TEMPINDIA STAFFING SERVICES PRIVATE LIMITED,GURUGRAM V. ADDL/JCIT(A)-3, BENGALURU

ITA 325/DEL/2025

AI Insights

The case involves Tempiindia Staffing Services Private Limited appealing against the order of the ld. Addl./Joint CIT (Appeals)-3, Bangalore, which pertained to the Assessment Year 2016-17. The primary contention was regarding the short deduction of TDS on salary and rent by the Assessing Officer under sections 201/201(1A) of the Income-tax Act, 1961. The Assessing Officer had initially made a demand of Rs.73,55,002 for salary and Rs.12,047 for rent due to alleged short deductions. The assessee's appeal to the ld. JCIT (A) resulted in partial relief concerning the salary deductions but sustained the rent deductions. The Tribunal found that the assessee was not adequately heard during the appellate proceedings and thus remitted the matter back to the Assessing Officer for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705537 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2016-2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Keywords: Opportunity of being heard; TDS

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER and SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No.325/DEL/2025 (Assessment Year: 2016-17) Tempiindia Staffing Services Private Limited, vs. DCIT, TDS Circle, G – 118, Sushant Lok Phase 3, Gurgaon. Sector 56, Near Boomansal Plaza Mall, Gurgaon – 122 002 (Haryana). (PAN : RTKT03513G) (APPELLANT) (RESPONDENT) ASSESSEE BY : None REVENUE BY : Shri Rajesh Kumar Dhanesta, Sr. DR Date of Hearing : 30.06.2025 Date of Order : 30.06.2025 O R D E R PER S.RIFAUR RAHMAN, ACCOUNTANT MEMBER : 1. This appeal is filed by the assessee against the order of ld. Addl./Joint CIT (Appeals)-3, Bangalore [hereinafter referred to as ‘ld. JCIT (A)] dated 02.12.2024 for Assessment Year 2016-17. 2. At the time of hearing, it is brought to our notice that the Assessing Officer has initiated the proceedings under section 201/201 (1A) of the Income-tax Act, 1961 (for short ‘the Act’) for short deduction of TDS on salary and rent. After issue of several notices and non-receipt of any compliance from the 2 ITA No.325/DEL/2025 assessee, the Assessing Officer proceeded to make the demand of Rs.73,55,002/- towards deduction of salary and Rs.12,047/- for short deduction of rent. 3. Aggrieved with the above order, assessee preferred an appeal before the ld. JCIT (A)-3, Bangalore and ld. JCIT (A) issued notices for hearing on two occasions. In response, assessee has submitted written submissions. Based on the above written submissions, ld. JCIT(A) has given partial relief to the assessee of short deduction of salary and sustained the addition of short deduction of rent. It was submitted that ld. JCIT (A) has completed the assessment without granting video conferencing and rejecting of submissions before him and it was prayed that ld. JCIT (A) should have remanded the matter to the Assessing Officer. 4. On the other hand, ld. DR of the Revenue objected to the above submissions and submitted that assessee has not utilised the opportunities given during assessment proceedings as well as appellate proceedings. 5. Considered the submissions of ld. DR of the Revenue and material placed on record. We observe that Assessing Officer has raised the demand based on the material before him without the participation of the assessee even though assessee has not complied by submitting relevant information. Even during appellate proceedings, assessee has asked for video conferencing and the case of the assessee was decided only on the basis of written submissions. After 3 ITA No.325/DEL/2025 considering the facts available on record and the issue relating to short deduction of TDS, in our view,, assessee should be given one more opportunity of being heard. Therefore, we are inclined to remit this issue to the file of Assessing Officer with a direction to verify the submissions, after giving proper opportunity of being heard to the assessee. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 30TH day of June, 2025 after the conclusion of the hearing. Sd/- sd/- (SATBEER SINGH GODARA) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 30.06.2025 TS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "