PERI INDIA PRIVATE LIMITED,MUMBAI vs. DCIT, CIRCLE 13(1) (2), MUMBAI, MUMBAI

Brief facts of the case are that the assessee filed return u/s. 139 declaring total income of Rs. 87,02,920/-. The case was selected for scrutiny through CASS and accordingly, the assessment was completed with addition amounting to Rs. 1,27,61,000/- for non-deduction of TDS on by contravening of section 40(a)(ia) of the Act. The assessee submitted that on the required details from time to time was asked by Ld.AO. During the assessment proceeding show cause noticedated 11.03.2024 at 5.32PM wasissued asking appellant to submit some more details for following two issues before 6.00 PM on13.03.2024 i.e. within two days:- (i) Large Foreign Outward Remittances. (ii) High Liabilities. The assessee submitted the reply to show caused notice on 12.03.2024 and 13.03.2024. It is also submitted that Ld.AO allowed two days’ time to reply the show caused notice for proposed verification of income amounting to Rs. 5,37,97,590/- which is not at all reasonable. Finally, Ld.AO made an addition amounting to Rs. 1,27,61,000/- being expenditure in foreign currency for reasons of non-deduction of TDS u/s 195 of the Act. It is submitted that Ld.AO has taken the figure of Rs. 1,27,61,000/- from notes No. 24 (expenditure in foreign currency) of financial statement of the assessee of the relevant previous year fled during the assessment proceeding. The amount includes multiple items details of which are as under. (i) Technical support service 1,26,14,893/-, (ii) Commission and brokerage 78,638/- (iii)Travelling and Conveyance 67,604/- which come total amount of Rs.1,27,61,135/- and which is rounded up as per Schedule 3 Companies Act, 2013 amounting to Rs. 1,27,61,000/-. But fornon-prosecution the appeal of the assessee was rejected. Being aggrieved the assessee file the appeal before us.

The Ld. AR submitted that the Ld. AO did not afford a reasonable opportunity to the assessee to comply with the statutory notices issued during the course of assessment proceedings. It was contended that the Ld. AO erroneously adopted a sum of Rs.1,27,61,000/– from Note No. 24, relating to “Expenditure in Foreign Currency” appearing in the audited financial statements of the assessee, and on that incorrect assumption proceeded to conclude that there was non-deduction of tax at source. The Ld. AR further submitted that during the entire course of the proceedings, the assessee could not produce the necessary documentary evidence before any of the revenue authorities, as adequate opportunity was not granted. It was thus pleaded that the principles of natural justice were violated. The Ld. AR also pointed out that although the Ld. CIT(A) issued notices of hearing, the same remained uncomplied due to genuine reasons, and consequently, the Ld. CIT(A) passed the impugned order ex parte without the benefit of the assessee’s submissions or supporting evidences. In these circumstances, the Ld. AR prayed that the matter may be remanded to the file of the Ld. AO for fresh verification and adjudication in accordance with law, after granting a reasonable opportunity of being heard to the assessee. 4. The Ld.DR argued and stands in favour of the revenue authority. 5. We have heard rival submission and considered the document available on record. We find that Ld.AO added back amount to Rs. 1,27,61,000/- for contravening provision section 40(a)(ia) for non-deduction of TDS under section 195 of the Act. Ld.AR in argument stated that Ld.AO had withoutproper investigation had picked up the expense like traveling and conveyance for non- deduction of TDS which is not at all applicable.

On the other hand, Ld. CIT(A) passed an ex-parte order and the reasonable opportunity for assessee was denied which cause valuation of the natural justice. Further, the Ld. AO also had not granted proper time to assessee to submit the documents related to its argument. In our considered view,the interest of justice, we deem it appropriate to restore the matter to the file of the Ld. AO. The assessee is directed to furnish all relevant documents and evidence, if any, before the Ld. AO. The Ld. AO shall consider all such documents and evidence in accordance with law and decide the matter afresh after granting a reasonable opportunity of being heard to the assessee. We make it clear that we have not expressed any opinion on the merits of the case, so as not to prejudice the proceeding before the assessing authority. It is further directed that the assessee shall be diligent and fully cooperative in the set-aside proceedings to ensure expeditious disposal of the assessment. Accordingly, the matter is restored to the file of the Ld. AO for fresh adjudication. 7. In the result, the appeal of the assessee bearing ITA No.5689/MUM/2025 is allowed statistical purpose. Order pronounced in the open court on 13th November 2025 (VIKRAM SINGH YADAV) JUDICIAL MEMBER Mumbai,दिन ांक/Dated: 13/11/2025 Disha Raut, Stenographer

अपील र्थी/The Appellant , 2. प्रदिव िी/ The Respondent. 3. आयकरआयुक्त CIT 4. दवभ गीयप्रदिदनदि, आय.अपी.अदि.,म ुंबई/DR, ITAT,