INDO GULF PEST CONTROL,NEW DELHI vs. ITO, WARD- 12(2), NEW DELHI

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ITA 605/DEL/2018Status: DisposedITAT Delhi19 June 2018AY 2014-155 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 held that the difference of Rs. 2,11,789/- could not be attributed to minor discrepancies, especially since the returns were based on audited accounts. Therefore, the addition made by the AO and confirmed by the CIT(A) was upheld.

What were the facts?

The Assessing Officer (AO) made an addition of Rs. 2,11,789/- due to a difference between the Service Tax Return and the Income Tax Return filed by the assessee. The assessee failed to provide a satisfactory explanation for this discrepancy.

What were the issues?

Whether the difference between Service Tax Return and Income Tax Return figures, when unexplained, constitutes an addition to income. Whether minor discrepancies can justify such a difference in audited figures.

Which sections of the Income-tax Act were involved?

None explicitly mentioned as the core issue was factual explanation

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC’: NEW DELHI

Before: SHRI O.P. KANT & SHRI KULDIP SINGH

Hearing: 14.06.2018

Malviya Nagar(hereinafter referred to as ‘the Assessee’) by filing the present appeal, sought to set aside the impugned order dated 16.11.2017 qua Assessment Year 2014-15 passed by Ld. CIT(A)-22, New Delhi- 110002 on the grounds that:-

. Indo Gulf Pest Control, New Delhi.

“1. That the order of the learned CIT(A) and A.O are bade in law and facts.

2.

That the figure as per Service Tax Return was liable to be altered and the final audit was conducted and Debtors reconciliation and issue of debit and credit notes were not considered.

3.

The figure of service of Rs. 4,53,86,614/- as per audited figured and as per 26 As which were the same should have been taken and not as per Service Tax Return. The addition of Rs. 2,11,789 is prayed to be deleted.

4.

Any other Grounds of Appeal that may be relevant.”

2. Briefly stated the facts necessary for adjudication of the controversy at hand are: The AO made addition of Rs. 2,11,789/- on account of difference in receipt as per Service Tax Return and Income Tax Return filed by the assessee company. On failure of the assessee to explain the excess amount of Rs. 2,11,789/- found mentioned in the Service Tax Return.

3. The assessee carried the matter before the Ld. CIT(A) by way of filing the appeal, who has confirmed the addition by dismissing the appeal.

4. Assessee has not preferred to put in appearance despite issuance of the notice of 23/04/2018 duly received on 26.04.2018, consequently, we proceeded to decide the present appeal with the assistance of the Ld. DR as well as on the basis of documents available on the file.

5.

We have heard the Ld. Departmental Representative for the Revenue to the appeal, gone through the documents relied upon and orders passed by the Revenue authorities below in the light of the facts

. Indo Gulf Pest Control, New Delhi. and circumstances of the case.

6.

Perusal of the assessment order passed by the AO, goes to prove that the assessee was given ample opportunities by the AO to explain the difference of Rs. 2,11,789/- found in excess in the Service Tax Return when compared with the Return of income, but assessee has failed to explain the same.

7.

Before Ld. CIT(A), the assessee attributed the difference of Rs. 2,11,789/- found in excess in Service Tax Return when compared with Income Tax return to the minor discrepancies occurred during filing of the Service Tax Return as well as Income Tax Return . But since the returns are filed by the assessee on the basis of books of accounts duly audited difference of Rs. 2,11,789/- cannot occur due to minor discrepancies. So, in these circumstances, AO as well as Ld. CIT(A) has rightly made the addition of Rs. 2,11,789/- being unexplained income. So, we find no illegality or perversity in the impugned order passed by Ld. CIT(A), hence, appeal filed by the Assessee is hereby dismissed.

Order pronounced in the open court on 19/6/2018

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