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Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI
Before: SHRI KUL BHARAT & SHRI PRADIP KUMAR KEDIA
This appeal, by the assessee, is directed against the order of learned CIT(Appeals)-1, Noida dated 17.5.2018 pertaining to the assessment year 2015-16.
The assessee has raised following grounds of appeal:
M/s Plan Journeys p. ltd. Vs. DCIT “1. That the Ld Commissioner of Income Tax (Appeals) has erred in law and on facts in upholding the assessment framed by the Ld Deputy Commission of Income Tax u/s 143(3) of Income Tax Act 1961 in making addition of Rs. 41,69,404/- by taking recourse to the provisions of section 143(3) of the Income Tax Act 1961.
That the Ld Commissioner of Income Tax ( Appeal) has shown hasty to pass the order without giving any adequate opportunities on matter which was repeatedly requested for reasonable reason of turnover mismatch.
3. That the Ld CIT(A) has failed to acknowledge assessee’s submission, the explanation submitted by the statutory auditor and was barred of being given reasonable opportunity before resorting to the belief for upholding the addition of Rs. 41,69,404/- by applying the provision of Section 143(3) of Income Tax Act 1961.
4. That the Ld CIT (A) has failed to acknowledge the facts of the case he ought to have accepted the turnover as per return of income with the reconciliation of turnover for difference between service tax return and turnover as per income tax return and other sufficient evidences which has been produced during assessment from time to time .
5. That in the impugned order, the finding of the Ld CIT (A) regarding turnover mismatch in question is ambiguous.”
2. The only effective ground is against sustaining the addition of Rs. 41,69,404/-. Facts giving rise to the present appeal are that in this case return of income was filed on 29.09.2015 declaring total income at Rs. 35,92,667/-.
Thereafter, the case of the assessee was selected for scrutiny assessment and the assessment u/s 143(3) of the Income-tax Act, 1961 (in short “the Act”) was framed vide order dated 27.11.2017. Thereby the Assessing Officer made addition of Rs. 41,69,404/- on account of under declaration of turnover. Aggrieved against it the M/s Plan Journeys p. ltd. Vs. DCIT assessee preferred appeal before the learned CIT(Appeals), who sustained the addition. Aggrieved against it the assessee is in appeal before this Tribunal.
At the time of hearing no one appeared on behalf of the assessee. However, the notice of hearing was duly sent by speed post which was returned by the postal authorities. Under the circumstances the appeal is being decided on the basis of the material available on record.
The learned DR supported the orders of the authorities below and submitted that there is no infirmity in the orders of authorities below. Learned DR further submitted that there was difference between the turnover reported before the Service Tax authorities and before the assessing authority under the Act.
We have heard the learned DR and perused the material available on record.
It is seen from the impugned order that the learned counsel sought time to file clarification regarding different turn-over being disclosed before the Service Tax Authorities. Therefore, looking to the totality of facts and to sub-serve the interests of natural justice, we hereby set aside the impugned order and restore the grounds of appeal to the file of learned CIT(Appeals) to decide it afresh after providing adequate opportunity to the assessee. The grounds of appeal are allowed for statistical purposes.
M/s Plan Journeys p. ltd. Vs. DCIT 6. Appeal of assessee is allowed for statistical purposes.
Order pronounced in open court on 13th July, 2022.