SPAZZIO PROJECT AND INTERIORS PVT. LTD., NEW DELHI V. ITO, WARD- 24(1), NEW DELHI

ITA 2321/DEL/2018

AI Insights

The case involves Spazzio Project and Interiors Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)-28, New Delhi, for the assessment year 2014-15. The primary contention was regarding an addition of Rs.4,42,24,072 to the assessee's income, which was alleged to be undisclosed income based on a discrepancy between the contractual receipts reported in the profit and loss account and those shown in Form 26AS. The Tribunal found that the assessee had revised TDS entries and Form 26AS after the assessment, which were not available at the time of the original assessment. Consequently, the Tribunal admitted the additional evidence and remanded the case for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 108575 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 12-02-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 03-04-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAKESH GUPTA
• Keywords: Additional evidence; TDS; FORM 26AS
• Section: 234B

Judgement Text

1 ITA No. 2321/Del/2018 Spazzio Project & Interiors, ND IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH: ‘B’ NEW DELHI ] BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER I.T.A. No. 2321/DEL/2018 (A.Y. 2014-15) Spazzio Project and Interiors Pvt. Ltd., C/o. M/s. RRA TAXINDIA, D-28, South Extension, Part-1, New Delhi – 110 049. PAN No. AAOCS8996C ( APPELLANT ) Vs. Income Tax Officer, Ward : 24 (1) New Delhi. ( RESPONDENT ) ORDER PER YOGESH KUMAR US, JM This appeal is filed by the assessee against the order dated 09.02.2018 of the ld. Commissioner of Income Tax (Appeals)-28, [hereinafter referred to CIT (Appeals) New Delhi, for assessment year 2014-15. Assessee by : Dr. Rakesh Gupta, Adv.; & Shri Somil Agarwal, Adv.; Department by: Shri T. James Singson, Sr. D. R.; Date of Hearing 13.02.2023 Date of Pronouncement 16.02.2023 2 ITA No. 2321/Del/2018 Spazzio Project & Interiors, ND 2. The assessee has raised the following substantive grounds of appeal :- “1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making addition of Rs.4,42,24,072/- on account of alleged difference in contractual receipts as shown in Form 26AS and as per profit and loss account and further erred in treating the same as alleged undisclosed income of the assessee and that too by recording incorrect facts and findings and without considering the submissions of the appellant and in violation of principles of natural justice. 2. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making addition of Rs.4,42,24,072/- on account of alleged difference in contractual receipts, is bad in law and against the facts and circumstances of the case. 3. That having regard to the facts and circumstances of the case Ld. CIT(A) has erred in law and on facts in not reversing the action of the Ld. AO in charging interest under section 234A, 234B and 234D of the Income Tax Act, 1961.” 3. Brief facts of the case are that, the assessee has filed return declaring income of Rs. 12,25,420/- during the assessment proceedings, the Ld. A.O. found that the assessee had disclosed total receipts of Rs. 4,94,78,527/- on its profit and loss account which included contract receipts of Rs. 4,70,99,572/- and other receipts of Rs. 12,35,002/- wherein in Form No. 26AS, the total 3 ITA No. 2321/Del/2018 Spazzio Project & Interiors, ND receipts were disclosed at Rs. 9,15,35,420/- on which total tax of Rs. 18,47,650/- was deducted. The assessment order came to be passed by making an addition of Rs. 4,42,24,072/- on the ground that the assessee had received contractual receipts of Rs. 9,13,23,644/- but it disclosed contract receipts of only Rs. 4,70,99,572/- in it P & L Account and ITR. 4. Aggrieved by the assessment order dated 14/12/2016, the assessee has preferred an appeal before the Ld.CIT(A). the Ld.CIT(A) vide order 09/02/2018 dismissed the appeal filed by the assessee by observing that the assessee had failed to reconcile the contractual receipts as shown in the Form No. 26AS and as claimed by it in the P & L Account and also failed to give proper and satisfactory reply. Further found that even during the appellate proceedings also, the assessee had failed to reconcile the difference in receipt shown in the Form 26AS and profit and loss account. 5. Aggrieved by the order of the Ld.CIT(A) dated 09/02/2018, the assessee preferred the present appeal on the grounds mentioned above. 6. The assessee has preferred the application under Rule 29 of the Income Tax Appellate Rule 1963 by producing the following documents as additional evidence. 4 ITA No. 2321/Del/2018 Spazzio Project & Interiors, ND S. No. Particulars Page Nos. of our PB 1 Copy of revised Form 26 AS of assessee for AY 2014-15. 31-34 2 Copy of Form 26AS of assessee for AY 2012-13 to AY 2020- 21. 46-85 3 Copy of Chart showing total bills raised in respect of customer M/s ALM Infotech Pvt. Ltd. along with its ledger account for AY 2013-14 to AY 2015-16 in the books of assessee and copy of invoices raised in AY 2013-14 and AY 2015-16. 86-93 4 Copy of Chart showing total bills raised in respect of customer M/s Esprit India Pvt. Ltd. along with its ledger account for AY 2012-13 to AY 2015-16 in the book of assessee and copy of invoices for AY 2013-14 and AY 2015-16. 94-98 5 Copy of Chart showing total bills raised in respect of customer M/s DLF Home Developers Ltd. along with its ledger account for AY 2013-14 to AY 2020-21 in the books of assessee 99-114 6 Copy of Chart showing total bills raised in respect of customer M/s DLF Home Universal Ltd. along with its ledger account for AY 2013-14 to AY 2020-21 in the books of assessee. 115- 126 7. Ld. Counsel for the assessee submitted that after the assessment proceedings, TDS entries have been revised by a deductor and the Form 26AS was also revised. Therefore, such revised Form 26AS is now being produced by assessee as additional evidence along with the Form 26AS of the subsequent 5 ITA No. 2321/Del/2018 Spazzio Project & Interiors, ND years which were not available at the time of assessment and thus, could not have been produced at the assessment stage. The Ld. Counsel further submitted that other additional evidences which assessee intend to place are bills, ledger accounts of the parties for AY 2012-13 to AY 2020-21 who have deducted TDS on contract receipts during the relevant year and Form 26AS of preceding years. Thus, the Ld. Counsel for the assessee submitted that the matter may be remanded to the file of Ld. A.O. for de-novo verification by considering the additional evidences produced by the assessee. 8. Per contra, the Ld. DR has agreed for remanding the matter to the file of Ld. A.O. for de-novo consideration. 9. Heard the parties, perused the material on record and gave our thoughtful consideration. On perusal of the documents produced along with the application filed under Rule 29 of the Income Tax Rule 29 of the Income Tax Rules, it is found that after the assessment proceeding, the TDS entries have been revised by the deductor and Form No. 26AS was also revised. The said revised Form No. 26AS was not available on the date of passing of the assessment order. Therefore, we deem it fit to admit the additional evidences produced by the assessee and remand the matter to the file of Ld. A.O. for de-novo consideration of the matter along with the documents produced as additional evidence. Accordingly, the appeal filed by the assessee is partly allowed for statistical purpose with a direction to the Ld. A.O. to consider the additional evidence produced by the assessee and pass appropriate order in accordance with law. Needless to say, the assessee shall be provided with liberty of being heard. 6 ITA No. 2321/Del/2018 Spazzio Project & Interiors, ND 10. In the result, the appeal filed by the assessee is partly allowed for statistical purpose. Order pronounced in the open court on :16 th February, 2023. Sd/- Sd/- ( ANIL CHATURVEDI ) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 16/02/2023 *MEHTA/R. N, Sr. PS* Copy forwarded to :- 1. Appellant 2. Respondent 3. CIT 4. CIT (Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI