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Facts
The assessee declared a turnover of Rs. 15,39,79,313/- in its P&L account, but the GST data showed a turnover of Rs. 17,20,88,327/-. The Assessing Officer added the difference of Rs. 1,81,09,014/- as suppressed turnover. Additionally, Rs. 623/- was disallowed as GST late fees. The assessee's appeal was dismissed by the CIT(A) ex-parte.
Held
The Tribunal noted that the turnover appearing in the Insight portal (Rs. 15,31,09,373/-) was consistent with the assessee's financial statements and ITR. Regarding the GST late fees of Rs. 623/-, the Tribunal held it to be an allowable expense based on the decisions relied upon by the assessee.
Key Issues
Addition on account of difference in turnover and disallowance of GST late fees.
Sections Cited
144, 144B
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Income Tax Appellate Tribunal, AGRA BENCH ‘DB’ AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
Date of Hearing 04.04.2025 Date of Pronouncement 04.04.2025 ORDER PER BRAJESH KUMAR SINGH, AM,
This appeal filed by the assessee is directed against the ex-parte order dated 24.12.2024 of National Faceless Appeal Centre, Delhi, relating to Assessment Year 2021-22 arising out of order u/s 144 r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred to ‘the Act’) dated 23.12.2022.
Brief facts of the case: The assessment in this case was completed u/s 144 r.w.s. 144B of the Act as the assessee failed to respond to several notices/opportunities given by the Assessing Officer. The Assessing Officer noted that the assessee had shown turnover of Rs.15,39,79,313/- in the profit & loss account as on 31.03.2021 but the GST return data of the assessee available in the Insight module of the Department software showed turnover of Rs.17,20,88,327/- during the same period. In absence of compliance by the assessee, the Assessing Officer added the amount of Rs.1,81,09,014/- to the total income as suppression of turnover.
Aggrieved with the said order, the assessee filed an appeal before the ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee ex-parte even though he called a remand report which was submitted by the Assessing Officer.
Aggrieved with the order of the Ld. CIT(A), the assessee is in appeal before us.
During the hearing before us, the ld. Counsel for the assessee submitted that the assessee had declared turnover of Rs.15,39,79,313/- in the profit & loss account for AY 2021-22, whereas, the data from the Insight portal of the Department software shows turnover at Rs.15,31,09,373/- and furnished the necessary screenshots of the Insight Portal of the Department. According to the ld. AR, it was consistent with the turnover declared in the assessee’s financial statements and Income Tax Return. The written submission of the Ld. AR is reproduced as under:-
This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals) (CIT(A)]. NFAC, dated 24.12.2024, which upheld the additions made by the Assessing Officer (AO) via the order dated 23.12.2022. The primary contentions in this appeal pertain to: • An addition of Rs. 1,81,09,014/- due to the alleged difference between turnover reported in the Profit & Loss (P&L) account and turnover as per the GST return available in the INSIGHT portal of the Income Tax Department.
• Disallowance of Rs. 623/- on account of GST late fees. Facts of the Case 2. The assessee, Mr. Narendra Kumar, is engaged in the proprietary business of scrap trading under the name M/s Ayoniza Enterprises.
The assessee filed his Income Tax Return (ITR) for AY 2021-22 on 08.10.2021, declaring total income of Rs. 14,14,860/- (PB Pg. 2-4).
The case was selected for scrutiny through the CASS module, and a notice under Section 143(2) was issued on 28.06.2022. The scrutiny was triggered due to purchases from suppliers who were either non-filers or had filed non-business ITRs.
The assessee has a turnover of Rs. 15,39,79,313/- in the Profit & Loss account for FY 2020-21.
However, the Id. AO has taken the data from Insight portal (AIS/TIS) and alleged that the assesse has turnover of Rs. 17,20,88,327/-, and made the addition of Rs. 1,81,09,014/- on account of difference in turnover.
Additionally, the Id. AO has also made an addition of Rs. 623/- on account of GST late Fees. No Difference in Turnover of the assesse with the Financial Statements/ ITR with the Insight Portal (AIS/TIS) It is pertinent to note that the turnover appearing in the Insight portal (AIS/TIS) of the Income tax Department is Rs 15,31,09,373/- which is consistent with the turnover declared in the assessee's financial statements and Income Tax Return. This fact can be established from the screenshots attached below.”
In view of the above facts, the ld. AR submitted that the matter may be restored to the file of the Assessing Officer for verification.
The ld. DR supported the orders of the authorities below.
We have heard both the parties and perused the materials available on record. We find merit in the submission of the Ld. AR of the assessee.
However, this requires factual verification by the Assessing Officer.
Therefore, the order of the ld. CIT(A) confirming this addition is set-aside and the same is remitted back to the file of the Assessing Officer to examine the matter afresh after giving due opportunity of being to the assessee and keeping in view the above facts as stated by the assessee.
The assessee is also directed to co-operate in the assessment proceedings before the Assessing Officer. Ground no.3 of the appeal is allowed for statistical purposes.
Ground no.4 of the appeal is against the disallowance of Rs.623 on account of GST late fees. The Assessing Officer disallowed the said sum debited in the profit & loss account on account of being admissible in the eyes of law, which was also confirmed by the Ld. CIT(A).
The ld. AR submitted that late payment of fees amounting to Rs.623 was on account of non-compliance of the provisions of GST Act and not on account of infraction of any law and was not penal in nature. In this regard, the Ld. AR relied upon the following decisions:-
i. Vyoma Technologies Private Limited vs DCIT ITAT Bangalore iii. M/s Maglam Arts vs PCIT, Jaipur,
The Ld. DR supported the orders of the authorities below.
We have heard both the parties and perused the materials available on record. The payment of Rs.623 being on account of GST late fees is an allowable expense in view of the decision relied upon by the assessee.
Therefore, the addition of Rs.623 made by the Assessing Officer and confirmed the Ld. CIT(A) is not sustainable in law and the same is deleted.
Ground no.4 of the appeal is allowed.
13 Grounds no.1, 2, 5 and 6 are general in nature and hence the same are not adjudicated.
In the result, the appeal of the assessee is partly allowed.
Order pronounced in the open court on 4th April, 2025.