United Tourist Service Private Limited, New Delhi V. DCIT Circle 25(1), New Delhi

ITA 1237/DEL/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 5615 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 07-07-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 18-03-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 2; 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No.1237/Del/2024 Assessment Year 2018-19 United Tourist Service Private Limited RZ-22, Sukhi Ram Park, Matiala Nawada, Uttam Nagar New Delhi Vs. DCIT, Circle-25(1) New Delhi TAN/PAN: AABCU5838J (Appellant) (Respondent) Applicant by: Ms. Rano Jain, Advocate Ms. Shikha Rustagi, Advocate Respondent by: Shri Amit Katoch, Sr.DR Date of hearing: 08 07 2024 Date of pronouncement: 25 07 2024 O R D E R PER PRADIP KUMAR KEDIA - A.M.: T h e ca p t i o n ed a p p e al h as b e en fi l e d b y t h e a s s e ss e e ag ai n s t t h e o r d er o f t h e Co m m i s si o n er o f I n c o m e T ax ( A p p ea l s)-N at i o n al F a ce l e s s A p p e al C en t r e ( N F A C), D el h i [‘CIT(A)’ in short] dated 3 1 . 01. 2 0 24 ar i si n g fr o m t h e a s se s s m en t o r d er d a t ed 3 1 . 0 3 . 2 0 2 1 p a s se d b y t h e A s s e s si n g O f fi c er ( A O ) u n d er S ect i o n 1 43 ( 3 ) r . w . S ect i o n 1 43 ( 3 A ) & 1 4 3 ( 3 B) o f t h e I n c o m e T a x A ct , 1 9 6 1 ( t h e A ct ) co n c er n i n g A . Y . 2 0 18- 19. 2. A s p er t he g r o u n d s o f ap p e al , t h e as s es s ee h a s c h a l l en g e d t h e ad d i t i o n o f R s . 7 7 , 3 1 , 1 8 2 /- t o t h e r et u r n o f i n c o me o f t h e as s e s se e b y i n v o k i n g p r o v i si o n s o f S ec t i o n 4 0 ( a) ( i a) o f t h e A ct . 3. Wh en t h e m at t er w as ca l l e d f o r h ear i n g , t h e l d . co u n se l f o r t h e ITA No.1237/Del/2024 2 as s e s se e su b mi t t e d at t h e o u t s et t h a t t h e a s s es s ee-co m p an y i s en g a g e d i n t h e b u s i n e ss o f t r av els a n d t r an s p o r t an d p a i d h i r i n g ch ar g es t o v en d o r s w h o ar e s ai d t o b e s m a l l v e n d o r s an d d o n o t p o s se s s mo r e t h an 1 0 v eh i cl e s. T h e l d . co u n s el f u r t h er s u b m i t t ed t h at t h e p a y m en t s ma d e t o su ch v en d o r s ar e w i t h i n t h e sp ec i fi e d l i m i t s p r o v i d e d u n d er S ec t i o n 1 9 4 C w h i ch d o n o t r eq u i r e a n y d e d u ct i o n o f t ax at so u r c e. A l i st o f v en d o r s al o n g w i t h P A N w er e p r o v i d e d t o t h e A O . T h e AO h o w e v er d i d n o t f i n d t h e e x p l an at i o n o f fer ed t o b e sat i s fa ct o r y . B a se d o n d i scl o su r e m ad e i n co l u mn N o . 2 1 ( i i ) ( B ) o f t h e T a x A u d i t Re p o r t , t h e AO co n c l u d e d t h at t h e As s es s ee n ei t h e r d e d u ct ed T D S u n d er S e ct i o n 1 9 4 C n o r d ep o s i t ed t h e t ax w i t h t h e G o v t . T h e AO t h u s h el d t h a t t h e As s e s se e h a s co m m i t t ed d e f au l t t ow ar d s n o n d ed u c t i o n an d n o n- r e mi t t a n c e o n su m o f R s. 2 , 5 7 , 7 0 , 6 0 8 /-. A d i s al l o w a n c e o f R s. 7 7 , 3 1 , 1 8 2 /- w as car r i e d o u t u n d er S e ct i o n 4 0 ( a) ( i a) o f t h e A c t at t r i b u t a b l e t o s u c h d e f au l t . T h e l d . c o u n s el su b m i t t e d t h a t ag ai n st t h e as s e s s m en t o r d er , t h e fi r st ap p el l a t e o r d er i s p a s se d ex-p a r t e w i t h o u t o p p o r t u n i t y t o t h e a s se s s ee. 4. T h e l d . co u n se l a d v er t ed t o an a f fi d a v i t d at ed 6 th Ju l y , 2 0 2 4 ad m i n i st er ed o n o at h b y S h r i S u sh i l D ag ar , D i r ec t o r o f t h e as s e s se e- co m p a n y, t o su b m i t t h at t h e I n co m e T ax m at t er o f t h e asse s s ee co m p a n y w a s l o o k e d a ft er b y co u n se l Mr . M u k u l G u p t a a n d h i s e-m ai l i d a n d p h o n e nu m b er was n o t ed i n a p p eal m e m o fi l ed b e f o r e CI T ( A ) . T h e n o t i c es o f h e ar i n g w er e p l a u si b l y i s su ed t h r o u g h e-m a i l Id o f t h e p r ev i o u s c o u n sel. Th e r el at i o n s h i p w i t h t h e p re v i o u s co u n se l t u r n s so u r an d d u e t o su ch d y s f u n ct i o n al r el at i o n s w i t h p r ev i o u s c o u n s el, t h e as s e s se e w a s n o t m ad e p r i v y t o t h e o n g o i n g p r o ce ed i n g s b e fo r e t h e CI T ( A ) r es u l t i n g i n ex-p a rt e o r d er . T h e l d . co u n se l su b mi t t e d t h a t f ai l u r e t o a t t e n d b e fo r e t h e CI T ( A ) i s n o t d el i b er at e b u t b e c au se o f non-co m m u n i ca t i o n o f n o t i ce s so i s su ed b y t h e F i r st A p p el l at e A u t h or i t y t o t h e a s se s s ee. T h e l d . co u n s el al so p o i n t e d o u t t h at t h e as s e s se e h a s a p ri m a f a c i e st r o n g c as e o n m er i t s t o j u s t i f y n o n- ITA No.1237/Del/2024 3 ap p l i ca b i l i t y o f S e ct io n 4 0 ( a) ( i a) at t r i b u t ab l e t o a l l eg ed d e fa u l t i n T D S w i t h r e f er e n c e t o S ect i o n 1 9 4 C o f t h e A ct . T h e l d . co u n s e l u r g ed f o r r es t o r at i o n o f m at t e r b ac k t o t h e f i l e o f CI T ( A ) fo r fr e sh d et er mi n a t i o n o f i s su e i n ac co r d a n ce w i t h l a w a ft e r g i v i n g p r o p er o p p o r t u n i ty t o t h e as s e s se e. 5. T h e l d . D R, o n t h e o t h er h an d, r el i ed u p o n t h e fi r s t a p p el l at e o r d er . 6. I n t h e l i g h t o f su b m i s si o n m a d e o n b eh al f o f t h e a s se s s ee a n d i n t h e l i g h t o f a f f i d av i t f i l ed g i v i n g r e as o n f o r n o n-co m p l i an ce b e f o r e t h e CI T ( A ), we ar e c o n v i n ced t h a t i t i s a fi t ca s e f o r r e-a p p r eci at i o n o f f act u a l m at r i x i n t h e l i g h t o f t h e p r e v ai l i n g l aw a ft er g i v i n g p r o p er o p p o r t u n i t y t o t h e a s se s s ee w h i l e d et er m i n i n g t h e i ss u e . T h e as s e s se e h a s s u f fi c i e n t l y d e m o n st r at ed t h e r e as o n s f o r n o n-co m p l i an ce s b e f o r e t h e CI T ( A ) r e su l t i n g i n ex-p a r t e d e ci s i o n. T h e e x p l a n at i o n a p p ear s p l a u si b l e. T h u s , w i t h o u t an y e x p r e s si o n o n m er i t s , t h e o r d er o f t h e CI T ( A ) i s s et a si d e an d t h e m a t t er i s r es t o r ed b a ck t o t h e f i l e o f t h e CI T ( A ) fo r fr e sh d et er m i n at i o n i n a cc o r d a n c e w i t h l aw a ft er g i v i n g p r o p er o p p o r t u n i t y t o t h e a s se s s ee. 7. I n t h e r e s u l t , t h e a p p e al o f t h e a s se s s ee i s al l o w ed f o r s t a t i st i c al p u r p o se s. Order pronounced in the open Court on 25 th July, 2024. Sd/- Sd/- [SUDHIR PAREEK] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 25 th July, 2024 Prabhat Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) ITA No.1237/Del/2024 4 4. CIT 5. DR Assistant Registrar