The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has imposed a cost of Rs.25,000 on Jet Airways for being delinquent during income tax proceedings.
The assessee, Jet Airways (India) Limited is a public limited company engaged in the business of scheduled airline carrying out transportation of passengers and cargo and other allied services. The assessee filed its return of income dated 29.11.2016, declaring total income at Rs. Nil under the normal provisions and book loss of Rs. Nil under Section 115JB of the Income Tax Act 1961.
It was observed that the assessee had entered into a large value international transaction with its Associated Enterprises (AEs) and also as per the survey report. In spite of several notices, the assessee had failed to furnish details before the A.O. except for a letter received from Resolution Professional for Jet Airways (India) Ltd. stating that the assessee company was undergoing Corporate Insolvency Resolution Process (CRIP for short), seeking for the assessment proceedings to be kept as abeyance.
The A.O. made the impugned addition under the normal provisions, which was more than that of the income computed under Section 115JB of the Act, wherein the income under the normal provision was considered for computing the tax liability of the assessee company.
Vijay Mehta on behalf of the assessee contended that since the assessee was unable to furnish the required documentary evidence as the assessee’s company was going through insolvency process before the NCLT.
Manoj Mishra on behalf of the revenue opposed to remanding this issue back to the A.O. for the reason that the assessee had been given sufficient opportunity before the lower authorities to present its case.
The Division Bench of Prashant Maharishi, (Accountant Member) and Kavitha Rajagopal (Judicial Member) allowed the appeal observing that,
“The assessee may be given one last opportunity to present its case before the A.O. It is also evident that a considerable amount of time and revenue has been spent by the Exchequer in carrying out the assessment proceedings followed the appellate proceedings. The assessee is directed to pay a cost of Rs.25,000/- each in both these appeals for being delinquent before the lower authorities.”
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