RESPONSE INDIA PVT. LTD.,KOLKATA V. D.C.I.T., CIRCLE - 11(1), KOLKATA

ITA 2071/KOL/2024

AI Insights

The case involves Response India Pvt. Ltd., which appealed against the order of the National Faceless Appeal Centre (CIT(A)) concerning the assessment year 2006-07. The primary issue was a discrepancy between the income reported by the assessee and the income reflected in the TDS certificates. The Assessing Officer had initially completed the assessment under section 143(3) of the Income Tax Act but later reopened it under section 147 after suspecting that income had escaped assessment. The CIT(A) upheld the Assessing Officer's decision, leading to the current appeal. The Tribunal found that the assessee had not adequately participated in the earlier proceedings and thus remanded the case back to the CIT(A) for a thorough examination with the opportunity for the assessee to present additional evidence.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 36039 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 07-10-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; TDS; Competent authority
• Section: 147; 143(3); 143(2); 250

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA Before Shri Sonjoy Sarma, Judicial Member and Shri Rakesh Mishra, Accountant Member I.T.A. No.2071/Kol/2024 Assessment Year: 2006-07 Response India Pvt. Ltd.……………........………………....Appellant 103, Tivoli Court, 1C Ballygunge Circular Road, Ballygunge, K Kolkata – 700019. [PAN: AACCR6178B] vs. DCIT, Circle-11(1), Kolkata...…….…............................…..…..... Respondent Appearances by: Shri Miraj D. Shah, AR, appeared on behalf of the assessee. Shri Abhijit Adhikari, JCIT, Sr. DR, appeared on behalf of the Revenue. Date of concluding the hearing : November 28, 2024 Date of pronouncing the order : November 28, 2024 आदेश / ORDER Per Sonjoy Sarma, Judicial Member: The present appeal has been preferred by the assessee against the order dated 07.08.2024 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The brief facts of the case are that the assessee filed its original return of income declaring a total income of Rs.3,06,250/-. The assessment was completed u/s 143(3) of the Act. Subsequently, the Assessing Officer recorded reasons to believe that certain income has escaped assessment. Subsequently, proceedings u/s 147 of the Act was initiated after obtaining requisite approval from the competent authority u/s 151 of the Act. The assessee through a letter dated 06.11.2012 requested that the original return to be treated as return filed in compliance to the notice u/s 148. Subsequently, notices u/s 143(2) and 142(1) of the Act were issued to the assessee. In compliance to the I.T.A. No.2071/Kol/2024 Assessment Year: 2006-07 Response India Pvt. Ltd 2 notices, the ld. AR sought time to respond but failed to appear next scheduled date. Accordingly, the Assessing Officer proceeded to complete the assessment based on available records observing a discrepancy in income reported by the assessee. The Assessing Officer noted that the assessee had claimed TDS credit of Rs.4,78,900/- but failed to book corresponding income in the Profit & Loss A/c. the Assessing Officer found that the income credited by the assessee was Rs.75,90,370/- whereas TDS certificate reflected income of Rs.99,71,318/- resulting in a discrepancy of Rs.23,80,948/. As the assessee has failed to provide credible evidence to reconcile this difference, the Assessing Officer passed best judgment assessment u/s 144 r.w.s. 147 of the Act. 3. Aggrieved by the above order, the assessee filed an appeal before the ld. CIT(A) but failed to furnish adequate explanations and also failed to reconcile the discrepancy. Therefore, the ld. CIT(A) dismissed the appeal of the assessee. 4. Dissatisfied with the above order, the assessee has come in appeal before this Tribunal stating that certain documents were submitted before the ld. CIT(A) in order to substantiate its claim but these were not properly considered by the lower authorities. Therefore, the ld. AR of the assessee sought one more opportunity before us to present its case so as to reconcile the discrepancy before the ld. CIT(A). He, therefore, prayed before the Bench that the matter may be remanded back to the file of the ld. CIT(A) to allow the assessee to substantiate its claim with appropriate evidences. 5. On the other hand, the ld. DR did not object to such prayer made by the ld. AR before the Bench. I.T.A. No.2071/Kol/2024 Assessment Year: 2006-07 Response India Pvt. Ltd 3 6. We, after hearing the rival submissions and reviewing the materials on record, find that the assessee did not able to adequately participate before the Assessing Officer and also ld. CIT(A) which led to ex parte assessment. The ld. AR has duly asserted that he has sufficient documents to reconcile the discrepancy. Therefore, in the interest of natural justice and in order to provide a fair opportunity, we deem it appropriate to remand the matter back to the file of the ld. CIT(A). The ld. CIT(A) is directed to reconcile the discrepancy after giving reasonable opportunity of being heard to the assessee. The assessee is also directed to furnish all necessary documents including reconciliation statement to substantiate its claim without fail. The assessee is also directed to cooperate fully with the ld. CIT(A) in the remand proceedings. 7. In terms of the above, the appeal of the assessee is allowed for statistical purposes. Kolkata, the 28th November , 2024. Sd/- Sd/- [Rakesh Mishra] [Sonjoy Sarma] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 28.11.2024. RS Copy of the order forwarded to: 1. Response India Pvt. Ltd 2. DCIT, Circle-11(1), Kolkata 3.CIT (A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches "