RESPONSE INDIA PVT. LTD.,KOLKATA vs. D.C.I.T., CIRCLE - 11(1),, KOLKATA

The present appeal has been preferred by the assessee against the order dated 07.08.2024 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).

The brief facts of the case are that the assessee filed its original return of income declaring a total income of Rs.3,06,250/-. The assessment was completed u/s 143(3) of the Act. Subsequently, the Assessing Officer recorded reasons to believe that certain income has escaped assessment. Subsequently, proceedings u/s 147 of the Act was initiated after obtaining requisite approval from the competent authority u/s 151 of the Act. The assessee through a letter dated 06.11.2012 requested that the original return to be treated as return filed in compliance to the notice u/s 148. Subsequently, notices u/s 143(2) and 142(1) of the Act were issued to the assessee. In compliance to the Assessment Year: 2006-07 Response India Pvt. Ltd notices, the ld. AR sought time to respond but failed to appear next scheduled date. Accordingly, the Assessing Officer proceeded to complete the assessment based on available records observing a discrepancy in income reported by the assessee. The Assessing Officer noted that the assessee had claimed TDS credit of Rs.4,78,900/- but failed to book corresponding income in the Profit & Loss A/c. the Assessing Officer found that the income credited by the assessee was Rs.75,90,370/- whereas TDS certificate reflected income of Rs.99,71,318/- resulting in a discrepancy of Rs.23,80,948/. As the assessee has failed to provide credible evidence to reconcile this difference, the Assessing Officer passed best judgment assessment u/s 144 r.w.s. 147 of the Act.

Aggrieved by the above order, the assessee filed an appeal before the ld. CIT(A) but failed to furnish adequate explanations and also failed to reconcile the discrepancy. Therefore, the ld. CIT(A) dismissed the appeal of the assessee.

Dissatisfied with the above order, the assessee has come in appeal before this Tribunal stating that certain documents were submitted before the ld. CIT(A) in order to substantiate its claim but these were not properly considered by the lower authorities. Therefore, the ld. AR of the assessee sought one more opportunity before us to present its case so as to reconcile the discrepancy before the ld. CIT(A). He, therefore, prayed before the Bench that the matter may be remanded back to the file of the ld. CIT(A) to allow the assessee to substantiate its claim with appropriate evidences.

On the other hand, the ld. DR did not object to such prayer made by the ld. AR before the Bench.

In terms of the above, the appeal of the assessee is allowed for statistical purposes.