Assessment based on Best Judgment basis u/s 144 of the Income Tax Act

This appeal by Xerox India Ltd. concerned a best judgment assessment for the 2003-04 tax year. Several grounds of appeal were not pressed by the assessee or were dismissed as premature or general. The primary issue revolved around the assessee's failure to claim certain expenses via a revised return, which the CIT(A) deemed justified in rejecting. Ultimately, the tribunal partly allowed the assessee's appeal.

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH : I-2 : NEW DELHI
BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER
AND
SHRI KUL BHARAT, JUDICIAL MEMBER
ITA No.3618/Del/2017
Assessment Year: 2003-04

Xerox India Ltd.,
5th Floor, Block 1,
Vatika Business Park,
Sector-49, Sohna Road,
Gurgaon.
PAN: AAACM8634R

(Appellant)

vs

ACIT,
Central Circle-20,
New Delhi.

(Respondent)

Assessee by : Shri Ajay Wadhwa, Advocate
Revenue by : Shri Shashi Bhusan Shukla, CIT, DR
Date of Hearing : 15.07.2021
Date of Pronouncement : 28.07.2021
ORDER

This appeal filed by the assessee is directed against the order dated 21st February, 2017 of the CIT(A)-38, New Delhi relating to assessment year 2003-04.

2.At the time of hearing, the ld. Counsel for the assessee did not press grounds No.2 to 4.4 for which the ld. DR has no objection. Accordingly, these grounds are dismissed as not pressed. Ground No.1 being general in nature is dismissed.
Ground No.6 being premature at this juncture is dismissed. Ground No.7 challenging charging of interest u/s 234B being mandatory and consequential in nature is dismissed.

3.Based on the arguments advanced by the assessee, the ld.CIT(A) called for a remand report from the AO who opposed the admission of the additional ground on the plea that the assessee did not raise the issue during assessment proceedings and the assessee did not make the claim either in the original return of income for A.Y. 2003-04 filed on 02.12.2003 which was a belated return or never revised the return filed on 31.03.2005.

6.The ld. DR, on the other hand, heavily relied on the order of the CIT(A). He submitted that since the assessee has not claimed such expenses by filing a revised return, the ld.CIT(A) was fully justified in rejecting such claim made by the
assessee otherwise than by filing a revised return as per the provisions of section 139(5) of the IT Act, 1961.

7.In the result, the appeal filed by the assessees is partly allowed.
Pronounced in the open court on 28.07.2021.

Please find attached the enclosed file for the full judgement