SUVENDU CHATTERJEE,KOLKATA vs. D.C.I.T.,CIRCLE-48, KOLKATA

Shri Miraj D. Shah, ld.AR appeared on behalf of the assessee and Shri Shankar Naskar, ld. Sr. DR appeared on behalf of the revenue.

The appeal of the assessee is delayed by 92 days. In this regard, the assessee has filed an application for condonation of delay supported with an affidavit stating sufficient reasons which are plausible and not found to be false. Accordingly, the delay of 92 days is condoned and the appeal is admitted for hearing.

It was submitted by the ld. AR that the AO has made disallowance of Rs.19,55,401/- representing alleged service tax received but not deposited to the account of the Government. Consequently, the AO has added the same as the income of the assessee. It was the submission that 2 the ld. CIT(A) has confirmed the order of the AO without considering the submission of the assessee that the assessee has not received the said service tax amount. The assessee has also filed an affidavit before me which reads as under :-

3 5. It was the submission that he has no objection if the issues are restored to the file of AO for verification as to whether the assessee has received the said service tax.

I have considered the rival submissions. A perusal of the facts shows that the assessee has filed this affidavit on 8th July, 2025. The assessee has claimed that the assessee has not received the said service tax amount of Rs.19,55,401/-. The assessee submits that the said amount is also shown in the balance sheet of the assessee as receivable. Consequently, I am of the view that this needs verification and, therefore, issues are restored to the file of the ld. AO for verification after granting the assessee adequate opportunity of being heard. The AO shall examine the bills by which the services taxes have been raised and how much of the said bills have been paid and received. If the service tax which has been recorded by the assessee is shown to have not been received then no addition is liable to be made on this count. Should the converse be found in view of the affidavit now filed before the Tribunal, the Assessing Officer shall draw adverse inference in accordance with law.

In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 24/07/2025. (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 24/07/2025 Prakash Kumar Mishra, Sr.P.S.