ANDALEN ASSOCIATES PVT. LTD,DELHI vs. ITO WARD 2(4), NEW DELHI
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Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC’ NEW DELHI
Before: SHRI SAKTIJIT DEY
IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘SMC’ NEW DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA No.3678/Del/2019 Assessment Year: 2010-11
Andalen Associates Pvt. Vs. ITO, Ward 2(4), Ltd., 39, Housing Society New Delhi South Extension, Part-1, South Delhi, Delhi-110048 PAN :AAACA1501F (Appellant) (Respondent)
Appellant by Shri Abhishek Mathur, Adv. Assessee by Shri Sanjay Kumar, SR. DR
Date of hearing 26.06.2022 Date of pronouncement 31.08.2022
ORDER This is an appeal by the assessee against order dated 25.02.2019
of learned Commissioner of Income-Tax (Appeals)-32, New Delhi
pertaining to assessment year 2010-11.
At the outset, learned counsel appearing for the assessee, on
instructions, did not press ground nos. 1 and 5. Accordingly, ground
nos. 1 and 5 are dismissed.
Rest of the grounds relate to addition of Rs.5,51,500.
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Briefly, the facts are, assessee is a resident corporate entity. On
receiving information available in the individual transaction statement
(ITS) in the system of the department indicating that the assessee has
received fee for professional/technical service amounting to
Rs.5,51,500, which was not offered to income, the assessing officer
reopened the assessment under Section 147 of the Act for the
impugned assessment year. As alleged by the assessing officer,
assessee neither complied with the notice issued under Section 148 of
the Act nor notice issued under Section 142(1) of the Act.
Accordingly, he proceeded to complete the assessment ex parte and
while doing so, he added back the amount of Rs.5,51,500 as the
income of the assessee.
Contesting the aforesaid addition, assessee filed an appeal before
learned Commissioner (Appeals).
In course of proceedings before learned first appellate authority,
assessee contended that while issuing the original Permanent Account
Number (PAN), assessee’s name was wrongly mentioned as Andalen
Associates Pvt. Ltd. instead of Andleys Associates Pvt. Ltd. It was
further submitted that subsequently, assessee made an application for
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correction of name in PAN database and upon consideration of such
application, a fresh PAN was issued correcting the name of assessee
with a new PAN. It was submitted that the income of Rs.5,51,500 was
duly offered to tax in the return of income filed for the impugned
assessment in the correct name of Andleys Associates Pvt. Ltd. and
tax deducted at source on such income in the old PAN was claimed.
Learned Commissioner (Appeals), however, was not convinced with
the submissions of the assessee, hence, sustained the addition made by
the assessing officer.
Before me, learned counsel appearing for the assessee reiterated
the stand taken before the learned first appellate authority. Whereas,
learned Departmental Representative strongly relied upon the
observation of learned Commissioner (Appeals).
I have considered rival submission and perused the material on
record.
For deciding the controversy, the following observations of
learned Commissioner (Appeals) would be relevant:
“8.3 I have carefully considered the observations of AO and submissions of appellant. Appellant has stated that the amount f Rs.5,51,500/- using the new PAN i.e. AAACA5432D was billed
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by the assessee company to M/s. Gemscab Industries Ltd. for professional charges of Rs.5,00,000 and service tax on Rs.51,500/- vide bill dated 04.05.2009 and the said income has been duly accounted for in its income under the head professional receipts and reflected in the P & L account of the company. It has further been submitted that M/s. Gemscab Industries Ltd. has wrongly deducted TDS under old PAN AAACA1510F which can be observed from the TDS certificate issued in Form 16A dated 16.07.2009.
8.4 From the perusal of the PAN allotment letter dated 30.01.1996, it is seen that PAN- AAACA1510F has been allotted in the name of M/s. Andalen Associates Pvt. Ltd. Further, it is seen that PAN- AAACA5432D has been allotted to M/s. Andleys Associates Pvt. Ltd. However, date of allotment is not mentioned in the letter placed at page 4 of the enclosure filed along with written submissions. Therefore, it is not clear since when appellant has been using the PAN-AAACA5432D. AO in his remand report has stated that AR was asked to give the date of allotment of PAN-AAACA5432D but AR expressed his inability. AO has further stated that PAN AAACA5432D was allotted to appellant on 27.08.1996 and PAN-AAACA1501F was allotted to assessee on 06.12.1995 and it was using both PANs. From the perusal of bill raised by appellant, it is seen that appellant has raised the bill on M/s. Gemscab Industries Ltd. under the PAN- AAACA5432D but TDS has been deducted by M/s. Gemscab Industries Ltd. on PAN-AAACA1501F. It is not clear how M/s. Gemscab Industries Ltd. has deducted against PAN- AAACA1501F when appellant has raised the bill using PAN- AAACA5432D. Therefore, I am in agreement with A.O. has also stated that appellant has been using PAN- AAACA1501F by filing return up to A.AY. 2003-04 under this PAN where it has already bee4n allotted another PAN- AAACA5432D. Further, it is seen that it is not clear whether the amount has been offered by appellant in its ITR for A.Y. 2010-11 as in the computation of income filed on page 6 of enclosure filed along with written submissions, it is seen that computation
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of income is against PAN- AAACA1510F (copy enclosed). Therefore, it is crystal clear that appellant has also been using PAN- AAACA1510F and the income/receipt against that PAN has not been disclosed by appellant. Therefore, there is no basis in the claim of appellant. Accordingly, appeal is dismissed.”
As could be seen from the aforesaid observations of learned
Commissioner (Appeals), the case of assessee is, the income of
Rs.5,51,500 was offered to tax in the return of income filed for the
assessment year 2010-11 in the name and Andleys Associates Pvt.
Ltd., which is the correct name of the assessee. The observations of
learned Commissioner (Appeals) further reveal that, though, the bill of
Rs.5,51,500 raised on M/s. Gemscab Industries Ltd. was by Andalen
Associates Pvt. Ltd. with PAN: AACA5432D, however, M/s.
Gemscab Ind. Ltd. deducted TDS against PAN: AAACA1501F
claimed to be the PAN issued in the incorrect name of M/s. Andalen
Associates Pvt. Ltd. From the material placed in the paper book, it is
observed, upon consideration of an application filed by assessee
requesting for correction/change in particulars of PAN Card, the
department has issued a fresh PAN in the name of M/s. Andleys
Associates Pvt. Ltd. with PAN: AAACA5432D. It is the claim of
assessee before the learned first appellate authority as well as before
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me that the income of Rs.5,51,500 has been offered to tax in the return
of income filed by M/s. Andleys Associates Pvt. Ltd. having PAN:
AAACA5432D.
Learned counsel appearing for the assessee has asserted before
me that no other return of income has been filed in the name of M/s.
Andalen Associates Pvt. Ltd. for the impugned assessment year either
showing the income or claiming the TDS on the amount of
Rs.5,51,500. It was further submitted that assessee is ready and
willing to furnish an affidavit before the assessing officer to this
effect.
Keeping in view the aforesaid submissions of the learned
counsel appearing for the assessee, I restore the issue to the file of the
assessing officer for reconsidering assessee’s claim. Assessee is
directed to furnish an affidavit along with other corroborative
evidences to support its claim that the income of Rs.5,51,500 received
from M/s. Gemscabs Industries Ltd. was actually offered to tax in the
return of income filed for the impugned assessment year and further
the TDS on such income was claimed only by M/s. Andleys
Associates Pvt. Ltd. and no other return of income has been filed in
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the name of Andalen Associates Pvt. Ltd. claiming credit for TDS on
the income of Rs.5,51,500. Upon furnishing of such affidavit and
evidences, the assessing officer shall make necessary inquiry and
factually verify assessee’s claim and decide the issue accordingly.
Needless to mention, assessee must be afforded reasonable
opportunity of being heard before deciding the issue.
With the aforesaid observations, grounds are allowed for
statistical purposes.
In the result, the appeal is allowed for statistical purposes.
Order pronounced in the open court on 31st August, 2022.
Sd/- (SAKTIJIT DEY) JUDICIAL MEMBER
Dated: 31st August, 2022. Mohan Lal Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi
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Sl. No. Particulars Date 1. Date of dictation (Order drafted through Dragon software): 24.08.2022 2. Date on which the draft of order is placed before the 26.08.2022 Dictating Member: 3. Date on which the draft of order is placed before the other Member: 4. Date on which the approved draft of order comes to 31.08.2022 the Sr. PS/PS: 5. Date of which the fair order is placed before the 31.08.2022 Dictating Member for pronouncement: 6. Date on which the final order received after having 31.08.2022 been singed/pronounced by the Members: 7. Date on which the final order is uploaded on the 31.08.2022 website of ITAT: 8. Date on which the file goes to the Bench Clerk 31.08.2022 9. Date on which files goes to the Head Clerk: 10. Date on which file goes to the Assistant Registrar for signature on the order: 11. Date of dispatch of order:
