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Facts
The assessee challenged an addition of Rs. 10,48,005/-, which represented a discrepancy between receipts shown in Form 26AS and those recorded in its books of account. The lower appellate order by the CIT(A)/NFAC was passed ex parte against the assessee.
Held
The Tribunal determined that the issue required a factual reconciliation at the CIT(A)/NFAC level rather than substantive adjudication by the Tribunal. Consequently, the case was restored to the CIT(A)/NFAC for fresh adjudication, granting the assessee three opportunities to present relevant facts.
Key Issues
Addition due to difference in receipts between Form 26AS and books of account; Ex-parte order by the lower appellate authority.
Sections Cited
143(1)
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R PER SATBEER SINGH GODARA, JM:
This assessee’s appeal for assessment year 2018-19 arises against National Faceless Appeal Centre (NFAC), Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1060447705(1), dated 02.02.2024, in case no. NFAC/2017-18/10024176, in proceedings u/s 143(1) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties at length. Case file perused.
It emerges during the course of hearing that the assessee’s sole substantive ground raised in the instant appeal challenges both the learned lower authorities’ action making addition of Rs. 10,48,005/- representing difference in receipts as per Form 26AS vis a vis those recognized as income in the books of account.
Learned Departmental Representative vehemently argues that the impugned addition deserves to be sustained since the assessee has not been able to explain above difference.
I find in this factual background that the instant issue more requires a factual re-conciliation of the assessee’s books vis a vis form 26ASS turnover than any substantive adjudication in second appellate proceedings in the tribunal. Coupled with this, learned CIT(A)/NFAC also appears to have passed impugned lower appellate order ex parte. I, accordingly, deem it appropriate to restore the assessee’s instant appeal back to the CIT(A)/NFAC for his afresh appropriate adjudication as per law, preferably within three effective opportunities of hearing subject to a rider that the assessee shall plead and prove all the relevant facts at its own risk and responsibility in consequential proceedings. Ordered accordingly.
This assessee’s appeal is allowed for statistical purpose in above terms.
Order pronounced in open court on 28.11.2024.