SCB STEEL (P) LTD. (FORMERLY CBS ENERGY SYSTEMS PVT. LTD.),NEW DELHI vs. ACIT, CIRCLE-5(2), NEW DELHI

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ITA 8001/DEL/2019Status: DisposedITAT Delhi09 April 2025AY 2014-15Bench: SHRI ANUBHAV SHARMA (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)5 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal restored the issue of bogus purchases to the AO for fresh adjudication due to defects in profit estimation methodology. A fresh calculation was directed for the 26AS mismatch. The CIT(A) had allowed the TDS disallowance subject to verification.

What were the facts?

The assessee is in appeal against the order of the CIT(A) upholding additions made on account of bogus purchases, 26AS mismatch, and disallowance for non-deduction of TDS. The assessee did not appear for the hearing, and arguments were heard only from the Revenue.

What were the issues?

Whether the additions made by the AO and upheld by the CIT(A) regarding bogus purchases, 26AS mismatch, and TDS disallowance are sustainable. The assessee's failure to appear before the Tribunal.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES: G : NEW DELHI

Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL

For Respondent: Shri Sahil Kumar Bansal, Sr. DR
Hearing: 06.02.2025Pronounced: 09.04.2025

Assessment Year: 2014-15 SCB Steel (P) Ltd. Vs ACIT, (Formerly CBS Energy Systems Circle-5(2), Pvt. Ltd.), New Delhi. S.B. Garg & Co.,CAs, 20/17, Shakti Nagar, New Delhi – 110 007. PAN: AADCC2468C (Appellant) (Respondent) Assessee by : None Revenue by : Shri Sahil Kumar Bansal, Sr. DR Date of Hearing : 06.02.2025 Date of Pronouncement : 09.04.2025 ORDER

PER ANUBHAV SHARMA, JM:

1.

This appeal is preferred by the assessee against the order dated 26.07.2019 of the Commissioner of Income-tax (Appeals)-2, New Delhi (hereinafter referred to as the ld. First Appellate Authority or ‘the Ld. FAA’ for short) in Appeal No.10678/16-17 arising out of the appeal before it against the order dated 28.12.2016 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ACIT, Circle 5(2), New Delhi (hereinafter referred to as the Ld. AO).

2.

None appeared for the assessee as the case was called for hearing and the record shows that after 16.05.2024 none is appearing for the assessee while notices have been repeatedly issued. Accordingly, arguments of ld. DR were heard who supported the findings of the ld. tax authorities below.

3.

On going through the material before us, we find that the return of the assessee was picked up for scrutiny assessment and addition on account of bogus purchase, 26AS mismatch and disallowance on account of non-deduction of TDS were made which have been upheld by the ld.CIT(A) for which the assessee is in appeal.

4.

After taking into consideration the findings of ld.CIT(A), qua the grounds as raised, we find that with regard to the addition made on account of bogus purchases, the issue has been restored to the files of AO on the basis of defect in methodology of estimation of profit. Thus, the ground No.4 with sub-grounds has no substance as the assessee will have opportunity to raise its contentions afresh before the AO.

4.1 As with regard to the addition on account of 26AS mismatch, a fresh calculation has been directed. Thus, the ground No.5 as raised have no substance.

4.2 Lastly, with regard to the disallowance on account of non-deduction of TDS, CIT(A) has allowed the claim subject to verification. Thus, the ground No.6 as raised before us has no substance.

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