CREDULITY SOLUTIONS PVT. LTD.,NEW DELHI V. ITO WARD 13(3), NEW DELHI

ITA 966/DEL/2024

AI Insights

The case involves Credulity Solutions Pvt. Ltd., which appealed against the order of the Learned Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (NFAC), Delhi, which had upheld the additions made by the Income Tax Officer (ITO) under Sections 143(3) r.w.s. 144B of the Income Tax Act, 1961 for the assessment year 2021-22. The ITO had made substantial additions to the assessee's income, citing non-verification of payments made to certain contractors who had not filed returns. The CIT(A) dismissed the appeal, leading to the current appeal before the Tribunal. The Tribunal found that the CIT(A) had erred in not considering the documents submitted by the assessee, which were crucial for verifying the genuineness of the transactions and the identity of the payees.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775966 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2021-2022
• Appeal Filed On: 01-03-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: S K.SAMPATH; V. RAJKUMAR
• Keywords: Set aside
• Section: 143(3); 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 966/Del/2024 Assessment Year: 2021-22 Credulity Solutions Pvt. Ltd., 805, 8th Floor, Akashdeep Building, 26A, Barakhamba Road, New Delhi-1100 01 Vs. Income Tax Officer, Ward 13(3), Delhi PIN: 1100 02 PAN :AAHCC7301E (Appellant) (Respondent) ORDER PER VIMAL KUMAR, JUDICIAL MEMBER: The appeal filed by the assessee is against order dated 09.01.2024 of Learned Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (NFAC), Delhi (hereinafter referred as “the Ld. CIT(A)”) under Section 250 of the Income Tax Act, 1961 (hereinafter referred as “the Act”) arising out of Assessment Order dated 21.12.2022 of the Assessment Unit, Income Tax Appellant by S/Shri K. Sampath & V. Rajkumar, Advs. Respondent by Shri Rajesh Kumar Dhanesta, Sr. DR Date of hearing 27.08.2025 Date of pronouncement 10.09.2025 Printed from counselvise.com 2 ITA No.966/Del.2024 Department, New Delhi (hereinafter referred as “the Ld. AO”) under Sections 143(3) r.w.s. 144B of the Act for assessment year 2021-22. 2. Brief facts of the case are that the assessee company filed its return of income on 19.02.2022 declaring income of Rs.76,81,327/-. The case was selected with reason for verification of “the assessee has shown large payment as contract payments to persons who have not filed return of income for the relevant assessment year. Here the identity of persons to whom payments have been made and genuineness of transactions needs to be verified”. Notice under Section 143(2) of the Act was issued on 22.06.2022. Notices under Section 142(1) dated 12.08.2022 and 03.11.2022 as well as letter dated 23.11.2022 were issued to the assessee. The assessee failed to respond the notices and letter. Show-cause-notice dated 06.12.2022 was issued. On completion of proceedings, Ld. AO vide order dated 21.12.2022 made additions of Rs.2,89,23,237/-. Rs.3,75,000/-, Rs.1,14,28,183/- and Rs.4,79,873/-. 3. Against order dated 21.12.2022 of Ld. AO, the appellant/assessee preferred appeal before the Ld. CIT(A) which was dismissed vide order dated 09.01.2024. 4. Learned Authorized Representative for appellant/assessee submitted that Ld. CIT(A) upheld the action of Ld. AO by incorrectly by observing as under: “Though opportunities have been given during the course of appellate proceedings, no details have been uploaded”. Printed from counselvise.com 3 ITA No.966/Del.2024 “That the said observation is wrong in as much as the appellant had duly uploaded all the requisite documents in support of the expenses claimed on account of services provided by M/s. Futuretimes Technology India Pvt. Ltd. Unfortunately, all the papers filed vide acknowledgement no.125276841250423 in response to notice dated 01.03.2023 have not been ignored by the NFAC.” In fact, appellant had filed all papers to the notice dated 01.03.2023 which are at pages 92 and 93 of the paper books. 4.1 Ld. CIT(A) failed to appreciate that payments were made to Soni Chatrath & Co. and not PNAM & Co. and the same was shown to the Ld. AO as well as to the Ld. CIT(A)/NFAC by way of appending the copies of bank statement which showed the payments having indeed being made. The matter may be restored to the file of Ld. AO. 5. Learned Authorized Representative for the Revenue submitted that the appellant/assessee claims non-consideration of relevant documents by Ld. CIT(A). So the matter be restored to the file of the Ld. CIT(A). 6. From examination of record in light of aforesaid rival contentions, it is material fact that Ld. CIT(A) while dealing with ground no. 2 of the appeal on page no. 8 observed that “Though opportunities have been given during the course of appellate proceedings, no details have been uploaded”. The said observation is wrong in as much as the appellant had duly uploaded all the requisite documents in support of the expenses claimed on account of services provided by M/s. Futuretimes Technology India Pvt. Ltd. Unfortunately, all the Printed from counselvise.com 4 ITA No.966/Del.2024 papers filed vide acknowledgement no.125276841250423 in response to notice dated 01.03.2023 have not been ignored by the National Faceless Assessment Centre (NFAC) which are at pages 92 and 93 of the paper books. Likewise, the documents regarding payments to Soni Chatrath & Co. were not appreciated. The Appellant/assessee has grievance of non-consideration of documents by Ld. CIT(A). In view of above of above material facts in interest of justice, it is expedient to set aside the order of Ld. CIT(A) and the matter is restored to the file of Ld. CIT(A) for fresh decision in accordance with law after affording fair opportunity of hearing to the appellant/assessee. 7. In the result, the appeal of assessee is allowed for statistical purposes. Order pronounced in the open court on 10th September, 2025. Sd/- Sd/- (S RIFAUR RAHMAN) ACCOUNTANT MEMBER (VIMAL KUMAR) JUDICIAL MEMBER Dated: 10th September, 2025. Mohan Lal Copy forwarded to: 1. Applicant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "