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The Tax Publishers Additions made with no supportive reasons to controvert - thereto *Facts:* Certain disallowances and additions were made out of other expenses as reported in the financials of the assessee corporate entity. On appeal assessee cited that they were audited by one of the reputed big 3/4 firms thus no disallowance was warranted without submitting corroborative substantive information. On further questioning, assessee's rejoinder was there was a change in the management at the UK parent thereby information of earlier years could not be made available and they were facing difficulties to secure this from earlier management. CIT(A) confirmed disallowances not appreciating the stand of the assessee. On higher appeal to ITAT - Held against the assessee that the order of the CIT(A) required no interference. Strictures were passed against the callous attitude of the company. "The accounting record and other records and evidences are the property of the company regardless of the change of management. Notwithstanding, the governing laws provided in the Companies Act, Income Tax Act and many other Acts require the assessee company to keep and produce the financial records of the earlier year whenever the necessity for such records arises. The assessee seeks to absolve it from the undetachable responsibility of supporting its return of income without production of underlying records on a flimsy premise of such records not available with new management. Naturally, such deep slumber and 'couldn't-care-less and insouciant attitude' is at its own peril of the company. Noticeably, the assessment proceedings remained pending at the time of exchange of control of management. Overtly, such insipid and indifferent arguments are a damp squib and if allowed to be accepted, would be destructive of carrying out assessment in a fair and non-partisan manner. Where the inquiry and examination is impeded, the distraught authorities would be left with no recourse but would be naturally forced to indulge in some kind of estimations and guesswork to compensate the revenue for reprehensible behaviour". *Case:* Serco India (P) Ltd. v. Asstt. CIT 2023 TaxPub(DT) 1113 (Del-Trib)

The Tax Publishers

Additions made with no supportive reasons to controvert - thereto

Facts:

Certain disallowances and additions were made out of other expenses as reported in the financials of the assessee corporate entity. On appeal assessee cited that they were audited by one of the reputed big 3/4 firms thus no disallowance was warranted without submitting corroborative substantive information. On further questioning, assessee's rejoinder was there was a change in the management at the UK parent thereby information of earlier years could not be made available and they were facing difficulties to secure this from earlier management. CIT(A) confirmed disallowances not appreciating the stand of the assessee. On higher appeal to ITAT -

Held against the assessee that the order of the CIT(A) required no interference. Strictures were passed against the callous attitude of the company.

"The accounting record and other records and evidences are the property of the company regardless of the change of management. Notwithstanding, the governing laws provided in the Companies Act, Income Tax Act and many other Acts require the assessee company to keep and produce the financial records of the earlier year whenever the necessity for such records arises. The assessee seeks to absolve it from the undetachable responsibility of supporting its return of income without production of underlying records on a flimsy premise of such records not available with new management. Naturally, such deep slumber and 'couldn't-care-less and insouciant attitude' is at its own peril of the company. Noticeably, the assessment proceedings remained pending at the time of exchange of control of management. Overtly, such insipid and indifferent arguments are a damp squib and if allowed to be accepted, would be destructive of carrying out assessment in a fair and non-partisan manner. Where the inquiry and examination is impeded, the distraught authorities would be left with no recourse but would be naturally forced to indulge in some kind of estimations and guesswork to compensate the revenue for reprehensible behaviour".

Case: Serco India (P) Ltd. v. Asstt. CIT 2023 TaxPub(DT) 1113 (Del-Trib)