PREMNATH SINGH,HOOGHLY vs. I.T.O., WARD - 23(3), HOOGHLY, HOOGHLY

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ITA 634/KOL/2022Status: DisposedITAT Kolkata17 January 2023AY 2014-20153 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the difference might be due to TDS on service charges and PF reimbursement, which the assessee claimed were not part of turnover. The issue was restored to the AO for examination and decision.

What were the facts?

The assessee appealed against an ex-parte order of the CIT(A) which upheld an addition made by the AO on account of undisclosed turnover. The assessee contended that the difference was due to service charges and PF reimbursement on which TDS was deducted, and not actual turnover.

What were the issues?

Whether the difference between disclosed turnover and Form 26AS was due to non-turnover items like service charges and PF reimbursement, and if so, whether the addition was justified.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH: KOLKATA

Before: Shri Rajesh Kumar & Shri Sonjoy Sarma]

This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-6, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 31.12.2018 for the AY 2014-15.

2.

Issue raised by the assessee in ground no. 1 is against the ex-parte order being cryptic and non speaking passed by the Ld. CIT(A) thereby upholding the order of AO and the issue raised in ground no. 2 is without prejudice wherein the addition on

3.

At the outset, the Ld. Counsel for the assessee stated that the addition was made of Rs. 31,41,488/- by the AO on account of turnover as disclosed in the books of accounts of the assessee vis-à-vis the information as per Form 26AS. The Ld. A.R. stated that there was no actual difference in the turnover as disclosed by the assessee and the difference was in fact on account of service charges and reimbursement of PF on which TDS has been deducted. The ld. A.R therefore prayed that the addition may kindly be deleted and AO may be directed to verify and delete the addition.

4.

The Ld. D.R on the other hand relied on the order of authorities below.

5.

After hearing the rival contentions and perusing the material on record, we find that the difference in the turnover is merely on the account deduction of TDS on service tax and reimbursement of PF which were stated by the counsel of the assessee to be not part of the turnover. Since the issue required to be examined at the end of the AO. Accordingly we restore the issue back to the file of the AO to examine the same and decide accordingly. Needless to say that if this is not the part of the turnover even if the TDS is deducted on service tax, reimbursement of PF then the same is to be deleted.

6.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order is pronounced in the open court on 17th January, 2023

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