Shashikant Ramnaresh Yadav, Pune V. Income-Tax Officer, Ward 7(3), Pune

ITA 819/PUN/2022

AI Insights

The case involves Shashikant Ramnaresh Yadav, the appellant, who contested the addition of Rs. 59,20,350 to his income for the Assessment Year 2014-15, as confirmed by the NFAC. The addition was based on a discrepancy between the gross receipts reported in his books and those reflected in Form 26AS. The appellant argued that the adjustments made were not prima facie and required detailed discussion and application of mind, which was not provided. The Tribunal noted that the NFAC acknowledged the correctness of the appellant's submissions but dismissed the appeal due to lack of supporting evidence. The Tribunal found merit in the appellant's request for a re-adjudication, emphasizing the need for a fair opportunity to present supporting documents.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124422 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 24-01-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 14-11-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Principle of natural justice; TDS; Set aside
• Section: 143(3); 44AB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA No. 819/PUN/2022 : A.Y. 2014-15 Shashikant Ramnaresh Yadav F.No. 6, S.No. 49/1 SB Om Sankul, Wadgaonsheri, nagar Road, Pune-411 014 PAN : ABMPY 6115 F Appellant Vs. The I.T.O. Ward 7(3) Pune Respondent Appellant by : Shri Suhas Bora Respondent by : Shri M.G. Jasnani Date of Hearing : 25-01-2023 Date of Pronouncement : 31-01-2023 ORDER PER SHRI PARTHA SARATHI CHAUDHURY, JM This appeal preferred by the assessee emanates from order of the National Faceless Appeal Centre (NFAC), Delhi, dated 27-12-2021 for assessment year 2014-15 as per the following grounds of appeal. “On facts and in law The learned CIT(A) has erred in dismissing assessee's appeal and confirming the action of the AO of making addition of Rs.59,20,350/- on account of difference of gross receipts as per books of accounts and Form 26AS by way of Rectification Order U/Sec.154 of the Act by not appreciating that: a. Adjustments made are not prima facie adjustments. b. Adjustments made are on the issue which requires long drawn discussion and application of mind. c. Order has been passed without giving sufficient opportunity to the appellant and which is against principle of natural justice. 2. The learned CIT(A) has further erred in confirming the action of the AO of making addition of Rs.59,20,350/- only on the ground that though the appellant's submission appears to be correct, he had not come up with any sort of supporting evidence or case laws in support of his contentions/grounds of appeal in his submissions. 3. Without prejudice to above Ground No.1 & 2, the learned CIT(A) has further 2 ITA 819/PUN/2022 Shashikant R. Yadav A.Y. 2014-15 erred in making addition of Rs.59,20,350/- in A Y 2014- 15 even though the said income has been disclosed by the appellant in next year i.e. A Y 2U 15-16 and accordingly only TDS claimed in respect of such income in A Y 2014-15 should have been disallowed. 4. Without prejudice to above Ground No.1 to 3, the Order of the CIT(A) confirming the order passed by the AO U/Sec.154 of the Act be restored to the AO with a direction that the income be taxed as per Section 5 of the Act in the year in which it is accrued and the credit for TDS may be given accordingly. 5. The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal.” 2. The relevant facts are that the assessee is carrying on a business of contract and work contract. The assessee has filed income tax return of A.Y 2014-15 on 23-11-2014 declaring Rs. 14,17,610/-. The assessee filed audit report u/s 44AB of the Act showing total sales during the year of Rs. 2,33,45,55/-. The assessment completed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) on 28-06-2016 made an addition of Rs. 2,69,824/- and the assessee has paid tax of Rs. 39,700/-. 3. The assessee has shown total receipt from business at Rs.2,33,45,800/- in return of his income, whereas the gross receipts as per 26AS is Rs.2,95,35,974/-. Thus, there is difference of Rs. 61,90,174/- (2,95,35,974 - 2,33,45,800) in receipts as per return of income and 26AS. Out of total difference gross receipts of Rs. :61,90,174/-, the assessee shown to the tune of Rs. 59,20,350/- in the next A.Y. i.e. 2015-16 but entire TDS claimed during this AY. i.e. A.Y 2014-15. During the course of assessment proceeding u/s. 143(3) dated 28.06.2016 the AO added an amount of Rs. 2,69,824/-( Rs. 61,90,174- Rs. 59,20,350) to the income of assessee. Further, TDS of Rs. 3,15,299/- has been deducted on gross receipts of Rs.2,95,35,974/-. The entire income should be offered to tax in the year in which TDS is claimed. i.e. AY. 2014-15. As the entire TDS credit of Rs.3,15,299/- has been allowed to the 3 ITA 819/PUN/2022 Shashikant R. Yadav A.Y. 2014-15 assessee, the entire differential amount of Rs.61,90,174/- (Rs.2,95,35,974- Rs.2,33,45,800) also required to be added to the total income of AY 2014-15. A letter issued to the assessee on 05.03.2021 to rectify the mistake apparent from record. However, no response has been received from the assessee. Since the mistake is apparent from record and no response is received from the assessee, the mistake is hereby rectified by the AO. as under:- Income as per return filed Rs. 14,17,610/- Addition as per order u/s 143(3) Rs. 2,69,824/- Addition made as per this order Rs. 59,20,350/- Total assessed income Rs. 76,07,350/- 4. Being further aggrieved, assessee preferred an appeal before the NFAC and the addition made by the ld. A.O was sustained as per the reasoning mentioned in the order passed by the NFAC. 5. At the time of hearing before us, the ld. A.R. submitted that all the details regarding total gross sales along with audit report u/s 44AB of the Act have been duly submitted during the assessment proceedings and accordingly one opportunity may be given to the assessee to explain regarding the difference of total receipts from business as filed in the return of income and the gross receipts as per 26AS. The ld. D.R did not raise any objection if the matter is remanded to the file of the ld. A.O for re-adjudication. 6. Having heard the parties herein and considering the facts and circumstances, we observe that even the NFAC has acknowledged at para 3.3 that the assessee‟s submissions appear to be correct However, since supporting evidences were not provided the appeal was dismissed. Therefore, the genuinity of the claim of the assessee cannot be doubted on the face of it. . In the interest of justice, therefore, we set aside the order of the NFAC and remand the matter back to the file of the ld. A.O for verification vis-a-vis facts of the assessee‟s case as regards the return of income filed and 26AS. The ld. A.O shall re-adjudicate as per 4 ITA 819/PUN/2022 Shashikant R. Yadav A.Y. 2014-15 law while complying with the principles of natural justice and at the same time, we direct the assessee to furnish the relevant documents/materials before the ld. A.O to represent the matter on merits. The grounds of appeal are allowed for statistical purposes. 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 31 st January 2023 Sd/- sd/- (INTURI RAMA RAO) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune; Dated : 31 st January 2023 Ankam Copy of the Order forwarded to : 1. The Assessee 2. The Respondent 3. The NFAC Delhi 4. The Pr. CIT concerned 5. DR, ITAT, „B‟ Bench Pune 6. Guard File. //सत्यापित प्रपत// True Copy// BY ORDER, Sr. Private Secretary /// TRUE COPY /// ITAT, Pune 5 ITA 819/PUN/2022 Shashikant R. Yadav A.Y. 2014-15 Date 1 Draft dictated on 25-01-2023 Sr.PS 2 Draft placed before author 26-01-2023 Sr.PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on 31-01-2023 Sr.PS/PS 7 Date of uploading of order 31-01-2023 Sr.PS/PS 8 File sent to Bench Clerk 31-01-2023 Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order