survey operations under section 133A of the Income-tax Act, 1961 were conducted on 17.09.2013, during which the appellant declared additional income of Rs.49,15,000/-. The appellant had not filed the return of income under section 139(1) of the Act. The case was reopened, and notice under section 148 was issued to the appellant on 26.10.2017. The appellant filed copies of return of income, financial statements, and computation of income in response to the show cause notice dated 28.11.2018. Another show cause notice was issued on 17.12.2018, to which the appellant responded with an explanation that the expenses were not transferred to the Contract account/Expenses account but were kept under Misc expenses for further debiting to Partners Capital Account in their profit sharing ratio. The Assessing Officer completed the assessment under section 143(3) r.w.s.147, making an addition of Rs.49,15,000/- as unexplained expenditure under section 69C of the Act.…

Legal Issues

• 1. Whether the NFAC should have dealt with the merits of the issue in appeal even in the case of an ex parte order?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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