Loading judgment…
Facts
The assessee, engaged in transportation and logistics, filed its return of income. During assessment, the AO noticed discrepancies between the assessee's books and AIR data regarding receipts from certain parties and made an ad-hoc addition. Aggrieved, the assessee appealed.
Held
The Tribunal found it necessary to remand the issue back to the AO for verification from the parties concerned regarding the alleged unoffered gross receipts. The AO was directed to issue notice u/s 133(6) and the assessee to furnish details.
Key Issues
Whether the addition made by the AO on ad-hoc basis was justified without proper verification of transactions with third parties as per AIR data.
Sections Cited
133(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “B”, MUMBAI
Before: SMT. BEENA PILLAI & SMT. RENU JAUHRI
Date of hearing 10-10-2024 Date of pronouncement 18-10-2024 O R D E R PER BEENA PILLAI, JM:
Present appeal filed by the assessee arises out of order dated 21.06.2024 passed by the Ld. Addl./JCIT(A)-1, Delhi for Assessment Year 2015-16 on following grounds of appeal:
1. The learned Commissioner of Addl./JCIT(A) erred in confirming the addition by the Assessing Officer amounting to Rs.4,47,874/- being 18% of Rs.24,88,188/-, the sum of money not found in the receipt of your appellant as provided in AIR information. As the appellant prays that the impugned addition of Rs.4,47,874/-.
BLR Logistiks (India) Ltd. Brief facts of the case are as under: 2. The assessee is engaged in the business of transportation and logistics services. For the year under consideration, assessee filed its return of income declaring total income of Rs.2,43,68,420/-. During the assessment proceedings, the Ld. AO called for details in respect of the parties from whom assessee received money as reflected in the AIR data to the extent of Rs.2.87 Cr. 2.1 In response to the notice the assessee prepared detailed statement providing information of such parties. The Ld. AO pointed out that as per books, the gross receipts from the parties was Rs.91.53 Cr. against the amount appearing in the AIR data of Rs.25.87 Cr. It is submitted that the Ld. AO picked up only those parties from whom higher amount was received as per the AIR data, though admitting to the fact that the money is received as per the books was more than the money that was reflected in the AIR data.
3. The Ld. AO without calling for any details made addition on an ad-hoc basis at 18%. Aggrieved by the order of the Ld. AO, the assessee preferred appeal before the Ld. CIT(A). Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal.
It was submitted that, the assessee furnished relevant details, however, no verification was carried out by the authorities below. In