DINESHBHAI MULJIBHAI PATEL,VADODARA V. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1) (PREVIOUSLY DCIT, CIRCLE-1(3)), VADODARA

ITA 307/AHD/2024

AI Insights

The case involves an appeal by Dineshbhai Muljibhai Patel against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of Rs. 3,19,308 as undisclosed receipts for the Assessment Year 2015-16. The addition was based on discrepancies between the amounts reported in Form 26AS and the assessee's books. The Tribunal examined the reconciliation provided by the assessee, which showed that the difference was due to the timing of the accounting of a labor bill by the assessee and his customer in different financial years. The Tribunal concluded that the addition made by the lower authorities was not justified and allowed the appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472317 (ITAT-AHMEDABAD)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-11-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 21-02-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C. DHARANI NATH
• Assessee Lawyers: PARIMALSINH B. PARMAR
• Keywords: Set aside; Principle of natural justice; TDS; FORM 26AS
• Section: 271(1)(c); 194C

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ SMC, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “ SMC” BENCH, AHMEDABAD ] BEFORE DR. BRR KUMAR, VICE PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER आयकर अपील सं /ITA No.307/Ahd/2024 िनधा \u000fरण वष\u000f /Assessment Year : 2015-16 Dineshbhai Muljibhai Patel B-5, Bada Bzar, Nr. Gelani Petrol Pump Nizampura, Vadodara Gujarat – 390 002 (Gujarat) बनाम/ v/s. The DCIT Circle-1(1)(1) [previously DCIT Circle-1(3)] \u0013थायी लेखा सं./PAN: AEMPP 9038 D (अपीलाथ\u0017/ Appellant) (\u0018\u0019 यथ\u0017/ Respondent) Assessee by : Shri Parimalsinh B. Parmar, AR Revenue by : Shri C. Dharani Nath, Sr.DR सुनवाई की तारीख/Date of Hearing : 18/11/2024 घोषणा की तारीख /Date of Pronouncement: 22/11/2024 आदेश/O R D E R PER DR. BRR KUMAR, VICE PRESIDENT This is an appeal filed by the assessee against the order of the Ld.Commissioner of Income Tax (Appeals) [CITA] , National Faceless Appeal Centre, Delhi in proceeding u/s.250 of the Income Tax Act, 1961 vide order dated 05/02/2024 passed for the Assessment Year (AY) 2015-16. 2. The grounds of appeal taken by the assessee are as under:- ITA No. 307/ahd/2024 Dineshbhai Muljibhai Patel vs. DCIT Asst. Year : 2015-16 2 1.The Ld. CIT(A) has erred in law and on facts of the case in confirming the addition of Rs. 3,19,308/- as undisclosed receipts for the year under consideration. 2. Both the lower authorities have erred in making addition solely based on amounts appearing in Form 26AS without understanding the accounting treatment in the books of appellant and its customer and without making any independent verification by issuing notice u/s. 131/133(6) to the customer. 3.. Both the lower authorities have passed the orders without properly appreciating the facts and they further erred in grossly ignoring various submissions, explanations and information submitted by the appellant from time to time which ought to have been considered before passing the impugned order. The action of the lower authorities is in clear breach of law and Principles of Natural Justice and therefore deserves to be quashed. 4. The Ld. CIT(A) has erred in law and on facts of the case in confirming action of the Ld. AO in levying interest u/s. 234A/B/C/D of the Act. 5. The Ld. CIT(A) has erred in law and on facts of the case in confirming action of the Ld. AO in initiating penalty proceedings u/s. 271(1)(c) of the Act. 6. The Appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal. 3. The brief facts of the case are that the assessee has filed his return of income on 26/09/2015 through electronic media declaring total income of Rs.27,61,790/-. The assessee is engaged in the business of electrical work, installation and consultancy in the name of Amal Electricals. The assessment order made by the Assessing Officer u/s.143(3) of the Income Tax Act, 1961 (“the Act”) on a total income of Rs.30,95,350/- and addition of Rs.3,19,308/- made on account of undisclosed receipt and Rs.14,250/- on account of undisclosed interest income toalling to Rs.3,33,558/-. Penalty proceedings ITA No. 307/ahd/2024 Dineshbhai Muljibhai Patel vs. DCIT Asst. Year : 2015-16 3 u/s.271(1)(c) of the Act are also initiated separately for concealment of income of Rs.3,33,558/-. 4. We have heard both the parties and perused the material available on record. We find that the addition has been based solely on the different amount which was mentioned in 26-AS and the reconciliation filed by the assessee. We have gone through the details thereof. The TDS deducted under Section 194C of the Act has reflected in Form 26-AS was of Rs.17,65,740/-, whereas in the books of accounts, the assessee has booked the bill for labour service of Rs.14,46,432/- which led to difference of Rs.3,19,308/- which has been considered as unaccounted amount received by the assessee. We find that the difference is attributable to labour bill of Rs.3,85,210/- dated 17/02/2014 which was booked in the books in the Financial Year (FY)2013- 14 and accounted by the customer in FY 2014-15. 4.1. We have further gone through page Nos. 67 and 70 of the paper book submitted by the assessee, where the amounts have been duly reconciled. For the sake of ready reference, the cumulative summary of Sales and Service Bills raised on Wellcare Hospital is reproduced hereunder: ITA No. 307/ahd/2024 Dineshbhai Muljibhai Patel vs. DCIT Asst. Year : 2015-16 4 ITA No. 307/ahd/2024 Dineshbhai Muljibhai Patel vs. DCIT Asst. Year : 2015-16 5 4.2. Since the amounts stand reconciled, we hold that no addition can be made in the hands of the assessee. Thus, the order of the CIT(A) is hereby set aside and allow the grounds of appeal raised by the assessee. 5. In the result, the appeal of the assessee is allowed. Order pronounced in the Court on 22nd November, 2024 at Ahmedabad. Sd/- Sd/- (SUCHITRA KAMBLE) JUDICIALMEMBER ( DR. BRR KUMAR ) VICE PRESIDENT टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की \u001fितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ! / The Appellant 2. \u001f\"थ! / The Respondent. 3. संबंिधत आयकर आयु$ / Concerned CIT 4. आयकर आयु$ ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय \u001fितिनिध अिधकरण अपीलीय आयकर /DR,ITAT, Ahmedabad, 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स\"ािपत \u001fित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation pad Dattached with this file : 20.11.2024 2. Date on which the typed draft is placed before the Dictating Member. : 21.11.2024 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 22.11.24 7. Date on which the file goes to the Bench Clerk. : 22.11.24 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "