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

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 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